Tribunal grants registration & approval for spiritual & charitable activities under Income-tax Act

The Tribunal overturned the Commissioner of Income Tax (Exemptions)'s denial of registration under section 12AB of the Income-tax Act, emphasizing that all necessary information was provided by the Trust for activities such as teaching spirituality and charitable work. Similarly, the Tribunal directed the grant of approval under section 80G, noting similarities in the reasons for denial with the registration issue. Both appeals were allowed, and orders were pronounced on 22nd June, 2023.

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Issues involved:
The denial of Registration u/s. 12AB of the Income-tax Act, 1961 and the denial of approval u/s. 80G.

Registration u/s. 12AB:
The assessee, established by Trust Deed, applied for provisional registration which was granted. Subsequently, the final registration was sought but was denied by the CIT(E) due to inadequate evidence. The Tribunal noted that necessary details were furnished by the assessee in response to notices, including activities such as teaching spirituality, donating food, books, and providing for the needy. Despite provisional registration, the CIT(E) denied registration citing non-compliance with section 12AB(1)(b)(i) without pointing out any specific shortcomings. The Tribunal overturned the decision, emphasizing that all required information was provided, and directed to grant registration u/s. 12AB.

Approval u/s. 80G:
The circumstances for the appeal regarding rejection of approval u/s. 80G(5) mirrored those of the registration issue. The CIT(E) cited similar reasons for denial as in the registration case. Following the decision on the registration appeal, the Tribunal directed to grant approval u/s. 80G of the Act.

Both appeals were allowed, and the orders were pronounced in the Open Court on 22nd June, 2023.

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