TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether the rejection of registration under section 12AB of the Income-tax Act, 1961 was sustainable; (ii) Whether recognition under section 80G of the Income-tax Act, 1961 could be denied when registration under section 12AB was rejected.
Issue (i): Whether the assessee's application for registration under section 12AB should be restored to the file of the CIT(E) for fresh decision due to curable defects (including lack of registration under Rajasthan Public Trusts Act at the time of application).
Analysis: The rejection was based principally on the assessee not being registered under the Rajasthan Public Trusts Act and on findings regarding the nature of receipts. The defect identified (absence of RPT registration at the time of application) was capable of being cured by production of registration and further material. The Bench found that the reasons for rejection were curable and merited an opportunity for the assessing authority to reconsider the application afresh on production of the requisite registration and documents.
Conclusion: The matter of registration under section 12AB is restored to the file of the CIT(E) for fresh adjudication in accordance with law; this conclusion is in favour of the assessee.
Issue (ii): Whether recognition under section 80G, which was denied solely because section 12AB registration was refused, should also be restored for reconsideration.
Analysis: Recognition under section 80G was denied only on the ground that registration under section 12AB was not granted. Since the section 12AB issue is being remitted for fresh decision, the ancillary denial of 80G recognition is dependent on that outcome and is therefore appropriate for restoration to the same authority for fresh consideration.
Conclusion: The matter of recognition under section 80G is restored to the file of the CIT(E) for fresh adjudication; this conclusion is in favour of the assessee.
Final Conclusion: Both the registration matter under section 12AB and the recognition matter under section 80G are remitted to the CIT(E) for fresh decision and the appeals are allowed for statistical purposes, without expressing any view on the merits.
Ratio Decidendi: Where an application for statutory registration is rejected for reasons that are curable (such as absence of a prerequisite registration that can subsequently be produced), the appropriate remedy is to restore the matter to the authority for fresh consideration rather than to sustain dismissal on that ground.
TaxTMI 
