2024 (6) TMI 527

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....24, the assessee has challenged the rejection of application for registration of assessee-trust under Section 12A/12AB of the Income Tax Act, 1961 (in short, the Act) and in ITA No. 370/Srt/2024, the assessee has challenged the rejection of approval under Section 80G(5) of the Act. Facts in both the appeals are common and grounds of appeal in both these appeals are interconnected, therefore, both these appeals were clubbed and heard together and are being denied by this common order to avoid the conflicting decision. For appreciation of facts, we take ITA No. 369/Srt/2024 as a lead case. In this appeal, following grounds of appeal have been raised by the assessee. "1. The ld. CIT(E) erred in law and on facts in denying registration u/s 12....

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....e has explained the inadvertent mistake, the ld. CIT(E) ought to have accepted the explanation instead of rejecting application on technical ground. The ld. AR of the assessee submits that the assessee has good case on merit and is likely to succeed if in case one more opportunity is given with direction to ld. CIT(E) to treat the application of assessee under Section 12A(1)(ac)(iii) instead of Section 12A(1)(ac)(iv). The assessee fulfilled all other remaining condition for registration under Section 12A/12AB of the Act, i.e. charitable object and genuinenity of activities. Similar submissions were made by ld AR for assessee in respect of grounds of appeal in ITA No. 370/Srt/2024, that the applicant selected inappropriate clause Section 80....

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....n 12A/12AB or for approval under section 80G(5) afresh on fulfilling the required conditions thereof. 5. We have considered the submissions of both the parties and perused the record carefully. There is no dispute that the assessee applied for registration under Section 12A/12AB of the Act under Form 10AB on 28.09.2023. The ld. CIT(E) while considering the application of assessee noted that the application filed by assessee is not maintainable and accordingly, a show cause notice dated 02/11/2023 was issued for seeking clarification. The assessee responded to the show cause notice of ld CIT(E) vide their reply dated 15.12.2023. The contents of show cause notice and the reply thereof is not recorded by ld CIT(E) in his order. We find that t....

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....h complete details to prove its object and activity and make all compliances as desired by the ld. CIT(E). In the result, the grounds of appeal raised by the assessee are allowed for statistical purposes only. 6. In the result, the appeal of assessee in ITA No. 369/Srt/2024 is allowed for statistical purpose. 7. So far as grounds of appeal in ITA No. 370/Srt/2024 is concerned, we find that the assessee filed their application in Form-10AB on 29.09.2023 for approval under section 80G(5). The application same was rejected by ld CIT(E) by taking view that the applicant was required to filed application under Section 80 G(5)(iii) in lieu of Section 80G(5)(ii) of the Act. Considering the facts that on similar objection, we have set-aside the o....