Sportseed Foundation Vs ITO (ITAT Delhi)
New trust need not show spend to get registration: ITAT restores 12AB & 80G applications of nascent foundation
Delhi ITAT set aside rejection of applications for registration u/s 12AB(1)(b)(ii) & approval u/s 80G(5)(iii) & restored the matter to the file of CIT(E) for fresh consideration. Tribunal noted that the Foundation was incorporated only on 26-05-2022 & was at a nascent stage, & therefore absence of expenditure or charitable activities in initial year could not, by itself, justify denial of registration.
ITAT held that at the stage of registration, the authority is required to examine the objects & prima facie genuineness, keeping in mind the early stage of the institution. Rejection merely for want of bills, vouchers, or expenditure was held unjustified. Matter was remanded to CIT(E) with direction to consider the applications afresh after granting reasonable opportunity & taking into account the nascent nature of the trust. Appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
Both the above captioned separate appeals by the assessee are preferred against the order of the ld. CIT(E), Delhi dated 21.12.2023 rejecting the application for registration u/s 12AB(1)(b)(ii) and application for grant of approval u/s 80G(5)(iii) of the Income-tax Act, 1961 [the Act, for short].
