Vanaprastha Foundation Vs CIT (ITAT Pune)
80G Approval Cannot Be Denied When 12AB Registration Issue Is Pending — Matter Remanded for Fresh Decision
The Pune Bench of the ITAT allowed the appeal of Vanaprastha Foundation for statistical purposes and set aside the order of the CIT (Exemption), Pune rejecting approval under Section 80G(5).
The CIT (Exemption) had denied 80G approval solely on the ground that the assessee’s registration under Section 12AB had been rejected. However, the Tribunal noted that in the assessee’s own case, the ITAT had already restored the 12AB registration issue to the file of the CIT (Exemption) for reconsideration.
Given that 80G approval is consequential to 12AB registration, and the foundational issue was pending fresh adjudication, the ITAT held that rejection of 80G approval at this stage was premature. Accordingly, the Tribunal remanded the matter to the CIT (Exemption) to decide the 80G approval afresh after reconsidering the registration issue and after granting reasonable opportunity of hearing to the assessee. The assessee was directed to cooperate and furnish requisite documents, failing which the authority could proceed as per law.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal filed by the assessee is directed against the order dated 30.09.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for approval u/s 80G(5) of the IT Act.
