Chandigarh Educational Society Vs DCIT/ACIT (ITAT Chandigarh)
The ITAT Chandigarh allowed the assessee’s appeals for statistical purposes and remanded the matter relating to approval under Section 80G of the Income-tax Act, 1961, to the competent authority for fresh consideration.
The assessee, a charitable institution claiming to be engaged in charitable activities, had applied for approval under Section 80G. The Principal Commissioner of Income Tax (Central), Gurgaon rejected the application primarily on the ground that the assessee’s application for registration under Section 12AB had already been rejected by an order dated 26.12.2025. The authority held that the absence of registration under Section 12AB meant that one of the essential conditions for grant of approval under Section 80G remained unfulfilled.
Before the Tribunal, the assessee submitted that the rejection of approval under Section 80G was solely based on the denial of registration under Section 12AB. It was pointed out that a Coordinate Bench of the Tribunal, by order dated 21.04.2026 in the assessee’s own case, had already directed the Revenue authorities to grant registration under Section 12AB.
The Tribunal noted that the primary basis for rejecting the Section 80G application no longer survived because registration under Section 12AB had subsequently been directed to be granted. Therefore, the impugned order rejecting approval under Section 80G could not be sustained to that extent.
