Case Law Details
West Bengal Welfare Society Vs CIT(Exemption) (ITAT Kolkata)
Introduction: The recent appeals filed by West Bengal Welfare Society at ITAT Kolkata address concerns related to registration under sections 12AA and 80G of the Income Tax Act. The society challenged the orders dated 27.06.2023, issued by the Commissioner of Income Tax (Exemption), Kolkata (CIT(E)), rejecting their applications for final registration. The appeals, ITA No.730/Kol/2023 and ITA No.731/Kol/2023, focus on issues pertaining to charitable institution status and eligibility for tax exemption.
Detailed Analysis:
1. Application for Final Registration u/s 12AA: The society, seeking recognition as a charitable institution, faced rejection by the CIT(E). The counsel for West Bengal Welfare Society argued that the order was ex parte, emphasizing the lack of proper opportunity granted by the CIT(E) to present the case. The Tribunal acknowledged the inadequacy of the opportunity given and set aside the order, restoring the matter to the CIT(E) for a fresh decision.
2. Appeal for Registration u/s 80G: West Bengal Welfare Society’s appeal (ITA No.731/Kol/2023) pertains to the rejection of its application for final registration under section 80G. The CIT(E) incorrectly interpreted the time frame for filing the application under Clause (iii) of the first proviso to section 80G(5) of the Act. The Tribunal clarified that the society, having obtained provisional approval on 30.11.2022, could apply for final registration within six months of activity commencement or six months prior to provisional approval expiration. The Tribunal restored the matter to the CIT(E) for a fresh decision.
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