Salaam Social Medical Services Foundation Vs CIT (Exemption) (ITAT Mumbai)
ITAT Mumbai held that issue of approval under section 80G of the Income Tax Act is liable to be restored back to CIT(E) since fresh application in Form 10AB is already pending for adjudication.
Facts- The applicant has filed Form 10AB on 28.03.2024 and requested for approval u/s 80G of the Income-tax Act, 1961, under clause (iii) of first proviso to sub-section (5) of section 80G of the Act after obtaining provisional approval in Form 10AC.
The applicant has also obtained provisional registration dtd. 27.05.2021 u/s 12A which was valid for the period AY 2022-23 to 2024-25. However, the assessee did not apply for regularization of the Provisional registration. Instead, the assessee again applied and received provisional registration u/s 12A valid from AY 2024-25 to AY 2026-27. The second provisional registration received by the Assessee is not valid as the assessee should have applied for regularization of 12A registration once it received the provisional registration for the first time on 27.05.2021. Thus, the assessee does not have a valid 12A registration as it has applied for regularization of 80G approval.
The provision of section 80G(5)(i) of the Act stipulates the condition that the provision of this section is only available for institution or fund for which section 11,12 or clause 23AA or clause 23C of section 10 of the Act applies. The applicant fails to fulfil any of the above criteria in view of the rejection of its application for registration u/s 12AB of the Act. Thus, its application for approval u/s 80G of the act becomes untenable. Thus, application in Form 10AB for approval u/s 80G of the Act is rejected.
