Mangalayatan University Vs Ld. CIT (Exemption) (ITAT Jabalpur)
CIT(E) can’t presume CSR violation without MCA finding- 80G rejection premature when 12AB matter pending – ITAT directs fresh consideration by CIT(E)
Jabalpur ITAT has directed CIT (Exemption) to reconsider afresh the application of Mangalayatan University for approval u/s 80G(5)(iii), after observing that the earlier rejection was based on incomplete verification of facts & premature conclusions.
Tribunal noted that the issue of registration u/s 12AB-being a precondition for 80G approval-had already been restored for fresh adjudication, & therefore, the denial of 80G benefit could not survive independently.
Background
Assessee, Mangalayatan University, a charitable educational institution registered under the Societies Act, had applied for renewal of registration u/s 80G(5)(iii) before CIT (E), Bhopal. The said authority, however, rejected the application & simultaneously cancelled the provisional registration, citing multiple deficiencies such as:
- Improper maintenance of books of account — particularly non-reflection of interest payable @7.5% to Helpage Finlease Ltd.;
- Receipt of CSR donations before obtaining CSR registration under MCA Notification dated 22.01.2021; &
- Alleged delay in filing Form 10AB beyond the time limit prescribed under CBDT Circular No.8/2022.
Consequently, CIT(E) also cancelled the provisional approval in Form 10AC dated 30.03.2022, holding that since Assessee’s registration u/s 12AB was not renewed, the application for approval under section 80G was not maintainable.
