Vallab Yuyak Parishd Vs CIT (E) (ITAT Varanasi)
Summary: The appeal was filed by Shree Vallab Yuyak Parishd against the order dated 24.12.2024 passed by the Commissioner of Income Tax (Exemption), whereby the assessee’s application for registration under section 80G(5)(ii) of the Income Tax Act, 1961 was rejected. The assessee had filed the application in Form No. 10AB on 29.06.2024.
The assessee had earlier been granted provisional registration under section 80G(5)(iv) on 05.04.2022, valid from AY 2022-23 to AY 2024-25. The CIT(E) observed that section 80G(5)(ii) applied to trusts or institutions already registered under section 80G(5) for five years where the period of such registration was due to expire. Since the assessee held only provisional registration, the CIT(E) considered the application under section 80G(5)(ii) premature and non-maintainable. The application was accordingly rejected, while the provisional registration under section 80G(5)(iv) remained undisturbed. The provisions relating to section 80G and Form No. 10AB are materially relevant to the application process.
Before the Tribunal, the assessee’s counsel submitted that notice of the appeal fixation had been received shortly before the hearing and therefore the necessary records and Paper Book could not be compiled. An adjournment was sought. The Departmental Representative, however, submitted that the CIT(E) had not recorded any adverse inference against the assessee or withdrawn any existing exemption. According to the Revenue, the application had merely been rejected because it was made under the wrong section, and the assessee could file a fresh application under the correct section for consideration in accordance with law.
