Nisa Foundation Vs CIT (Exemption) (ITAT Ahmedabad)
ITAT Ahmedabad held that matter regarding rejection of registration under section 12A of the Income Tax Act remitted back to file of CIT(E) with direction to explain the fulfillment of conditions as stipulated u/s.12A(1)(ac)(vi)-Item B of the Act.
Facts- The assessee is a trust and had filed an application in Form 10AB for registration of the trust u/s.12A(1)(ac)(vi)(B) of the Act, which was rejected by the Ld. CIT(E). Further, the assessee had also filed an application for approval of the trust u/s. 80G of the Act, which was also rejected for the reason that a valid registration certificate u/s.12A of the Act was a mandatory condition for according approval u/s.80G of the Act. Being aggrieved, the present appeal is filed.
Conclusion- Held that we deem it proper to set aside the matter to the file of the Ld. CIT(E) with a direction to allow another opportunity of being heard to the assessee to explain the fulfillment of conditions as stipulated u/s.12A(1)(ac)(vi)-Item B of the Act. The assessee is also directed to make compliance before the Ld. CIT(E) and to submit the documents and details as required by him.
Held that CIT(E) had rejected the application for approval u/s. 80G(5)(iv)(B) of the Act for the reason that registration u/s.12A of the Act was a pre-requisite condition for grant of approval. Since, the matter regarding registration u/s.12A of the Act has been set aside to the file of the Ld. CIT(E), we deem it necessary to set aside the present matter as well to the file of the Ld. CIT(E), who will re-adjudicate the issue of approval u/s.80G of the Act after deciding the matter of registration u/s.12A of the Act.
