Arham Foundation Vs CIT (ITAT Pune)
ITAT Pune held that application for registration u/s. 12A r.w.s 12AB of the Income Tax Act cannot be denied for non-obtaining of prior permission of Charity Commissioner for loans since the same is procedural lapse. Accordingly, order of CIT(E) set aside and registration u/s. 12A r.w.s. 12AB granted.
Facts- The Assessee filed application in Form No.10AB for registration u/s.12A of the Act, on 07.11.2024 before Commissioner of Income Tax(Exemption). CIT(E) issued notices to the Assessee. CIT(E) after considering the submission of the Assessee held that since Assessee has not obtained prior permission of Charity Commissioner u/s.36A of the Maharashtra Public Trust Act, before taking loans from the Trustees, hence, Assessee is not eligible for registration u/s.12A r.w.s. 12AB of the Act. Accordingly, CIT(E) rejected the application of the Assessee. Aggrieved by the order of CIT(E), Assessee filed appeal before this Tribunal.
Conclusion- Held that the non-obtaining of prior permission of Charity Commissioner for impugned advances/loans is a procedural lapse and is not a violation of law as envisaged in Section 12AB(1)(b)(B) of the Act. Therefore, we are satisfied that Assessee’s objects are charitable in nature and activities are also charitable in nature as defined in Section 2(15) of the Act. Thus, we are of the opinion that Assessee is eligible for registration u/s.12A r.w.s 12AB of the Act. Accordingly, we set-aside the order of CIT(E) and direct him to grant registration u/s.12A r.w.s 12AB of the Act. In the result, appeal of the Assessee is allowed.
