Aruna Kishor Foundation Vs CIT (Exemption) (ITAT Ahmedabad)
ITAT Ahmedabad held that rejection of application u/s. 80G of the Income Tax Act in mechanical and consequential manner is contrary to law as approval u/s. 80G is an independent statutory function requiring separate satisfaction of eligibility parameters. Accordingly, matter restored to CIT(E) for fresh adjudication.
Facts- The present appeals are filed by the assessee against four orders passed by the learned Commissioner of Income Tax (Exemption), Ahmedabad under section 12AB and section 80G of the Income-tax Act, 1961 rejecting applications made by the assessee in Form 10AB for regular registration.
Conclusion- The application for approval under section 80G, though filed simultaneously, was rejected without any separate adjudication. The CIT(E) summarily disposed of the 80G application along with the 12AB rejection, without recording any satisfaction or finding in terms of section 80G(5). The record does not show that any specific notice was issued in respect of the 80G application or that the CIT(E) examined compliance with the relevant statutory conditions. In our view, such mechanical and consequential rejection of the 80G application is contrary to law, as approval under section 80G is an independent statutory function requiring separate satisfaction of eligibility parameters.
