Sanand Nyas Vs CIT (Exemption) (ITAT Indore)
ITAT Indore held that trust has passed resolution dealing with dissolution and utilization of assets in event of dissolution. Accordingly, the said resolution must be accepted by CIT(E) for granting final approval under section 80G of the Income Tax Act. Thus, matter remanded to the file of CIT(E).
Facts- The assessee is a public charitable trust established in the year 1993 by a Trust-Deed dated 26.09.1993. The assessee got registration under the M.P. Public Trust Act, 1951 w.e.f. 29.09.2003. The assessee was also granted registration by Income-tax Department u/s 12A w.e.f. 18.07.1994 and approval u/s 80G w.e.f. 31.03.1995. After introduction of new provisions in Income-tax Act, 1961 for registration/approval u/s 12A/80G [“new regime”] w.e.f. 01.04.2021, the assessee re-applied to Income-tax Department for grant of registration/approval under new regime.
The authorities granted provisional registration u/s 12A vide Order dated 24.09.2021 for AY 2022-23 to 2026-27 and provisional approval u/s 80G vide Order dated 20.01.2023 for the period 20.01.2023 to AY 2025-26. Thereafter, the assessee filed application dated 25.09.2024 [Form No. 10AB] under clause (iii) of first proviso to sub-section (5) of section 80G for conversion of provisional approval u/s 80G into final approval but CIT(E) rejected assessee’s application vide Order dated 28.03.2025. The assessee is aggrieved by this Order dated 28.03.2025 of CIT(E) [“impugned order”] and has come in present appeal before us.
