CIT (Excemptions) Vs Tapeshwar Hanumaji Bajrang Charity Trust (Gujarat High Court)
The Revenue filed the present Tax Appeal under Section 260A of the Income-tax Act, 1961 challenging the order dated 31.07.2018 passed by the Income Tax Appellate Tribunal, Surat Bench, for Assessment Year 2014-15. Although served with notice, the respondent-assessee did not appear before the High Court.
The appeal was admitted on two substantial questions of law: (i) whether the Tribunal erred in directing grant of approval under Section 80G despite the trust not fulfilling the conditions under Section 80G(5) read with Rule 11AA(2)(i) of the Income-tax Rules, 1962, and (ii) whether approval under Section 80G could be granted when the trust was not registered under Section 12AA, which the Revenue contended was a prerequisite.
Material Facts
The respondent-trust, registered as a public charitable trust with the Assistant Charity Commissioner on 08.08.2011, applied to the Commissioner of Income Tax, Valsad, for approval under Section 80G(5) by filing Form No. 10G on 27.03.2014.
The Commissioner rejected the application on the ground that the trust had not obtained registration under Section 12A. Referring to Section 80G(5)(vi) read with Rule 11AA(2)(i), the Commissioner held that registration under Section 12A was essential for approval under Section 80G and, since the trust lacked such registration, the statutory conditions were not satisfied.
