Rotary Charity Trust Vs CIT (Exemption) (ITAT Mumbai)
ITAT Mumbai ruled on the appeal of Rotary Charity Trust against the rejection of its application for final registration under Section 80G(5) of the Income-tax Act, 1961. The trust, established in 1996, initially secured provisional registration under Section 80G but mistakenly cited the wrong clause when applying for final approval. The CIT(Exemption) rejected the application, stating that the trust had claimed tax exemptions in previous years and did not meet the conditions under the selected clause. The assessee contended that the incorrect section was chosen inadvertently and that they were not given a fair opportunity to clarify the error. The ITAT found merit in this argument and, referencing a similar case, directed the CIT(E) to reconsider the application under the correct clause. The matter was remanded to ensure the trust’s eligibility for 80G approval is assessed appropriately before its provisional registration expires.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal filed by the assessee is against the order of Ld. CIT(Exemption), Mumbai, vide order no. ITBA/EXM/F/EXM45/2024-25/1069594414(1), dated 10.10.2024. The issue contended by the assessee in this appeal pertains to the CIT(E) rejecting the application for final registration under section 80G(5) of the Income-tax Act, 1961 (the Act).
