Case Law Details
Akhil Hind Mahila Parishad Vs Commissioner of Income-Tax (Exemption) Ahmedabad (ITAT Surat)
Introduction: The case of “Akhil Hind Mahila Parishad vs Commissioner of Income-Tax (Exemption) Ahmedabad” revolves around the denial of recognition under section 80G of the Income Tax Act. The issue pertains to the denial of recognition due to the rejection of the application for registration under section 12AB of the Act. This analysis explores the arguments presented, the tribunal’s stance, and the outcome of the case.
Analysis: In this case, multiple separate assessee-trusts had their applications for recognition under section 80G rejected by the Commissioner of Income-Tax (Exemption). The rejection was based on the denial of registration under section 12AB due to reasons such as inadequate explanation of trust objects, mismatched names, and submission of additional evidence.
The appellants argued that since the Tribunal had remitted the matter of registration back to the Commissioner for fresh adjudication, the recognition under section 80G should also be remitted for reconsideration. The Revenue (CIT-DR) did not object to this proposition.
The Tribunal recognized the interdependence of registration under section 12AB and recognition under section 80G. It noted that an entity must be registered under section 12AB to be eligible for recognition under section 80G. As the Tribunal had remitted the registration issue back to the Commissioner for reconsideration, it was inappropriate to adjudicate on the recognition under section 80G. Thus, the Tribunal allowed the appeals and directed the matters to be remitted for fresh adjudication on recognition under section 80G.
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