Case Law Details
Malla Foundation Vs CIT (Exemption) (ITAT Bangalore)
The CIT(E) has refused to grant approval u/s 80G of the Act primarily for the reason that the assessee has not produced the necessary proof as regards the activities of the assessee-trust and in absence of the same it is not possible to verify the genuineness of the activities of the assessee-trust. In this context, it is relevant to note that the very same Officer who refused to grant approval u/s 80G of the Act, was the Officer, who granted registration u/s 12AA of the Act a day prior, i.e., on 23.03.2021. Copy of the order u/s 12AA of the I.T.Act is placed on record at page 3 of the paper book filed by the assessee. We fail to understand how registration u/s 12AA of the I.T.Act has been granted on 23.03.2021 when the Officer concerned has not been able to examine the genuineness of the activities of the assessee-trust. The starting of activities of the trust is not a condition precedent for grant of approval u/s 80G of the I.T.Act. On receipt of the approval u/s 80G of the I.T.Act, the assessee would be receiving donations. The receipts of money through donations are the lifeline for starting the charitable activities of the assessee-trust. In the interest of justice and equity, we are of the view that the matter needs to be examined afresh by the CIT(E). Accordingly, the issue raised in this appeal is restored to the files of the CIT(E) for de novo consideration. It is ordered accordingly.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal at the instance of the assessee is directed against CIT(Exemption)’s order dated 24.03.2021.
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