Shikshadaan Foundation Charitable ... vs Assessee

These appeals have been preferred by the assessee against separate orders dated 13-3-2015 passed by the CIT(Exemptions), Chandigarh, u/s 12A and 80G of the I.T. Act, 1961.

ITA no. 2080/Del/2015:

2. The assessee had filed application for registration of trust in form no.

10A in the office of CIT, Faridabad, which was transferred to 2

CIT(Exemptions), Chandigarh.. Ld. CIT(Exemptions) rejected the assessee's application on the ground that assessee had not complied with Rule 17B, which required the assessee to furnish the audit report in form no. 10B.

3. Ld. counsel for the assessee submitted that there is no requirement of furnishing audit report u/s 12AA, which prescribes the procedure for registration.

4. Having heard both the parties we find considerable force in the submissions of ld. counsel for the assessee because the procedure for registration of a trust or institution has been prescribed u/s 12AA and only when the registration is granted, the assessee becomes eligible for exemption u/s 11. At the time of grant of registration the ld. CIT is required to examine whether the assessee trust fulfills the mandate prescribed u/s 12AA or not. Since the ld. CIT(E) has not examined the application, having regard to section 12AA, we set aside the order of ld. CIT(E) and restore the matter back to his file for de novo consideration.

ITA no. 2081/Del/2015:

5.Similarly, assessee had filed application in form 10G for grant of approval u/s 80G(5)(vi) in the office of CIT, Faridabad, which was transferred to CIT(Exemptions), Chandigarh. Ld. CIT(Exemptions) rejected the assessee's application on the ground that assessee had not complied with Rule 17B, which required the assessee to furnish the audit report in form no. 10A.

3 6. On similar facts, in assessee's appeal for registration u/s 12A, we have restored the matter to the file of ld. CIT(E) for decision afresh. Therefore, for the very same reasons herein also we set aside the order of ld. CIT(E) and restore the matter back to his file for de novo consideration of assessee's application for grant of approval u/s 80G(5)(vi) of the I.T. Act.

7. In the result, both the appeals stand allowed for statistical purposes only.

Order pronounced in open court on 29/05/2015..

Sd/- Sd/- (A.T. VARKEY. ) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29/05/2015. *MP* Copy of order to: 1. Assessee 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, New Delhi.