In the recent ruling, the Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) dismissed the appeal for registration under section 12A after the assessee withdrew it following the filing of a fresh application.
Yug Nirman Gayatri Parivar Trust,the appellant-assessee,had appealed against the rejection order dated 28/03/2024 issued by the Commissioner of Income-tax (Exemption)[(CIT(E)], Ahmedabad, denying registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961.
Section 12A(1)(ac)(iii) of the Income Tax Act, 1961, pertains to the conditions for granting registration to a trust or institution under section 12AA or 12AB. It specifies the criteria for determining whether the activities of the trust or institution are for charitable purposes, emphasizing the need for the organization to adhere to certain operational and reporting standards to maintain its tax-exempt status.
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The grounds raised by the assessee were, firstly, that the CIT erred in law and in the facts by rejecting the application for registration under section 10AD of the Act. Secondly, the CIT erred in rejecting the provisional registration granted earlier.
Section 10AD of the Income Tax Act, 1961, offers exemptions for income earned by charitable trusts and institutions that operate exclusively for charitable purposes. To qualify, the income must not benefit specific individuals or groups. The trust or institution must comply with conditions under sections 11 and 12, ensuring proper record-keeping and filing necessary applications for exemption while maintaining transparency in their operations.
Shri Tej Shah appeared on behalf of the assessee and submitted a letter dated 23/09/2024, signed by the appellant, Yug Nirman Gayatri Parivar Trust, which was placed on record. In the letter, the assessee sought permission to withdraw the appeal as they had applied for fresh registration under section 12AB. Since the assessee considered the appeal unnecessary, permission was granted to withdraw it.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
Shri Prithviraj Meena appeared for the Revenue and expressed no objection to the withdrawal of the appeal. Since the assessee wished to withdraw its appeal in ITA No. 783/Ahd/2024, filed on 19/04/2024, as stated in the withdrawal application dated 23/09/2024, permission was granted to withdraw the appeal.
The two member bench comprising T.R.Senthil Kumar (Judicial Member) and Makarand V.Mahadeokar (Accountant Member) dismissed the assessee’s appeal as withdrawn.
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