The Mumbai Bench of the Income Tax Appellate Tribunal ( ITAT ), held that Commissioner of Income Tax (Exemptions) (CIT(E)) cannot impose conditions on his own while granting approval under Section 80G of the Income Tax Act, 1961.
In the present appeal the assessee, Bai Navajbai Tata Zoroastrian Girls School is a charitable trust registered under Section 12A of the Income Tax Act.
The appeal has been preferred by the assessee against the order of the Commissioner of Income Tax (Exemptions), whereby the CIT(E) granted approval u/s 80G(5) of the Income Tax Act, 1961. However, the grant of approval was made subject to several conditions imposed in Form no. 10AC while granting registration under clause (iii) of proviso to section 80G(5) of the Income Tax Act.
Being aggrieved by the CIT(E)’s action stipulating several conditions while granting registration u/s 80G of the Income Tax Act, the assessee is an appeal before the Tribunal.
In the case of Chamber of Indian Charitable Trusts vs. PCIT, it was held that the CIT(E) did not enjoy the power to prescribe or impose any conditions on his own (other than what is stipulated in law) while granting the registration under Section 12AB of the Income Tax Act, we similarly hold that the CIT(E) lacked jurisdiction to impose any conditions on his (other than what is stipulated in law) while granting the approval under Section 80G of the Income Tax Act as well.
After hearing detailed submissions, a Bench consisting of Aby T Varkey, Judicial Member and Pramod Kumar, Vice President observed that “We hold that the CIT(E) did not enjoy the power to impose any conditions on his own while granting the approval u/s 80G of the Income Tax Act (other than what is stipulated in law).”
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