In a significant case of Tata Education and Development Trust, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that CIT(E) has no Jurisdiction to impose unstipulated conditions while granting registration under section 80G of the Income Tax Act,1961.
The assessee trust challenged the separate impugned orders passed by the Principal Commissioner of Income Tax / Commissioner of Income Tax granting registration under clause (i) of the first proviso to section 80G(5) of the Income Tax Act, 1961 (the Act‘), for assessment years 2022–23 to 2026-27.
The assessee trust has raised against the grant of registration under section 80G of the Act subject to certain conditions as mentioned in the impugned order passed in Form No. 10 AC. It was contended that the Principal Commissioner of Income-Tax in issued an order granting registration under section 80G of the Income Tax Act, 1961 (ITA) dated 24.09.2021 which imposed conditions based on which the registration was granted, even though there is no provision in the ITA which permits the PCIT to grant conditional registration.
In the case of Chamber of Indian Charitable Trusts (supra), the assessee trust had submitted an application u/s 80G of the Act and vide order dated 28th May 2021 in Form No. 10AC, the CIT(E) granted the registration under clause (iii) of the second proviso to section 80G(5) of the Act.
It was noted that the CIT(E) again imposed conditions while passing the impugned order. Being aggrieved by the CIT(E)‘s action of stipulating several conditions while granting registration u/s 80G, the assessee is in appeal before us.
It was noticed that clause (vi) of Section 80G of the Act provided that the Trust has to be approved by the PCIT or CIT. Further stated that the PCIT / CIT was not conferred with any powers to impose conditions while granting provisional approval under section 80G and therefore urged that these conditions be struck down.
In light of the view taken by the Co–ordinate Bench in the aforesaid decision, a Coram consisting of Shri Amarjit Singh, Accountant Member, and Shri Sandeep Singh Karhail, Judicial Member allowed the appeal by the assessee trust in the present batch of appeals was allowed.
Shri SukhsagarSyal appeared on behalf of the assessee and Shri Harishankar Lal appeared on behalf of the revenue.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to TaxscanAdFree. Follow us on Telegram for quick updates.
