SHRI MADHAV SMRITI SEWA KENDRA,FARIDABAD V. WARD 1(3), FARIDABAD

ITA 6018/DEL/2024

AI Insights

The case involves Shri Madav Smrity Sewa Kendra, a registered society, appealing against the decision of the Commissioner of Income Tax (Exemptions), Chandigarh, which denied them exemption under section 80G of the Income Tax Act. The primary contention was the maintainability of their application for exemption, which was initially dismissed by the ld PCIT on the grounds that the society filed ITR-7, thus making their application under section 80G(5)(iv)(B) not maintainable. The tribunal found that the registration under section 12AB was still in force and that the filing of ITR-7 was irrelevant to the consideration of the exemption under section 80G(5). Consequently, the tribunal restored the matter to the ld PCIT for a fresh decision on the exemption application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314663 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: MAHESH KUMAR
• Assessee Lawyers: GAUTAM JAIN
• Section: 80G

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA Nos. 6036 & 6018/Del/2024 (Assessment Year: 2024-25) Shri Madav Smrity Sewa Kendra, H. No. 1143, Sector-19, Faridabad, Haryana Vs. Commissioner of Income Tax (Exemptions), Chandigarh (Appellant) (Respondent) PAN: AAWAS6413N Assessee by : Shri Gautam Jain, Adv Shri Ankit Kumar, Adv Revenue by: Shri Mahesh Kumar, CIT DR Date of Hearing 05/05/2025 Date of pronouncement 09/05/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The appeals in ITA Nos. 6036 & 6018/Del/2024 for AY 2024-25, arise out of the order of the Commissioner of Income Tax (Exemptions), Chandigarh [hereinafter referred to as ‘ld. CIT(E)’, in short] dated 19.09.2024. ITA No. 6036/Del/2024 for AY 2024-25 2. This appeal arises out of the order passed by the ld PCIT denying the exemption u/s 80G of the Act by stating that appeal of the assessee is not maintainable. ITA Nos. 6036 & 6018/Del/2024 Shri Madav Smrity Sewa Kendra Page | 2 3. We have heard the rival submissions and perused the material available on record. It is not in dispute that the assessee is a registered society duly registered with Registrar of Societies, Chandigarh. The assessee was granted provisional registration in Form 10AC of the Act for AYs 2022-23 to 2024-25 vide order dated 31.12.2021 u/s 12A(1)(ac)(vi) of the Act. The assessee filed an application in Form 10AB u/s 12A(1)(ac)(iii) of the Act on 30.09.2023. Permanent registration was granted u/s 12AB(1)(b) of the Act by the ld CIT(E), Chandigarh for AYs 2022-23 to 2026-27 on 27.03.2024. The assessee filed an application seeking exemption u/s 80G(5) of the Act before the ld PCIT. On 10.03.2022 provisional approval was granted by the ld PCIT u/s 80G(5)(iii) of the Act from 10.03.2022 to AY 2024-25. On 30.03.2024, an application in Form 10AB was filed under 1st proviso to Section 80G(5)(iv) of the Act. The ld PCIT passed an order in Form 10AD on 19.09.2024 dismissing the application of the assessee as not maintainable by observing that the assessee has filed ITR-7 and hence, could not have filed application u/s 80G(5)(iv)(B) of the Act and accordingly, the application is not maintainable. It is pertinent to note that the registration granted u/s 12AB is still in force to the assessee and filing the return in ITR-7 is of no relevance as far as considering the claim of exemption u/s 80G(5) of the Act is concerned. Even the 2nd proviso to section 80G(5)(iv) of the Act enables the ld PCIT to call for certain documents and make enquiries regarding the activities of the trust. In these circumstances, we hold that the ld PCIT erred in dismissing the application of the assessee as not maintainable. Hence, we deem it fit and appropriate to restore this appeal to the file of ld PCIT to consider the application seeking exemption u/s 80G(5) of the Act afresh in accordance with law. Accordingly, grounds raised are allowed for statistical purposes. ITA Nos. 6036 & 6018/Del/2024 Shri Madav Smrity Sewa Kendra Page | 3 4. In the result, the appeal is allowed for statistical purposes. ITA No. 6018/Del/2024 5. At the time of hearing, the ld AR submitted that he has been instructed not to press the appeal. Accordingly, the appeal is hereby dismissed as not pressed. 6. To sum up, the appeal of the assessee in ITA 6036/Del/2024 is allowed for statistical purposes and appeal of the assessee in ITA No. 3018/Del/2024 is hereby dismissed as withdrawn. Order pronounced in the open court on 09/05/2025. -Sd/- -Sd/- (YOGESH KUMAR U.S.) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 09/05/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "