Case Number: ITA 5589/DEL/2019
Appellant: Nursing Tree, New Delhi
Respondent: CIT (Exemption), New Delhi
Case Filed On: 2019-06-26
Order Type: Final Tribunal Order
Date of Order: 2023-02-08
Pronounced On: 2023-02-08
Assessment Year: –
Result: –
This case involves the appeal by Nursing Tree, New Delhi against the order of the Commissioner of Income Tax (Exemptions) [CIT(E)], New Delhi, dated 27.05.2019. The appeal was filed on 2019-06-26 and the order was pronounced on 2023-02-08. The main issues in this case were the denial of approval under section 80G and registration under section 12A of the Income Tax Act, 1961.
Nursing Tree, a trust based in New Delhi, filed Form No.10A for registration under section 12A/12AA and Form No.10G for approval under section 80G(5) of the Income Tax Act. The CIT(E) rejected both applications, leading to the present appeal. The trust aimed to provide charitable activities, but the CIT(E) found the objects of the trust to be commercial in nature, which led to the rejection.
The appellant raised the following grounds of appeal:
The Income Tax Appellate Tribunal (ITAT) heard the appeals on 2023-02-08. The tribunal noted that the recent order of the Hon’ble Supreme Court in the case of ACIT vs. Ahmedabad Urban Development Authority [2022] 449 ITR 01 (SC) was not available when the CIT(E) passed the impugned order. Therefore, the tribunal set aside the order dated 27/05/2019 passed by the CIT(E) and directed a denovo order after considering the Supreme Court’s ruling.
The ITAT concluded that the issues regarding the applications for registration under section 12A/12AA and approval under section 80G(5) of the Income Tax Act should be reconsidered by the CIT(E) in light of the Supreme Court’s decision. The appeals were treated as partly allowed for statistical purposes.
This case underscores the importance of ensuring that decisions regarding charitable trusts’ tax exemptions and registrations consider all relevant judicial precedents and provide fair opportunities for trusts to present their cases.
Nursing Tree vs CIT (E), New Delhi – Denial of 80G and 12A Registration
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