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2024 (3) TMI 614 - AT - Income TaxRegistration u/s. 80G(5) - Rejection of application due to delay in filling Form 10AB - as argued application was filed within six months of commencement of activities as per clause (iii) of first proviso to sub-section 5 of section 80G - HELD THAT - Tribunal has power to condone the delay. We note that application was filed by the assessee on 02.12.2022. However, as per CBDT circular No.8/2022 application in Form No.10AB, u/s. 80G(5)(iii) of the Act, should have been filed by assessee on or before 30.09.2022, hence there is delay in filing the appeal. Respectfully following the order of Co-ordinate Bench in the case of Vananchal Kelavani Trust 2024 (1) TMI 877 - ITAT SURAT we condone the delay. Therefore, we deem it fit and proper to set aside the order of the ld. CIT(E) and remit the matter back to the file of the ld. CIT(E) to adjudicate the issue, pertaining to filing in Form No.10AB, u/s. 80G(5) (ii) of the Act, afresh on merits. The assessee is also directed to file the relevant details and documents, before ld CIT(E), as and when required by ld CIT(E). For statistical purposes, the appeal of the assessee is treated as allowed.
Issues Involved:
1. Rejection of application for registration under section 80G(5) of the Income Tax Act. 2. Determination of the date of commencement of activities for the Trust. 3. Consideration of delay in filing the application and whether it can be condoned. Summary: Issue 1: Rejection of Application for Registration under Section 80G(5) The appellant's application for registration under section 80G(5) was rejected by the Commissioner of Income Tax (Exemption) [CIT(E)], Ahmedabad. The CIT(E) observed that the application, filed in Form No. 10AB, was not submitted within the prescribed time limits as per section 80G(5) of the Income Tax Act. Issue 2: Determination of Commencement of Activities The CIT(E) noted that the Trust had received donations and incurred expenses in the financial year 2021-22, indicating that the activities had commenced long before the claimed date of 07.11.2022. The appellant argued that the date of commencement should be considered as 07.11.2022, the date when a service agreement for E-Waste Management was entered into, and hence the application filed on 02.12.2022 was within six months of this commencement date. Issue 3: Consideration of Delay in Filing the Application The CIT(E) rejected the application on the grounds that it was filed after the extended deadline of 30.09.2022, as provided by CBDT Circular No. 8/2022. The appellant argued that the delay should be condoned, citing that the Tribunal has the power to do so in the interest of justice. The Tribunal noted that the issue was covered by the Co-ordinate Bench in the case of Vananchal Kelavani Trust vs. CIT(E), which allowed for condonation of delay under similar circumstances. Tribunal's Findings: 1. Rejection of Application: The Tribunal acknowledged that the CIT(E) was correct in noting the delay as per the prescribed timelines but emphasized that the Tribunal has the authority to condone such delays. 2. Commencement of Activities: The Tribunal found merit in the appellant's argument that the date of commencement could be interpreted as the date when substantial steps towards the Trust's objectives were taken, i.e., 07.11.2022. 3. Condonation of Delay: The Tribunal, following the precedent set by the Co-ordinate Bench and the judgment of the Hon'ble Delhi High Court in the case of Vishwa Jagriti Mission, condoned the delay in filing the application. The Tribunal remitted the matter back to the CIT(E) to adjudicate the issue afresh on merits, directing the CIT(E) to consider the application as filed within the statutory time limit. Conclusion: The Tribunal set aside the order of the CIT(E) and remitted the matter back for fresh adjudication, allowing the appeal for statistical purposes. The Tribunal emphasized that the delay in filing the application should be condoned in the interest of justice, and the CIT(E) should verify the eligibility of the Trust as per the Act.
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