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2024 (1) TMI 1448 - AT - Income TaxDenial of final registration u/s. 80G(5) - application was filed beyond the limitation period prescribed under the Act and also extended period of limitation granted by CBDT by various circulars issued from time to time - HELD THAT - As per Surat Bench of this Tribunal in 2024 (1) TMI 877 - ITAT SURAT we hereby set aside the impugned order passed by Ld. CIT(E) with a direction to reconsider Form 10AB for final registration u/s. 80G of the Act by giving proper opportunity of being heard to the assessee Trust and also restore the provisional registration already granted to the assessee. Assessee Trust should co-operate by furnishing all required details as mandated under the law for granting final registration u/s. 80G of the Act. Appeal filed by the Assessee is allowed for statistical purpose.
1. ISSUES PRESENTED and CONSIDERED
The core legal issues considered in this judgment are:
2. ISSUE-WISE DETAILED ANALYSIS Relevant Legal Framework and Precedents: The provisions of Section 80G(5) of the Income Tax Act, 1961, and related CBDT circulars were central to the case. The Act prescribes a strict timeline for filing applications for final registration, which was extended by the CBDT through circulars. The Tribunal considered precedents where similar issues were adjudicated, such as the cases of Best Buds Pet Care and Bhamashah Sundarlal Daga Charitable Trust. Court's Interpretation and Reasoning: The Tribunal interpreted the provisions of Section 80G(5)(iii) and the relevant CBDT circulars, particularly Circular No. 6/2023, which extended the deadline for filing applications until 30.09.2023. The Tribunal found that the CIT(E) failed to consider Clause 7 of the circular, which allows for the acceptance of applications filed beyond the initial deadline but before the extended deadline. Key Evidence and Findings: The Tribunal noted that the assessee Trust filed its application on 23.02.2023, which was within the extended deadline as per Circular No. 6/2023. The Tribunal highlighted that the CIT(E) did not take into account the provisions of the circular that allowed for such filings. Application of Law to Facts: The Tribunal applied the extended deadline provided by the CBDT circulars to the facts of the case, determining that the application was filed within the permissible timeframe. The Tribunal emphasized the importance of considering the circulars' provisions to avoid undue hardship to the assessee. Treatment of Competing Arguments: The Tribunal evaluated the arguments from both the assessee and the Revenue. The Revenue argued for strict adherence to the timelines, while the assessee contended that the application was filed in good faith based on the extended deadline. The Tribunal favored the assessee's interpretation, citing the circulars and prior judicial precedents. Conclusions: The Tribunal concluded that the CIT(E) erred in rejecting the application based on the delay, as the application was filed within the extended deadline. The Tribunal set aside the CIT(E)'s order and directed reconsideration of the application for final registration under Section 80G(5). 3. SIGNIFICANT HOLDINGS Preserve Verbatim Quotes of Crucial Legal Reasoning: "The Tribunal is a final fact-finding authority, and based on the assessee's facts and undue hardship created by the clause (iii) of 3rd proviso of section 80G(5) of the Act, the Tribunal may condone the delay in filing the Form No.10AB, u/s 80G(5) of the Act." Core Principles Established:
Final Determinations on Each Issue:
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