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2024 (5) TMI 216 - AT - Income TaxGrant of approval u/s 80G(5) - Delay in filing From No. 10AB for approval - final approval to be filled within a period of six months from date of grant of provisional registration - distinction / different timeline for accepting application for grant of final approval in respect of grant of registration in Form No. 10AB for registration u/s 12AB - as per CIT(E) as applicant was required to file application in Form No. 10AB on or before 30.09.2022, which it failed to submit and as the date of commencement of activities in the case of the assessee should also be six months prior to the date of filing of From 10AB - HELD THAT - As decided in Chennai ITAT in the case of Periyar Maniammai Academy of Higher Education and Research 2024 (5) TMI 184 - ITAT CHENNAI while passing the order the Chennai Tribunal has held that where timeline for filing Form 10AB under section 12A was extended due to genuine hardship faced by charitable institutions that extension should apply to renewal form under section 80G(5)(iii) as well and application for renewal could not be rejected solely on basis of late filing. Since in the instant facts, as it evident from the various dates mentioned above, the assessee / Applicant Trust had filed application for grant of final approval under Section 80G(5) of the Act within a period of six months from date of grant of provisional registration on 06.04.2023 (whereas date of grant of provisional approval u/s 80G(5) of the Act was 30.03.2023 and as noted by us in the preceding paragraph, the assessee could have filed application for grant of approval on or before 30.09.2023 which stands further extended to 30.06.2024 vide Circular No. 7/2024 dated 25.04.2024) i.e. within a period of six months from date of grant of provisional registration, further coupled with the fact that the Ld. CIT(E) on analysis from same set of facts had granted final approval to the assessee / Applicant Trust under Section 12AB of the Act vide order dated 04.11.2023, then, in our considered view, there is no substantive reason as to why the assessee should not be granted final registration under Section 80G(5) of the Act as well. Assessee appeal allowed.
Issues Involved:
1. Refusal to grant approval u/s 80G(5) of the Income Tax Act, 1961. 2. Interpretation of timelines for filing Form 10AB for approval under Section 80G(5). Summary: Issue 1: Refusal to Grant Approval u/s 80G(5) The Assessee appealed against the Ld. Commissioner of Income Tax (Exemptions), Ahmedabad's order refusing approval u/s 80G(5). The Assessee Trust, incorporated on 01.05.2007, applied for final approval under Section 80G(5)(iii) in Form No. 10AB on 06.05.2023, after receiving provisional approval on 06.04.2023. The CIT(E) rejected the application, stating it was filed beyond the prescribed timeline of 30.09.2022, as per Circular No. 8/2022 and Circular No. 6/2023. The CIT(E) assumed the date of commencement of activities as the date of incorporation, thus requiring the application to be filed by 30.09.2022. Issue 2: Interpretation of Timelines for Filing Form 10AB The Tribunal examined whether the timeline for filing Form 10AB for approval under Section 80G(5) could be extended similarly to the timeline for Section 12AB registrations. The Tribunal referenced the ITAT ruling in the case of Adani Education Foundation, which held that there should be no distinction in timelines for filing applications under Section 12AB and Section 80G(5). The Tribunal also cited other cases, including the Chennai ITAT's decision in Periyar Maniammai Academy of Higher Education and Research, which supported the extension of timelines due to genuine hardships faced in electronic filings. Conclusion: The Tribunal concluded that the Assessee Trust, having filed the application within six months of receiving provisional approval, should be granted final registration under Section 80G(5). The Tribunal set aside the CIT(E)'s order and remanded the matter for re-evaluation on merits, considering the extended timelines and the consistency in granting approvals under similar circumstances. The appeal was allowed for statistical purposes, and the Assessee was deemed eligible for final registration under Section 80G(5). Order Pronounced: The order was pronounced in Open Court on 30/04/2024.
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