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2024 (6) TMI 931 - AT - Income TaxRejecting the application for final Registration u/s. 80G(5)(iii) in Form No.10AB belatedly on 23.11.2022 - HELD THAT - It is undisputed fact that the Trust was created on 06-05-2011 and Final registration u/s. 12AB was granted to the assessee Trust. Similarly, Provisional registration u/s. 80G was granted on 11-02-2022. However, the assessee failed to File final registration under 80G(5) within six months period but filed on 23-11-2022 is barred by limitation and treated the Application as not maintainable. Circular No. 6 of 2023 dated 24-05-2023 was not considered by Ld CIT E while rejecting Final registration u/s.80G of the Act vide order dated 28-05-2023. This Circular clarified that even in case, where the application in Form No. 10AB was rejected by the CIT(E) on or before issuance of this circular dated 24-05-2023, the assessee trust can make fresh application in Form 10AB on or before 30-09-2023. Thus, the ld. CIT(E) has not considered the clause 7 of the Circular No.6 of 2023 thereby rejected the application, which is in our considered view is against the circular issued by the CBDT. We hereby set aside the impugned order passed by CIT(E) with a direction to reconsider the From No.10AB for Final Registration u/s. 80G of the Act by giving proper opportunity of being heard to the assessee trust. Needless to say the assessee trust should co- operate by furnishing all the 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.
Issues involved:
The rejection of Final Registration u/s 80G(5) of the Income Tax Act, 1961 due to belated filing of Form No.10AB. Summary: Issue 1: Rejection of Final Registration u/s 80G(5) The appeal was filed against the rejection order dated 28.05.2023 by the Commissioner of Income Tax (Exemption), Ahmedabad, denying Final Registration u/s 80G(5) of the Act. The rejection was based on the belated filing of the application in Form No.10AB on 23.11.2022, which was after the extended due date of 30/09/2022 as per CBDT circular No.8/2022. The applicant failed to file within the prescribed time limit, leading to the rejection of the application. Issue 2: Grounds of Appeal The appellant raised three grounds of appeal against the rejection order. Firstly, challenging the order as incorrect and illegal, secondly, arguing that the application was not required due to a lack of knowledge, and lastly, contending that the order passed was bad in law and contrary to provisions. Issue 3: Tribunal Decision The Tribunal considered the facts and submissions, noting that the Trust was created on 06-05-2011 and had been granted Final registration u/s. 12AB and Provisional registration u/s. 80G. However, the failure to file the final registration under 80G(5) within the stipulated period rendered the application not maintainable. The Tribunal referred to a similar case where the rejection order was set aside, emphasizing the CBDT circular extending the time limit up to 30-09-2023. The Tribunal found that the Circular was not considered by the CIT(E) while rejecting the registration, leading to the decision to set aside the order and direct a reconsideration of Form No.10AB for Final Registration u/s. 80G of the Act. The Tribunal emphasized the importance of complying with the law and providing all necessary details for the registration process. Conclusion The appeal filed by the assessee was allowed for statistical purposes, with the Tribunal setting aside the rejection order and directing a reconsideration of the application for Final Registration u/s. 80G of the Act in accordance with the CBDT Circular and providing the necessary details as required by law.
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