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2024 (6) TMI 924 - AT - Income TaxIssues Involved: 1. Rejection of application for registration u/s 80G. 2. Interpretation of proviso to Section 80G(5). 3. Misreading provisions of Section 80G. 4. Ignoring provisional registration granted earlier. 5. Direction to grant Certificate u/s 80G. Summary: 1. Rejection of Application for Registration u/s 80G: The appeal by the assessee is against the order of the CIT(E) dated 11/08/2023, which rejected the application for approval u/s 80G(5)(iii) for AY 2023-24. The assessee, a Trust set up in 1953, obtained registration u/s 12A in 1977. After the insertion of new provisions for registration u/s 12AB and approval u/s 80G(5), the assessee applied for provisional approval u/s 80G(5), granted on 16/12/2022. The final application was made on 02/02/2023. The CIT(E) issued a show cause notice and subsequently rejected the application, stating it was not filed within the prescribed time limit. 2. Interpretation of Proviso to Section 80G(5): The CIT(E) held that the application should have been filed on or before 30/09/2022, which the assessee failed to do. The Tribunal noted that the Jodhpur Bench, in a similar case, interpreted that the clause "within six months of commencement of its activities" applies to trusts that have not started charitable activities at the time of obtaining provisional registration. For existing trusts, the time limit for applying for regular registration is within six months of the expiry of provisional registration. 3. Misreading Provisions of Section 80G: The Tribunal found that the CIT(E) misinterpreted the provisions by not considering the extension provided by CBDT Circular No. 6/23 dated 24/05/2023, which extended the due date to 30/09/2023. The Tribunal emphasized that the intention of the legislation was to facilitate and simplify the registration process for charitable institutions. 4. Ignoring Provisional Registration Granted Earlier: The Tribunal noted that the assessee had been granted provisional approval valid up to AY 2025-26. The CIT(E) did not mention any specific violations by the assessee that would warrant the cancellation of this provisional approval. 5. Direction to Grant Certificate u/s 80G: The Tribunal directed the CIT(E) to reconsider the application afresh, following the decision of the Jodhpur Bench in the case of Bhamashah Sundarlal Daga Charitable Trust Vs CIT(E). The CIT(E) is to pass a new order in accordance with the law, granting a reasonable opportunity of hearing to the assessee, who may file additional submissions. Conclusion: The appeal of the assessee is allowed for statistical purposes. The matter is restored to the file of the CIT(E) for fresh consideration in light of the Tribunal's observations and the Jodhpur Bench's decision. The order was announced in open court on 11th January 2024.
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