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TMI Blog2024 (5) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... ther by 30.09.2022 and assessee trust was having sufficient time to convert provisional approval to regular registration and there was no necessity for this trust to apply both provisional and regular approval simultaneously. Even this amendment of 2023 by the Finance Act, 2023 is not retrospective, it is prospective. This issue is fully covered now, as the Tribunal in the case of M/s. Shri Ramajayam Charitable Trust [ 2024 (3) TMI 1201 - ITAT CHENNAI ] timeline prescribed under clause (iii) of first proviso to section 80G(5) of the Act should be treated as directory and not mandatory especially considering the transitional nature of the amendment as brought out by the taxation of other laws (relaxation and amendment of certain provisions) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in ITA No. 1005/CHNY/2023 is arising out of the order of the Commissioner of Income Tax (Exemption), Chennai rejecting Form No. 10AB dated 21.02.2023 filed for seeking approval under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961 (hereinafter the Act ) vide order dated 30.08.2023 and the appeal in ITA No. 1006/CHNY/2023 is against the provisional approval granted u/s. 80G(5)(iv) of the Act dated 24.09.2021. 2. The only issue in this appeal of assessee in ITA No. 1005/CHNY/2023 is as regards to the order of CIT(Exemption) rejecting assessee s application filed in Form No. 10AB u/s. 80G(5)(iii) of the Act dated 21.02.2023 as not maintainable. 3. Brief facts are that the assessee, M/s. Periyar Maniammai Academy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y CIT(Exemption) that since the commencement of activities was from 27.05.2021, the CIT(Exemption) sought reasons for not filing application within the due date i.e., six months from the commencement of its activities. The CIT(Exemption) accordingly rejected the assessee s application as not maintainable as beyond time. At this point, the ld.counsel for the assessee stated that this issue is no longer res-integra and covered by the decision of Coordinate Bench of this Tribunal in the case of Shri Ramajayam Charitable Trust vs. ITO in ITA No. 1136/CHNY/2023, order dated 08.03.2024. 4. At this point, the ld.Senior DR apart from the arguments made in lead case, he made new arguments that in earlier provisions of section 80G(5)(iv) of the Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trusts or institutions under both regimes and section 80G regime will again need to apply for regular registration/approval at least six months prior to expiry of period of the provisional registration/ approval or within six months of the commencement of activities, whichever is earlier. Regular registration/approval shall be valid for a period of 5 years He also brought out that the trust and institutions under both regimes are facing difficulties and to remove the same for the trust or institutions formed or incorporated during the previous year, which are not able to get the exemption for that year, in which they are formed or incorporated since they need to apply one month before the previous year for which exemption is sought, is remo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ardship faced by charitable institutions vide various CBDT circulars and finally, vide Circular No. 6/2023 dated 24.05.2023. Similarly, the timeline prescribed for filing Form No. 10A for recognition u/s. 80G of the Act was also extended up-to 30.09.2023 by the same circular for trusts filing registration under clause (i) to first proviso to section 80G(5) of the Act. But the above extension was not extended beyond 30.09.2022, unlike other forms which were extended up to 30.09.2023 to the disputed forms namely Form No. 10AB for renewal of recognition u/s. 80G(5) of the Act under clause (iii) of the first proviso to section 80G(5) of the Act. Once, the CBDT has extended the timeline for filing Form No. 10AB for recognition u/s. 12A of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l reason. We are of the view that the intention of CBDT in its circular clearly reflects their mind that once the timeline prescribed for filing Form No. 10AB for recognition u/s. 12A of the Act has been extended up to 30.09.2023, the same may be treated as extended for forms namely Form No. 10AB for renewal of approval/recognition/registration under clause (iii) of first proviso to section 80G of the Act also. Hence, we accept the plea of assessee and agree with the arguments of ld. counsel for the assessee and remand the matter back to the file of the CIT(Exemption) to decide the issue on merits. Hence, the order of CIT(Exemption) on this issue is set aside and matter is remanded back to the file of the CIT(Exemption) for re-deciding the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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