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TMI Blog2024 (5) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... iled Form 10AB for grant of final registration u/s 80G of the Act on 04.02.2023 i.e. within the extended time-line provide vide CBDT Circular with respect for final registration of Trust u/s 12A of the Act in Form 10AB i.e. 30.09.2023. Accordingly, in light of the aforesaid Ruling, the order of CIT(Exemptions) on this issue is set aside, and matter is remanded to the file of CIT(Exemption) for re-deciding the issue of grant of final registration u/s 80G(5), on merits, as per law. Appeal of the assessee is allowed for statistical purposes. - SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER For the Appellant : Shri Bandish Soparkar Shri Parin Shah, A.Rs. For the Respondent : Fr. Darsi Suman Ratnam, CIT D.R. ORDER PER SIDDHARTHA NAUTIYAL, JM: Both the appeals have been filed by the Assessee against the orders passed by the Ld. Commissioner of Income Tax (Exemption), (in short Ld. CIT(E) ), Ahmedabad vide orders dated 29.08.2023. Since common facts and issues are involved for both the years under consideration, both appeals are being taken up together. 2. The assessee has raised the following grounds of appeal:- ITA No. 859/Ahd/2023 1. In law and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the provisional approval (quoted). 6. The appellant craves leave to add, amend, and alter any or withdraw any grounds of appeal at or before the time of appeal hearing. ITA No. 860/Ahd/2023 1. In law and in the facts and circumstances of the appellant's case, the impugned order rejecting the application made under Section 80G (5) of the Income Tax Act, 1961 is bad in law and deserves to be cancelled. 2. In law and in the facts and circumstances of the appellant's case, CIT(EXEMPTION) has erred in rejecting the application for final registration on the ground that the said application is belatedly filled without considering genuine hardship faced in filling Form 10AB which is also an admitted position in the CBDT circular dated 24 May, 2023. 3. In law and in the facts and circumstances of the appellant's case, the Ld. CIT (EXEMPTION) erred in drawing a conclusion that application filled under Section 80 G for final registration is beyond time limit prescribed under the referred Section without considering the effect of provisions of sub-Clause (iii) to first proviso of sub-Clause (5) to Section 80 G of the Act under which the only effective condition which is applicabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Form No. 10AB. The CBDT on multiple occasions had extended the time limit in filing the application in Form 10AB and vide Circular No. 6/2003 dated 25.05.2023, the date was not extended so far as filing of form 10AB under Section 80G(5)(iii) of Income Tax Act, 1961 is concerned beyond 30.09.2022. The applicant has filed Form 10AB, under Section 80G(5) of the Act on 04/02/2023. The applicant had been granted order for provisional approval in Form No. 10AC issued on 23.11.2021 for the period commencing from 23.11.2021 to A.Y. 2024-25. The Ld. CIT(E) observed that applicant had submitted that the date of commencement of activities was 08.12.2021. In view of the above, the applicant was required to file application in Form 10AB in this case on or before 30.09.2022, which it had failed to submit. The applicant has also not filed any request before appropriate authority for delay condonation under Section 119(2)(b) of I.T. Act, 1961. Therefore, the as per the CIT(E), the application in Form No. 10AB under Section 80G(5) of the Act has not been filed within the time limit prescribed therein and therefore, the same is liable to be rejected as such, as non-maintainable. 4. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n various judicial precedents which have been rendered in the past on the instant subject. The ITAT, in our considered view has correctly observed that there is no reason to provide for a distinction within the same provision, so as to have a different timeline for accepting application for grant of final approval in respect for grant of registration in Form No. 10AB for registration under Section 12A of the Act and for grant of final registration under Section 80G(5) of the Act. The ITAT, in our view has correctly observed that there cannot be a distinction within the same provision for having different time-lines, without bringing out any exception and further, even the provisions of Section 80G are for the benefit of the donors, who are donating money to the charitable trust for claiming exemption in their returns of income. It would be useful to reproduce their relevant extracts of the Ruling for reference: 7.2 The legislature by way of amendment introduced new regime for taxation of trusts w.e.f. 01.04.2021 and this amendment was made with the objective that it needs improvement with the advent of technology and keeping in mind the practical issue of difficulty in obtaining re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rst proviso to section 80G(5) of the Act. But, the CBDT time and again considering the difficulties in filing in the electronic mode of filing of Form No. 10A or 10AB, in exercise of powers conferred upon it u/s.119 of the Act, extended the due date for filing Form No. 10A or 10AB up to 30.09.2022 vide Circular No. 16/2021 dated 29.08.2021 and further, vide Circular No. 6/2023 dated 24.05.2023 up to 30.09.2023. But the CBDT has extended this date up to 30.09.2023 in filing Form No. 10A for registration u/s.12A of the Act vide paras 6 to 8 of the Circular (which is reproduced in this order at para 7.1 above). The Revenue has filed the date and events which are undisputed in this case and as admitted by Revenue that in this case, provisional registration was granted u/s.80G(5) of the Act in Form No. 10A under the new regime under clause (iv) of the said provision vide dated 23.09.2021. Even the final registration was granted u/s.12A of the Act in Form No. 10AD under the new regime vide dated 13.09.2023 but rejected the application for final approval applied u/s.80G of the Act in Form No. 10AB vide order dated 25.09.2023 by CIT(Exemption) on the reason that the application was filed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has also got approval u/s.12A(1)(ac) of the Act from A.Y. 2022-23 to A.Y. 2026-27 and assessee filed application in Form No. 10AB for approval u/s.80G(5) of the Act on 11.01.2023, which was treated as belated application and appropriate authority rejected the approval application filed by the assessee. But the Tribunal allowed the maintainability of application and directed the CIT(Exemption) to re-decide on merits. Hence, these decisions favors the case of the assessee and clearly applicable to the facts of present case before us. 7.7 The case law cited by the Revenue of Kolkata Tribunal in the case of Bishnupur Public Education Institute, supra wherein the Kolkata Tribunal has relied on the decision of Hon ble High court of Madras in the case of All Angels Educational Society, supra and the Hon ble High Court of Andhra Pradesh in the case of Aurora Educational Society vs. CCIT reported in 20 taxmann.com 46, after considering these decisions has decided the issue on the approval of application filed u/s.10(23C)(vi) of the Act rejected by CIT(Exemption) relating to assessment years 2016-17, 2017-18 2018-19. The assessee s application was dated 11.02.2019 under the old regime. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any exception and even this provision is for the benefit of the donors who are donating money to the charitable trusts for claiming exemption in their returns of income. In our view, we agree with the argument of ld. counsel for the assessee that the 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) act 2020 for bringing new regime. Hence, in our view, the CIT(Exemptions) should not have rejected the assessee s application in Form No. 10AB only for this technical 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. cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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