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TMI Blog2024 (5) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned, was not extended beyond the period of 30.09.2022. Accordingly, in view of the aforesaid Circular, the last date of filing From No. 10AB for approval under Section 80G(5)(iii) of the Act was 30.09.2022. However, in this case, the applicant had been granted order for provisional approval in Form No. 10AC under Section 80G(5)(iv) on 06.04.2023 and the applicant filed Form No. 10AB under Section 80G(5) of the Act on 06.05.2023. Accordingly, in view of the above facts, CIT(E) observed that in view of the above provisions the applicant was required to file application in Form No. 10AB on or before 30.09.2022, which it failed to submit. Further, the CIT(E) was also of the view that 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. Accordingly, Ld. CIT(E) rejected the application of the assessee for grant of approval with the following observations:- 7. In the absence of any details filed by the applicant in this case date of commencement is assumed to be date of incorporation/creation/registration i.e. 01/05/2007. In view of discussion in Para 3 and Para 4 above, the applicant was required to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Further, the Counsel for the assessee also submitted that on identical set of facts, vide order dated 04.11.2023, the assessee / Applicant Trust had been granted final approval under Section 12AB of the Act and therefore, there is no reason as to why on identical set of facts, the grant of final registration under Section 80G(5) of the Act should be rejected. 5. In response, the Ld. D.R. submitted that the assessee / Applicant Trust was issued several notices, and in absence of any details filed by the applicant, the date of commencement is assumed to be the date of incorporation i.e. 01.05.2007 and the applicant was required to file application in Form No. 10AB on or before on 30.09.2022 in terms of Circular No. 8/2022 dated 31.03.2022 which had extended the time for making application in Form 10AB under Section 80G(5)(iii) of the Act to 30.09.2022. Since the Applicant Trust had filed application for grant of registration beyond the stipulated time, there is no error in the order of CIT(E) denying the grant of registration to the Applicant Trust. 6. We have heard the rival contentions and perused the material on record. 7. In the instant case we observe that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nors, 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 registration/approval/notification before actually starting the activities. To make the process of registration completely electronic under a 16 digit Unique Registration Number (URN), the new regime was introduced for new as well as to existing charitable institutions. Due to change in law, a new clause (ac) has been inserted in sub-section (1) of section 12A w.e.f. 01.04.2021 which states that notwithstanding anything contained in clauses (a) to (ab), the person in receipt of the income who wants to claim benefit of section 11 12 is to made an application in the prescribed form 10A or 10AB and in prescribed manner to the Principal Commissioner or Commissioner, for registration of the Trust or institution. 7.3 Similarly, for ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 by assessee only on 17.03.2023, which is belated application. There is no dispute about the final registration granted to the assessee Trust u/s. 12A of the Act in Form No.10AD under the new regime vide order dated 13.09.2023 but rejected assessee s application filed in Form No.10AB u/s. 80G of the Act dated 17.03.2023 vide order dated 25.09.2023 as the application is a belated one. 7.5 We have considered the case laws of Co-ordinate Bench of Jaipur Tribunal in the case of Go Gram Eco Foundation, supra and noted that the Jaipur Bench has considered this issue of delay in application filed in Form No.10AB in term of clause (iii) of first proviso to section 80G(5) of the Act, wherein the provisional registration was granted to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 new regime of taxation of charitable Trusts / institutions started w.e.f. 01.04.2021 and hence, reliance placed by Revenue on the Co-ordinate Bench decision of Kolkata Tribunal in the case of Bishnupur Public Education Institute, supra is not at all relevant and even the case law of Hon ble High Court of Madras and the Hon ble High Court of Andhra Pradesh are also relating to taxation of old regime prior to 01.04.2021. Hence, these are clearly distinguishable on facts and hence, not applicable. In term of the above, we now go through the factual aspect. 7.8 After hearing the arguments of ld. counsel for the assessee and ld. CIT-DR as noted above, we find from the facts that the timeline prescribed for filing Form No.10AB for r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 issue on merits as per law. The appeal of the assessee is allowed for statistical purposes. 9. Now coming to the instant facts, we observe that the assessee had filed Form 10AB for grant of final registration under Section 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 under Section 12A of the Act in Form 10AB i.e. 30.09.2023. Accordingly, in light of the aforesaid Ruling, the order of CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first proviso to section 80G(5), application for final approval under clause (iii) to first proviso to section 80G(5) could not be rejected on ground that institution had already commenced its activities even prior to grant of provisional registration. 11. In the case of Anudip Foundation for Social Welfare vs. CIT(E) 160 taxmann.com 624 (Kolkata Tribunal) , the Tribunal has held that where assessee had been granted provisional approval under clause (iv) to first to section 80G(5), application nor final approval under clause (iii) to first proviso to section 80G(5) could not be rejected on ground that institution had already commenced its activities even prior to grant of provisional registration. 12. Further, we also observe that very recently vide Circular No. 7/2024 dated 25.04.2024 CBDT has further extended the due date of filing Form No. 10A/10AB under the Income Tax Act till 30.06.2024, taking into consideration the difficulties reiterated by tax payers electronic filing of 10A/10AB. It would be useful to reproduce the Circular for ready reference:- Circular No. 7/2024 F. No. 173/25/2024-ITA-I Government of India Ministry of Finance Department of Revenue Central Board of Dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... institution or fund has already made an application in Form No.10AB under the said provisions on or before the issuance of this Circular, and where the Principal Commissioner or Commissioner has not passed an order before the issuance of this Circular, the pending application in Form No. 10AB may be treated as a valid application. 4.1 Further, in cases where any trust, institution or fund has already made an application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish a fresh application in Form No. 10AB within the extended time provided in paragraph 3(ii) i.e. 30.06.2024. 5. It is also clarified that if any existing trust, institution or fund who had failed to file Form No. 10A for A Y 2022-23 within the due date as extended by the CBDT circular no. 6/2023 dated 24.05.2023 and subsequently, applied for provisional registration as a new trust, institution or fund and has received Form No. 10AC, it ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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