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TMI Blog2024 (5) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... onths of the receipt of this order. Appeal filed by the assessee is allowed. - Sri Rajesh Kumar, Accountant Member And Pradip Kumar Choubey, Judicial Member For the Assessee : P.K. Ray, Adv. For the Department : Abhijit Kundu, CIT D/R. ORDER PER PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER: The instant appeal filed by the assessee is directed against the order passed by ld. Commissioner of Income-tax (Exemption), Kolkata [in short ld. CIT(Exemption) ] in relation to registration applied u/s 80G of the Income Tax Act, 1961 (in brevity the Act ) dated 19.12.2023. 2. The brief fact of the case of the assessee is that the assessee is a registered Society under the Registrar of Firms, Societies Non-Trading Corporations, West Bengal and enjoyed the facility of registration u/s 12AA of the Act and approval for exemption u/s 80G(5)(vi) of the Act since the 2001-02. The assessee was granted provisional approval u/s 80G(5)(iv) of the Act in Form 10AB vide order dated 28.05.2021 for a period from 28.05.2021 to AY 2024-25. Subsequently, an application for approval of the Trust u/s 80G(5)(iii) of the Act was filed electronically. The same is filed on 01.06.2023 in form 10AB. Ld. CIT (Exemption) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (iii) where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier; (iv) in any other case, at least one month prior to commencement of the previous year relevant to the assessment year from which the said approval is sought: Provided further that the Principal Commissioner or Commissioner, on receipt of an application made under the first proviso, shall, (i) where the application is made under clause (i) of the said proviso, pass an order in writing granting it approval for a period of five years; (ii) where the application is made under clause (ii) or clause (iii) of the said proviso, (a) call for such documents or information from it or make such inquiries as he thinks necessary in order to satisfy himself about (A) the genuineness of activities of such institution or fund; and (B) the fulfilment of all the conditions laid down in clauses (i) to (v); (b) after satisfying himself about the genuineness of activities under item (A), and the fulfilment of all the conditions under item (B), of sub-clause (a), (A) pass an order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are required to apply for final registration at least six months prior to expiry of the period of provisional approval or within six months of commencement of its activities, whichever is earlier. In the case in hand, it appears that the assessee-institution instead of applying for renewal of registration under Clause (i) to First Proviso to section 80G(5) of the Act has applied for fresh provisional registration under Clause (iv) to First Proviso to section 80G(5) of the Act and incidentally, the said fresh provisional registration has also been granted to the assessee-institution from 10.03.2023 to A.Y 2025-26. If the assessee-institution would have applied for renewal of the registration under Clause (i), then its approval u/s 80G(5) would have continued without any break. The last date for making such an application was upto 30.09.2023 as per the extended date from time to time vide Circular no.6 of 2023. However, since the assessee-trust has applied for fresh approval under Clause (iv) to First Proviso to section 80G(5) of the Act, therefore, the assessee-trust was entitled to apply for final registration and there was no bar to the institution for making such application. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may apply for registration within six months of the commencement of its activities or within the six months prior to the expiry of the period of provisional approval, whichever is earlier. In any case, the assessee is eligible to apply for final registration only after the grant of provisional approval. Therefore, we hold that there is no delay on the part of the assessee in filing application in the prescribed form for grant of final registration under Clause (iii) of 1st Proviso to section 80G(5) of the Act. In view of the above observations, the matter is restored the file of the CIT(E) for decision afresh in the light of the observations made above. 5. It is to be further noted here that the ld. CIT(Exemption) firstly misconstrued about the CBDT Circulars regarding the exemption of date for final applications for approval. The said Circular/time limits are applicable only for the institutions who stood already registered on the date of Amendment and have made application for renewal of the registration without any time break. However, the said last date which has been extended to 30.09.23 by CBDT Circular No.6 of 2023 is not applicable for the institutions who have filed applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitution had already commenced its activities even prior to grant of provisional registration. Under such circumstances, the date of commencement of activity will be counted when an activity is undertaken after the grant of provisional registration either under Clause (i) or Clause (iv) to First Proviso to section 80G(5) of the Act. 7. In the case in hand, the assessee admittedly has applied for final registration after grant of provisional registration under Clause (iv) to First Proviso to section 80G(5) of the Act and therefore, the application filed by the assessee is within limitation period. The issue is otherwise squarely covered by the decision of the Coordinate Bench of the Tribunal in the case of Vivekananda Mission Asram vs. CIT (supra) and in the case of West Bengal Welfare Society vs. CIT(Exemption) (supra) and further by the decision in the case of Sri Aurobindo Bhawan Trust, Krishnagar vs. CIT(Exemption) order dated 20.02.2024 (Judicial Member herein being the author of the said orders). Therefore, the impugned order of the CIT(Exemption) is set aside and the ld. CIT(Exemption) is directed to grant provisional approval to the assessee under Clause (iii) to First Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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