9911796707
TMI Blog2024 (5) TMI 1201X X X X Extracts X X X X X X X X Extracts X X X X ..... r 3 years.. HELD THAT:- It is admitted fact that the assessee is an old trust and it has already commenced its activities on 17.01.1992. It could further be noted that the assessee has already received provisional approval u/s 80G(5)(iv) for a period commencing from 21.10.2022 to AY 2025-26. It sought approval u/s 80G(5)(iii) by filing Form No. 10AB on 30.03.2023 which has been rejected by CIT(E) on the ground that the assessee had violated the mandatory time lines as statutorily provided. We find that this issue has been decided by co-ordinate bench in bunch of appeals titled as M/s CIT-1982 Charitable Trust Ors [ 2024 (3) TMI 1201 - ITAT CHENNAI] held that the extended time limit of 30.09.2023 as per CBDT Circular would apply to Form No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... file this application at least before 6 months prior to expiry of provisional approval or within 6 months from the date of commencement of its activities, whichever is earlier. The said timeline was mandatory in nature. As against this, the assessee filed application on 30.03.2023 which was much after expiry of 6 months from commencement of its activities. Accordingly, it was held by Ld. CIT(E) that the application was time barred and liable to be rejected. 3. It was further noted by Ld. CIT(E) that the assessee trust was an old trust continuing to exist much before commencement of new regime of registration effective from 01.04.2021 and therefore, it could seek registration under new regime in Form No. 10A u/s 80G(5)(i) itself under which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht approval u/s 80G(5)(iii) by filing Form No. 10AB on 30.03.2023 which has been rejected by Ld. CIT(E) on the ground that the assessee had violated the mandatory time lines as statutorily provided. However, we find that this issue has been decided by co-ordinate bench in bunch of appeals titled as M/s CIT-1982 Charitable Trust Ors, ITA No. 827/Chny/2023 order dated 08.03.2024 as under: - 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 registration u/s. 12A of the Act in the case of assessee trust has been extended up-to 30.09.2023 after considering the genuine hardship faced by charitable institutions vide various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision without bringing out 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the first respondent is declared as illegitimate, arbitrary, and ultra vires the Constitution of India; (ii) The respondents are directed to consider the applications submitted by the petitioners as to the recognition/approval in respect of clause (i) of the first proviso to sub-section (5) of section 80G of the Act as within time and consider the same and pass orders thereon on merits, in accordance with law within six months from the date of receipt of a copy of this order; Respectfully following the same, we set aside the impugned order and direct Ld. CIT(E) to consider the application on merits without raising the issue of timeline. 7. The appeal stand allowed for statistical purposes in terms of our above order. Order pronounced on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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