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TMI Blog2024 (6) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... n enjoying registration under section 12A of the Income Tax Act. It was also granted certificate for exemption under section 80G(5)(vi) of the Income Tax Act. The copy of the certificate is available on the record. It was issued on 13th September, 2019. With effect from 1st April, 2021 vide Taxation and Others Law (Relaxation and Amendment of Certain Provisions) Act, 2020, certain changes have been effected for grant of registration under section 12A as well as certification under section 80G(5) of the Income Tax Act. The assessee has filed an application for grant of registration under section 80G(5)(iv) of the Income Tax Act in Form No. 10AC. Such application was allowed vide order dated 23rd September, 2021 for a period from 23rd September, 2021 to A.Y. 2024-25. Thereafter the assessee filed the present application in Form No. 10AB under Rule 17A of the Income Tax Rules, 1962 for grant of regular registration under section 80G(5)(iii) of the Income Tax Act. This application of the assessee has been rejected by the ld. Commissioner. He is of the view that the time limit for grant of registration under section 80G(5)(iii), an application ought to have been moved in Form 10AB of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also and proviso was added below sec. 80G(5) which is as below : "Provided that the institution or fund referred to in clause (vi) shall make an application in the prescribed form and manner to the Principal Commissioner of Commissioner, for grant of approval, (i) Where the institution or fund is approved under clause (vi) [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020] within three months from the 1st day of April, 2021. (ii) Where the institution or fund is approved and the period of such approval is due to expire, at least six months prior to expiry of the said period; (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." 3. The appellant-institution being an existing institution is duly approved u/s 12AA of the Act and its donation enjoyed exemption u/s 80G of the Act. Due to insertion of section 12AB(l)(a) of the Act by the Taxation and Others Law (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed and he should be directed to grant exemption to the appellant institution u/s 80G(5) of the Act 8. In this case, this institution was already registered u/s 12AA of the LT. Act and made application for grant of registration within the time permitted for registration. As mandated by law, such a registration should not have been provisional but it should be duly registered from April, 2021 for a period of five years. This shall be evident from sec. 12AB(l)(a), which reads as under : "12AB. (1) The Principal Commissioner or Commissioner, on receipt of an application made under clause (ac) of sub-section (1) of section 12A, shall, - (a) Where the application is made under sub-clause(i) of the said clause, p ass an order in writing registering the trust or institution for a period of five years." Thus, there is no scope for making any provisional registration in this case. Therefore, the CIT (Exemption) has granted provisional registration mistakenly of the law and he should be directed to allow the registration for a period of five years from 2021. 9. Now coming to sec. 80G of the Act, the proviso introduced in sec. 80G(5), clause (i) reads as under: "(i) where the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, according to him also, ld. CIT(Exemption) failed to comprehend the true procedure required to be followed. It was debated before us by both the ld. Representatives that unnecessary huge litigation has been generated on account of failure of the authorities to comprehend the new Scheme. 5. The ld. Counsel for the assessee has drawn our attention towards the various decisions of this Bench on these issues. 6. We have heard the rival submissions and gone through the record. Before proceeding further, it will be relevant to reproduce here the relevant provisions of section 80G(5) of the Act: "80G(5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely:- (vi) in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being [approved by the Principal Commissioner or Commissioner;] Provided that the institution or fund referred to in clause (vi) shall make an application in the prescribed form and manner to the Principal Commissioner or Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amendment brought to section 80G of the Act by Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 have to re-apply for fresh registration under Clause (i) to the First Proviso to section 80G(5) of the Act and those institutions have to be granted provisional registration for five years by the ld. CIT(Exemption) without any enquiry. The prescribed date for final application for approval under Clause (i) to the First Proviso to section 80G(5) of the Act was stipulated as three months from 1st Day of April 2022. However, the CBDT from time to time extended the date for filing of the said application under Clause (i) to the First Proviso to section 80G(5) of the Act and finally vide Circular No.6 of 2023 dated 24.05.2023, the said date was extended upto 30.09.2023. Further, the institutions which had to apply for the first time or the institutions which did not stand approved on the date of Amendment i.e. 01.04.2021 brought by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, they could apply under Clause (iv) of the First Proviso to section 80G(5) of the Act. In that case, the ld. CIT(Exemption) is supposed to make ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisional certificate to the assessee at the first stage and then, for denying the regular certificate under section 80G(5)(iii) of the Income Tax Act. The application moved by the assessee under Form No. 10AB, Rule 17A was not time barred because the time limit considered by the ld. CIT(Exemption) in paragraph no. 11 of the impugned order as 30th September, 2022 is concerned, it has been extended from time to time. Therefore, this application is deemed to be well in time by keeping in mind the latest Circular issued by the Board. As observed earlier, the activities of the Society are similar. There is no change on such activities. Registration under section 80G(5)(vi) was granted in perpetuate vide order dated 13th March, 2019. This registration was cancelled because of change of law by the Parliament. Otherwise, there is no change in the activity of the Bar Association. Taking into consideration the past history and the complete material available before us, we deem it appropriate to allow this application and direct the ld. CIT(Exemption) to grant registration to the assessee under section 80G(5)(iii) of the Income Tax Act. The necessary certificate be issued in due course. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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