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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 ..... re adopted by the ld. CIT(Exemption) was incorrect to grant provisional 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. Thus 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) - Appeal of the assessee is allowed. - Shri Rajpal Yadav, Vice-President (KZ) And Shri Sanjay Awast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts activities and application for regular registration has been moved beyond six months of the commencement of activities, therefore, this application is not maintainable. He accordingly rejected the application of the assessee and denied the regular registration under section 80G(5)(iii) of the Income Tax Act. He further cancelled the provisional registration granted to the assessee. 3. Dissatisfied with the decision of the ld. CIT(Exemption), the assessee is in appeal. The President of the Bar Association Shri S.K. Tulsiyan has filed a detailed written submission and also argued on behalf of the assessee. We deem it appropriate to take note of this submission, which reads as under:- The present appeal is directed against the order passed by the Ld. CIT (Exemption), Kolkata dated 21.12.2023. In this case, the appellant was duly registered u/s 12AA and also was enjoying exemption u/s 80G(5) of the Income-tax Act, 1961 (the Act) from 2019, as shall be evident from pages 01 02 of the paper book. 2. The law relating to registration of charitable institution had undergone substantial change w.e.f. 1st April, 2021 and sub-clause (i) of clause (ac) of sec.12A(1) of the Act reads as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per the requirement of sec. 80G(5) provisos (i) to (iii), i.e. six months before the date of expiry of the approval, the appellant was to make an application to the CIT seeking renewal of permanent exemption which was duly done, as shall be evident from the enclosed application in Form 10AD, which was well within time. 5. Thus, there was no delay on the part of the appellant in making the impugned application. The application should have been made within six months of the provisional registration which being mandatory. The C.I.T., however, opined that as activities of the institution had started in 2019, the concession cannot be given and hence application was rejected. Hence this appeal has been filed. 6. As shall be evident from the facts of the case that the appellant is an existing institution and its activities are part of the record before the Income-tax Department having been registered u/s 12AA much prior to the amendment w.e.f. 01.04.2021 and was enjoying registration u/s 12AA of the Act (pages 34 35 of the P/B) as well as exemption u/s 80G(5) of the Act (pages 01 02). Only due to the amendment effected by the Finance Act, 2020 w.e.f. 2021, the law u/s 12A(l)(ac) requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion was already functioning and carrying on its activities duly recognized under the old regime by grant of registration u/s 12AA and certificate u/s 80G of the Act, the period of six months of the commencement of the activities has no application to the facts of this case and, therefore, the observation of the C.I.T. of delay in submitting the application is absolutely wrong and it should be quashed. 10. The other fact which may be brought to the notice of the Hon ble Bench that as per sec. 12AB(l)(a) of the Act in case of an application which was made under sub-clause (i) of sec. 12A(l)(ac), the registration for 5 years u/s 12AB of the Act was to be granted. As per proviso to sec. 80G(5), such institution referred to in clause (vi) of sec. 80G(5) was also to be granted approval within 3 months from 1st April,, 2021. Such certificate shall not to be provisional. Therefore, the entitlement of the appellant was to get a certificate which is normal and not provisional. Therefore, the requirement as envisaged under sub-clause (iii) of proviso to sec. 80G(5) of the Act of filing a request for approval within six months from the commencement of its activities or six months prior to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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; (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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch institutions 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. 8. In the present case, at the first instance, the assessee has filed an application for grant of registration under section 80G(5)(iii). At that very time, the ld. Commissioner should have granted the regular registration instead of granting provisional. Even if the provisional registration was granted, assessee has applied for grant of regular registration, then, ld. CIT ought to have appreciated that the time limit for making such application has also been extended time to time by the CBDT. Without going into much controversy, as envisaged in the impugned order, we are of the view that time limit to make an application for grant of regular registration under section 80G(5)(iii) in Form No. 10AB is still available to the assessee upto the end of June, 2024. The assessee has already been granted registration under the old regime as noticed by us. The copy of such certificate is available on record. It is a Bar Association existing since 1924, though it has applied for gr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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