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TMI Blog2024 (7) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... from the records is that the assessee filed online application in Form No. 10AB seeking approval u/s 80G of the Income Tax Act, 1961. The notices were issued in response to that application filed by the assessee. While examining the details and application of the assessee for registration u/s 80G of the Act, the ld. CIT(A) noted that the assessee commenced its activities from 10.02.2022 and filed form 10AB on 02.09.2023 i.e. after delay of six months from commencement of its activities. Since the assessee required to file an application in Form No. 10AB u/s clause (iii) of first proviso to sub-section (5) of sec. 80G of the Act within the time period of at least six months prior to expiry of period of the provisional approval or within six months of commencements of its activities, whichever is earlier. He further noted that the time limit prescribed under sub-section 5 of section 80G of the Act for filing form 10A and 10AB, mandatory. But considering the hardship of the stake holder, the same was extended till September, 2022 and since the application filed by the assessee is dated 02.09.2023, the same is not coming in the limit of 6 months or extended period by CBDT and therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tute 139 Taxman.com 121. Submission:- 5. Section 80G allows deduction to an assessee in computing his total income in respect of donation paid to any fund or institution. However, under subsection 5, the deduction is allowable only if such fund or institution is established in India for charitable purpose and it fulfills the following conditions:- (i) The income of the fund or institution is exempt u/s 11 & 12. (ii) No part of income or asset of the fund or institution is used for any purpose other than a charitable purpose. (iii) The fund or institution is not for the benefit of any particular religious community or caste. (iv) It maintains regular accounts of its receipt & expenditure. (v) It is constituted as a public charitable trust or registered under Societies Registration Act, 1860 or u/s 8 of Companies Act, 2013. (vi) It is approved by the Commissioner. (vii) It prepares & delivers the statement of donation to the prescribed authorities. (viii) It furnishes to the donor a certificate specifying the amount of donation received. (ix) The assessee has satisfied all the conditions mentioned above. It is provisionally approved under clause (vi) of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted as valid reason to recall an order. Difference lies in the nature of mistake and scope of rectification, depending on if it is of fact or law. But the root from which the power flows is the anxiety to avoid injustice. It is either statutory or inherent. The latter is available where the mistake is of the Court. In Administrative Law the scope is still wider. Technicalities apart if the Court is satisfied of the injustice, then it is its constitutional and legal obligation to set it right by recalling its order." 8. In a case similar to the present one, the Hon'ble Income Tax Appellate Tribunal, Jaipur Bench, addressed the issue of a delay in filing an application for permanent registration under section 80G(5)(vi) in the case of Go Gram Eco Foundation vs. CIT(E) [ITA No. 504/JP/2023]. The appeal questioned whether the application should be rejected solely due to a delay and whether the CIT(E) has the authority to condone such a delay. The Tribunal observed that while section 10(23C)(vi) specifically lacks provisions to condone delays, section 80G(5) does not explicitly deny this power. Thus, it was argued that the CIT(E) inherently possesses the power to condone delays unles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ejecting the application in toto. 12. It is submitted that Hon'ble Supreme Court in case of CIT Vs. Lok Sewa Sansthan Samiti 105 Taxmann.com 203 (copy enclosed) has dismissed the SILP filed by the revenue against the decision of Hon'ble Allahabad High Court where it was held that where the assessee stands registered as a charitable institution u/s 12A of the Act, the natural corollary is that its application under section 80G(5) of the Act also becomes liable to be allowed. In the present case also when the assessee has been granted permanent registration u/s 12A(1)(ac)(iii) on 29.06.2023 in pursuance to the application filed on 16.12.2022, the permanent registration u/s 80G(5) should also be allowed in pursuance to the application filed on same date. 13. Without prejudice to above, it is submitted that clause (iv) of the proviso to section 80G(5) has been substituted by FA, 2023 w.e.f. 01.10.2023 to provide that application can be made at any time after the commencement of the activities where the activities of the institution or funds have commenced and no income or part thereof has been excluded from the total income u/s 11 or 12 for any PY ending on or before the da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporate Affairs 18 4 Copy of License u/s 8 issued by Registrar of Companies 19 5 Copy of audited Financial statements for FY 2022-23 20-32 6 Copy of Acnknowledgement of return filed for AY 2023-24 33 7 Copy of Computation of Income for AY 2023-24 34-35 8 Copy of Provisional Registration u/s 80G(5) of the Act in Form 10AC dated 08/03/2023 36-37 9 Copy of Application for Registration filed Form 10AB dated 02/09/2023 38-44 10 Copy of Notices dated 07/12/23,12/12/23,23/01/24&02/02/24 issued by the CIT(Exemption),Jaipur u/s 80G of the Act 45-50 11 Copy of Acknowledgement of Reply dated 05/02/2024 51-52 6. The ld. AR of the assessee in addition to what has been stated in the written submission, he argued that the recently, the time limit for filing u/s 80G application which was last extended up to 30.09.2023 that extension was given again for filing the application till 30.06.2024. Therefore, considering that circular No. 7/2024 dated 25th April 2024 the assessee should not be deprived of benefit on that aspect of the matter. 7. Per contra, the ld. DR relied upon the order of ld. CIT(E) but at the same time, he did not object to the prayer of the assessee fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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