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TMI BlogNavigating the Registration Process u/s 80G: Insights from the ITAT RulingX X X X Extracts X X X X X X X X Extracts X X X X ..... t had applied for final approval u/s 80G(5)(iii) of the Act after obtaining provisional approval u/s 80G(5)(iv). However, the Commissioner of Income Tax (Exemption) [CIT(E)] rejected the application for final approval, citing that the assessee had already commenced its activities long before obtaining provisional registration, and the time limit prescribed for applying for final approval had expired. The assessee contended that the CIT(E) had misconstrued the provisions of Section 80G(5) and the relevant circulars issued by the Central Board of Direct Taxes (CBDT). The assessee argued that once provisional approval was granted, the institution was eligible to apply for final registration, irrespective of whether it had commenced activities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redundant and defeat their purpose. Analysis and Decision by the Court The ITAT allowed the assessee's appeal and set aside the order of the CIT(E). The ITAT directed the CIT(E) to grant final approval to the assessee under Clause (iii) of the First Proviso to Section 80G(5), provided the assessee meets the eligibility criteria. The ITAT also instructed the CIT(A) to decide on the application for final registration within three months of receiving a copy of the order. Doctrine or Legal Principle Discussed The judgment primarily revolves around the interpretation of the provisions of Section 80G(5) and the First Proviso, particularly concerning the time limits and procedures for obtaining provisional and final approval for claiming tax e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the grant of provisional approval under Clause (i) or Clause (iv). The CBDT circulars extending the time limit are applicable only for applications under Clause (i) and do not curtail the limitation period for applying for final registration under Clause (iii). Rejecting an application for final registration on the grounds that the institution had commenced activities before obtaining provisional approval would render the relevant provisions of Section 80G(5) redundant. The ITAT's judgment aims to provide clarity and ensure a consistent interpretation of the provisions related to Section 80G registration, thereby facilitating the registration process for eligible charitable institutions. Full Text : 2024 (3) TMI 941 - ITAT KOLKATA - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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