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TMI Blog2024 (9) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... d under the proviso to section 80G(5). Therefore, the ld. CIT(Exemptions) is not justified in denying the grant of approval u/s. 80G(5) to the appellant trust on the ground of delay in submission of Form No.10AB. As regards the compliance to the notices by the CIT(Exemptions), we find that in the instant case the hearing notices were sent through ITBA portal by the CIT(A). In our considered opinion, it is not a valid method and manner of service of notice as specified under the provisions of section 282(1) of the Act. Therefore, it is crystal clear that the notices were not served upon the appellant. To fortify our view, we would like to make a reference to a decision rendered in the case of Munjal BCU Centre of Innovation and Entrepreneurs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gular approval within six months from the date of provisional approval, i.e. on or before 03.10.2022, or as extended upto 30.09.2022 as per the CBDT Circular No.08/2022 dated 31.03.2022 whichever is earlier. Since the activities of the trust was already commenced as on the date of provisional approval, i.e. on 26.02.1981. The present application in Form No.10AB was filed by the appellant trust only on 29.09.2023. Therefore, the ld. CIT(Exemptions) denied the grant of approval on the grounds of delay. Further, the ld. CIT(Exemptions) observed that in the absence of compliance with the notices issued through ITBA portal on 24.11.2023, he could not reach a conclusion about the genuineness of the activities of the trust and the fulfilment of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies, whichever is earlier; The literal interpretation of clause (iii) of proviso means that in case the institution has been provisionally approved, application in the prescribed form for grant of the requisite approval u/s. 80G(5) is required to be made six months prior to expiry of the provisional approval or within six months of commencement of the activities whichever is earlier. 7. There can be two categories of institutions; (1) the institutions which had commenced the activity subsequent to the grant of provisional approval (2) the institutions which had commenced the activity much before the date of grant of provisional approval (2). No doubt, in the case of former category the literal interpretation of clause (iii) of proviso to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the above construction by the decision of Hon'ble Supreme Court in the case of K.P. Varghese Vs. ITO 131 ITR 597 (SC). 10. Adverting to the facts of the present case, undisputedly, the appellant trust commenced its actual activities on 26.02.1981 and in view of the above construction of clause (iii) of proviso to section 80G(5) the appellant trust is entitled to file the application for regular approval prior to six months of expiry of the provisional approval, i.e., on or before 03.10.2022. Therefore, it cannot be said that the application filed by the appellant trust for grant of regular approval is barred by limitation prescribed under the proviso to section 80G(5). Therefore, the ld. CIT(Exemptions) is not justified in denying the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he notice must be done in terms of the provisions as enumerated hereinabove. The provisions do not mention communication to be "presumed" by placing notice on the e-portal. A pragmatic view has to be adopted always in these circumstances. An individual or a company is not expected to keep the e-portal of the Department open all the time so as to have knowledge of what the Department is supposed to be doing with regard to the submissions of forms etc. The principles of natural justice are inherent in the income-tax provisions and the same are required to be necessarily followed. 9. Having noticed as above, this court is of the firm view that the petitioner has not been given sufficient opportunity to put up its please with regard to the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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