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TMI Blog2024 (9) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act could not be denied only on the ground that the same was not filed before 30-09-2023. Appeal of the assessee is allowed for statistical purposes. - Shri Siddhartha Nautiyal, Judicial Member And Shri Makarand V. Mahadeokar, Accountant Member For the Assessee :Shri Pratik Pala, A.R. For the Revenue :Shri Sudhendu Das, CIT-D.R. ORDER PER : SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER:- This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemptions), (in short Ld. CIT(E) ), Ahmedabad vide order 08-01-2024. 2. The Assessee has taken the following grounds of appeal:- 1. The CIT (Exemption) erred in rejecting the application filed by the assessee in Form 10AB u/s 80G (5) of the Act by treating the said application as non-maintainable on the ground that the same was not filed within the time limit prescribed under the clause (iii) of the fist proviso to Sec. 80(5) of the Act. 2. The CIT (Exemption) erred in rejecting the application filed by the assessee in Form 10AB u/s 80G (5) of the Act without going into merits and also in cancelling the provisional approval granted to assessee in Form 10AC u/s 80G(5)(iv) of the Act. Relief claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04.2021. The assessee Trust filed application for grant of final approval under Section 80G of the Act on 02.08.2023 and the assessee / Applicant Trust had earlier been granted provisional approval on 24.09.2021. The said application filed by the assessee / Applicant Trust was rejected on 08.01.2024. Accordingly, the Counsel for the assessee submitted that on a reasonable interpretation, there is no reason to provide for a distinction / different timeline for accepting application for grant of final approval in respect of grant of registration in Form No. 10AB for registration under Section 12AB of the Act and for grant of final registration under Section 80G(5) of the Act. Further, he relied on the Circular No. 7/2024 dated 25.04.2024 vide which the CBDT has further extended the due date of filing Form No. 10A/10AB under the Income Tax Act till 30.06.2024, taking into consideration the difficulties reiterated by tax payers electronic filing of 10A/10AB. Accordingly, it was submitted the Ld. CIT(E) erred in facts and in law in not granting registration / refusing to grant final registration under Section 80G(5) of the Act. 5. In response, the Ld. D.R. submitted that since the Appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced for new as well as to existing charitable institutions. Due to change in law, a new clause (ac) has been inserted in sub-section (1) of section 12A w.e.f. 01.04.2021 which states that notwithstanding anything contained in clauses (a) to (ab), the person in receipt of the income who wants to claim benefit of section 11 12 is to made an application in the prescribed form 10A or 10AB and in prescribed manner to the Principal Commissioner or Commissioner, for registration of the Trust or institution. 7.3 Similarly, for approval u/s.80G of the Act, similar changes were effected in the provisions of section 80G (5), the first and second provisos, which were made applicable with effect from 01.04.2021 for existing Trusts as well as new Trusts or entities. This amendment is brought in by Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 amended the provisions related to application by a Trust for registration or approval by amending the first and second proviso to clause (23C) of section 10, clause (ac) of sub-section (1) of section 12A of the Act, inserting section 12AB of the Act and amending the first and second proviso to sub-section (5) of sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 13.09.2023 but rejected assessee s application filed in Form No.10AB u/s.80G of the Act dated 17.03.2023 vide order dated 25.09.2023 as the application is a belated one. 7.5 We have considered the case laws of Co-ordinate Bench of Jaipur Tribunal in the case of Go Gram Eco Foundation, supra and noted that the Jaipur Bench has considered this issue of delay in application filed in Form No.10AB in term of clause (iii) of first proviso to section 80G(5) of the Act, where in the provisional registration was granted to the assessee Trust on 16.10.2021 in Form No.10A u/s.12A(1)(ac)(vi) and under clause (iv) of first proviso to section 80G(5) of the Act. In that case, the provisional registration was granted in form No.10AC on 27.10.2021. Admitted fact in the case is that the assessee Trust commenced its activities from 13.10.2021 being new Trust and assessee filed application for grant of approval under clause (iii) of first proviso to section 80G (5) on 16.12.2022, which is delayed by almost about 2.5 months from the extended date. The Tribunal considered this issue and finally in para 6.1 noted and the relevant reads as under:- There is no dispute as to the fact that assessee is pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation Institute, supra is not at all relevant and even the case law of Hon ble High Court of Madras and the Hon ble High Court of Andhra Pradesh are also relating to taxation of old regime prior to 01.04.2021. Hence, these are clearly distinguishable on facts and hence, not applicable. In term of the above, we now go through the factual aspect. 7.8 After hearing the arguments of ld. counsel for the assessee and ld. CIT-DR as noted above, we find from the facts that the timeline prescribed for filing Form No.10AB for registration u/s.12A of the Act in the case of assessee Trust has been extended up-to 30.09.2023 after considering the genuine hardship faced by charitable institutions vide various CBDT circulars and finally, vide Circular No.6/2023 dated 24.05.2023. Similarly, the timeline prescribed for filing Form No.10A for recognition u/s.80G of the Act was also extended up-to 30.09.2023 by the same circular for Trusts filing registration under clause (i) to first proviso to section 80G(5) of the Act. But the above extension was not extended beyond 30.09.2022, unlike other forms which were extended up to 30.09.2023 to the disputed forms namely Form No.10AB for renewal of recognit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(Exemption) for re-deciding the issue on merits as per law. The appeal of the assessee is allowed for statistical purposes. 9. Now coming to the instant facts, we observe that the assessee had filed Form 10AB for grant of final registration under Section 80G of the Act on 04.02.2023 i.e. within the extended time-line provide vide CBDT Circular with respect for final registration of Trust under Section 12A of the Act in Form 10AB i.e. 30.09.2023. Accordingly, in light of the aforesaid Ruling, the order of CIT(Exemptions) on this issue is set aside, and matter is remanded to the file of CIT(Exemption) for re-deciding the issue of grant of final registration under Section 80G(5) of the Act, on merits, as per law. 10. In the result, the appeal of the assessee is allowed for statistical purposes. 8. Again the Chennai ITAT in the case of Periyar Maniammai Academy of Higher Education and Research vs. CIT(E), reported in 161 taxmann.com 533 (Chennai Tribunal), while passing the order the Chennai Tribunal has held that where time line for filing Form 10AB under section 12A was extended due to genuine hardship faced by charitable institutions that extension should apply to renewal form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisional registration. 12. Further, we also observe that very recently vide Circular No. 7/2024 dated 25.04.2024 CBDT has further extended the due date of filing Form No. 10A/10AB under the Income Tax Act till 30.06.2024, taking into consideration the difficulties reiterated by tax payers electronic filing of 10A/10AB. It would be useful to reproduce the Circular for ready reference:- Circular No. 7/2024 F. No. 173/25/2024-ITA-I Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, Dated 25th April, 2024 Sub: Extension of due date for filing of Form No. 10A/10AB under the Income-tax Act, 1961-reg. On consideration of difficulties reported by the taxpayers and other stakeholders in the electronic filing of Form No. 10A/10AB, the Central Board of Direct Taxes (the Board) in exercise of its powers under section 119 of the Income-tax Act, 1961 (the Act) extended the due date for filing Form No. 10A to 31.08.2021 by Circular No. 1212021 dated 25.06.2021, to 31.03.2022 by Circular No.16/2021 dated 29.08.2021, to 25.11.2022 by Circular No. 22/2022 dated 01.11.2022 and further to 30.09.2023 by Circular No. 6/2023 dated 24.05.2023, and exte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication has been furnished under the wrong section code, it may furnish a fresh application in Form No. 10AB within the extended time provided in paragraph 3(ii) i.e. 30.06.2024. 5. It is also clarified that if any existing trust, institution or fund who had failed to file Form No. 10A for A Y 2022-23 within the due date as extended by the CBDT circular no. 6/2023 dated 24.05.2023 and subsequently, applied for provisional registration as a new trust, institution or fund and has received Form No. 10AC, it can avail the option to surrender the said Form No. 10AC and apply for registration for A Y 2022-23 as an existing trust, institution or fund in Form No. 10A within the extended time provided in paragraph 3(i) i.e. 30.06.2024. 13. Accordingly, since in the instant facts, as it evident from the various dates mentioned above, the assessee / Applicant Trust had filed application for grant of final approval under Section 80G(5) of the on 02.08.2023 and as noted by us in the preceding paragraph, the assessee could have filed application for grant of approval on or before 30.09.2023 which stands further extended to 30.06.2024 vide Circular No. 7/2024 dated 25.04.2024, then, in our cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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