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TMI Blog2024 (10) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed for statistical purposes. - SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER AND SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER For the Appellant: None For the Respondent: Shri H Phani, CIT. DR 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 (Exemption), Ahmedabad (in short Ld. CIT(E) ), vide order dated 16.02.2024. 2. The Assessee has taken the following grounds of appeal:- 1. The Ld. AO has erred in in rejecting the application filed for approval U/s 80G(5)(iii) of the Act 2. Vide order dated 16.02.2024, Ld. CIT, Exemption Ahmedabad, has rejected the application on the ground that operation of trust has been commenced activities from FY 2018-19 onwards and assesses was required to make application for approval on or before 30.09.2022, however, application was made on 28.08.2023. so there was delay of almost 11 months. Hence, I request you to condone the delay on the following ground. Assessee is involved in charitable activity of dealing the life of mentally weak, retarded childrens, running coaching classes for the same etc. as trustee Mr. Jignesh Vasant Raval Is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of Bishnupur Public Education Institute, reported in 139 taxmann.com 12, where in the Hon'ble Tribunal while adjudicating the issue of similar provisions of due date u/s 10(23C) of the Act has held that 7. The adjudicating authorities under the Income-tax Act are quasi judicial authorities. They can grant approval with retrospective effect if such mechanism is provided in the Act. There is no such provision nor there is any power to condone the delay after considering the reasonable reasons. A reasonable cause can be taken into cognizance for condoning the delay, if such provision is provided in the Act while considering any issue for adjudication. Therefore, considering the above proposition, we are of the view that Id. CIT (Exemption) has rightly rejected the application of the assessee for grant of approval under section 10(23C)(vi) of the Income-tax Act. All these three appeals are rejected. The same ratio apply for applications made under clause (iii) of first proviso to of Income Tax Act, 1961 also. 4. CBDT on multiple occasions had extended the time limit in filing the application in Form 10AB under clause (iii) of first proviso to sub-section (5) of section 80G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (1) of section 12A of the Act, till 30-9-2023 where the due date for making such application has expired prior to such date. 6. In view of the above, trusts may now apply for registration/approval under clause (1) or clause (iii) of the first proviso to clause (23C) of section 10 or (ii) sub-clause (i) or sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act by 30.09.2023 and where such application is made by the said date and registration/approval is granted, the provisions of clause (iii) of sub-section (3) of section 115TD of the Act shall not apply on account of delay in making application in accordance with the provisions of clause (i) or (iii) of the first proviso to clause (23C) of section 10 or sub-clause (i) or (iii) of clause (ac) of sub-section (1) of section 12A of the Act. 7 it may be also noted that the extension of due date as mentioned in paragraph 5(ii) shall also apply in case of all pending applications under clause (ii) of the first proviso to clause (23C) of section 10 or sub-clause (ii) of clause (ac) of sub-section (1) of section 12A of the Act, as the case may be Hence, in cases where the trust has already made an application in Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, 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. 6. Therefore, the date of commencement of activities in your case should also be 6 month prior to the date of filing of Form 10AB. You may note that the benefit of circular No. 6/2023 dated 24.05 2023 of CBDT for filing belated application under clause (i) of first proviso to section 80G(5) was also available till 30.09.2022 only. 7. Therefore, if the activities of the fund/institution are not commenced within stipulated time as discussed above, you are requested to explain as to why the present application filed in section 80G(5)(iii) in form No. 10AB should not be treated as not filed within due date specified in the Act why the same should not be rejected as non-maintainable. 6 In response to the same, the applicant has filed its reply dated 04/12/2023 wherein the applicant has mentioned that the date of commencement of activities of the trust is 28.08.2023, However, the applicant has submitted its Annual account for FY 2021-22, on verification of the same it is observed that the applicant has received income from Grant i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtended to 30.09.2023. We observe that the ITAT in the case of Adani Education Foundation in ITA No. 359/Ahd/2023, has discussed the issue and has held 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. While passing the order, the ITAT made the following observations:- 8. In our considered view, the ITAT in the case of CIT-1982, Charitable Trust in ITA No. 827/Chennai/2023 has elaborately discussed the issue under consideration before us, after taking into consideration various judicial precedents which have been rendered in the past on the instant subject. The ITAT, in our considered view has correctly observed that there is no reason to provide for a distinction within the same provision, so as to have a different timeline for accepting application for grant of final approval in respect for grant of registration in Form No. 10AB for registration under Section 12A of the Act and for grant of final registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to in sub-clause (iv) of clause (a) of subsection (2) of section 80G, shall be allowed to the donor only if a statement of such donations is furnished by the done in Form 10BD. The certificate of such donation is required to be provided in Form No. 10BE. Further, Form No. 10BD and Form No. 10BE are required to be furnished on or before the 31st May, immediately following the financial year in which the donation is received. The timeline provided for filling of application for approval of Trust or any institution under the first and second proviso to sub-section (5) of section 80G of the Act is within six months of commencement of activities or at least six months prior to expiry of provisional approval. These two timelines are provided in first proviso to section 80G(5) of the Act. But, the CBDT time and again considering the difficulties in filing in the electronic mode of filing of Form No.10A or 10AB, in exercise of powers conferred upon it u/s.119 of the Act, extended the due date for filing Form No.10A or 10AB up to 30.09.2022 vide Circular No.16/2021 dated 29.08.2021 and further, vide Circular No.6/2023 dated 24.05.2023 up to 30.09.2023. But the CBDT has extended this date up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... understood and appreciated as a helpmate in the course of the process of administration of justice. Procedural provision should be so construed as to sub serve the course of justice and not to hinder it. It is a settled proposition of law that technicalities should not come in way in imparting the substantial justice. We get support of our this view from the decision of Hon ble Supreme Court in case of S. Nagaraj Others Vs. State of Karnataka Another 4 SCC 595. 7.6 Even in the decision of Jodhpur Bench of this Tribunal in the case of BhamashahSundarlal Daga Charitable Trust, supra, the assessee Trust received provisional approval u/s. 80G(5) vide order dated 16.08.2022 for the period from 16.08.2022 to A.Y. 2025-26. The assessee has also got approval u/s.12A(1)(ac) of the Act from A.Y. 2022-23 to A.Y. 2026-27 and assessee filed application in Form No.10AB for approval u/s. 80G(5) of the Act on 11.01.2023, which was treated as belated application and appropriate authority rejected the approval application filed by the assessee. But the Tribunal allowed the maintainability of application and directed the CIT(Exemption) to re-decide on merits. Hence, these decisions favors the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m 533 (Chennai Tribunal), while passing the order the Chennai Tribunal has held that where timeline for filing Form 10AB under section 12A was extended due to genuine hardship faced by charitable institutions that extension should apply to renewal form under section 80G(5)(iii) as well and application for renewal could not be rejected solely on basis of late filing. 6.1 In the case of CIT-1982 Charitable Trust vs. ITO 160 taxmann.com 475 (Chennai Tribunal), while passing the order the Tribunal held that the Timeline prescribed under clause (iii) of first proviso to section 80G(5) should be treated as directory and not mandatory, hence, once timeline prescribed for filing Form N0.10A for recognition under section 12A had been extended up to 30.09.2023, same may be treated as extended for forms namely Form No.10AB for renewal of approval/recognition/registration under clause (iii) of first proviso to section 80G also. 7. Further, we also observe that 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 electroni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the first proviso to sub-section (5) of section 80G of the Act, as the case may be. Hence, in cases where any trust, institution or fund has already made an application in Form No.10AB under the said provisions on or before the issuance of this Circular, and where the Principal Commissioner or Commissioner has not passed an order before the issuance of this Circular, the pending application in Form No. 10AB may be treated as a valid application. 4.1 Further, in cases where any trust, institution or fund has already made an application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application 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 subsequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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