9911796707
TMI Blog2024 (10) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... a Charitable Foundation ITA 1220/PUN/2023. Ld.AR explained that the assessee had filed an application for approval u/s 80G of the Act on 26/09/2023, which was before the expiry of Provisional Approval. Hence the application was filed within time. Ld.AR filed copy of Provisional Approval dated 24/09/2021 and explained that provisional approval u/s 80G(5) of the Act is upto AY 2024-25. Ld.AR submitted that CIT has no jurisdiction to cancel the Provisional Approval without giving proper show cause notice. 3) Submission of Ld.DR: Ld.DR relied on the order of the CIT(E). 4) Findings and Analysis : We have heard both the parties and perused the records. It is an admitted fact that Assessee filed an application u/s 80G(5) of the Act in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ... Or (iv) any other fund or any institution to which this section applies; or (v) the Government or any local authority, to be utilised for any charitable purpose other than the purpose of promoting family planning; or (vi) .............. (via) .......... (vii) .......... (b) .............. (c) ..................... (d)............. (4) ............................ (5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely :- (i) where the institution or fund derives any income, such income would not be liable to inclusion in its total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 2571 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law, or is an institution financed wholly or in part by the Government or a local authority; (vi) in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being approved by the Principal Commissioner or Commissioner; (vii)............ (viii) .......... (ix).............. Provided that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded further that the Principal Commissioner or Commissioner, on receipt of an application made under the first proviso, shall,- (i) where the application is made under clause (i) of the said proviso, pass an order in writing granting it approval for a period of five years; (ii) where the application is made under clause (ii) or clause (iii) [or sub-clause (B) of clause (iv)] of the said proviso,- (a) call for such documents or information from it or make such inquiries as he thinks necessary in order to satisfy himself about- (A) the genuineness of activities of such institution or fund; and (B) the fulfilment of all the conditions laid down in clauses (i) to (v); (b) after satisfying himself about the genuineness of activities un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the provisional approval or within Six months of Commencement of its activities whichever is earlier. 4.6) The Commissioner of Income Tax (Exemption) in the case of the Assessee held that the Activities of the Assessee had commenced in 1986, hence the assessee was liable to make application for Approval u/s 80G of the Act on or before 30/June /2021 which was extended to 30/9/2022 by various circulars of CBDT. Since assessee made application in Sep 2023, the CIT(E) held it to be time barred. 4.7) However, the CIT(E) had erred in ignoring the most important fact in this case that the Assessee had received valid Provisional Approval and it was valid till AY 2024-25. Therefore, in this case when we read the sub clause (iii) of the Proviso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0, for registration under section 12AA, for approval under section 80G shall be provisionally approved or registered for three years on the basis of application without detailed enquiry even in the cases where activities of the entity are yet to begin and then it has to apply again for approval or registration which, if granted, shall be valid from the date of such provisional registration. The application of registration subsequent to provisional registration should be at least six months prior to expiry of provisional registration or within six months of start of activities, whichever is earlier" 4.9) Thus, when we read the Budget Speech of Hon'ble Finance Minister 2020 and the Memorandum of Finance Bill 2020 together, it becomes clear t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
