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TMI Blog2025 (3) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the first limb of clause (iii) i.e. at least six months prior to expiry of the period of the provisional approval and not covered by the 2nd limb of clause (iii), as the activities already been commenced on 05.09.1980.
We are of the considered opinion that rule of procedure are just to handmade to administration of justice and not to penalise anybody and object of procedure only for interest of justice and same should be dealt with in just manner in order to fulfil the end's of justice. In conclusion, we are inclined to accept the plea of assessee / appellant and remitting the matter back to the file of the CIT(E) to decide the issue afresh on merit, in accordance with law.
Thus, the impugned order of the CIT(E) is hereby set aside and quashed on this point and matter be remitted back to file of the Ld. CIT(E) with the direction to decide expeditiously afresh in accordance with law treating the application as filed within statutory time limit. X X X X Extracts X X X X X X X X Extracts X X X X ..... oval." 6. The learned AR further submitted that the Taxation and other laws (relaxation and amendments of certain provisions) Act, 2020 w.e.f. 01.04.2021 inserted four provisions in section 80G(5) of the Act, in which first proviso provided the law and procedure for approval and renewal of approval u/s. 80(G)(5) of the Act. He was also submitted that the clause (i) of the first proviso deals with migration of Trusts who were already been approved under clause (vi) as on 31.03.2021 and clause (ii) of the first proviso deals with renewal of approval of Trust who are approved w.e.f. 01.04.2021 under the new procedure and also clause (ii) of the first proviso deals with renewal of approval of Trust which are provisionally approved w.e.f. 01.04.2021 under the new procedure. 7. He further argued that vide the Finance Act, 2023 clause (iv) was substituted w.e.f. 01.10.2023, which provided following two situations: firstly trust who have not commenced its activities on or after 01.04.2021 and secondly Trusts who have commenced its activities on or after 01.04.2021. In this regards, the learned AR submitted that since the trust was not migrating from old regime to new regime as its approv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. The relevant part of para no.6.4 of impugned order is reproduced as below : "6.4. From the above, it is evident that the activities of the applicant has commenced prior much before obtaining provisional approval u/s 80G(5) of the Act and the present application filed in Form No.10AB under Clause (iii), of first proviso to sub-section (5) of section 80G of the Act has not been filed within the time limit prescribed therein and also the assessee has not filed its application within the extended time limit provided by CBDT vide its circular No. 12 of 2021 dated 25.06.2021, circular No. 16 of 2021 dated 29.08.2021 and circular No. 8 of 2022 dated 31.03.2022. Therefore the above application is liable to be rejected as non maintainable, without going into the merits." 11. The Ld. AR further submitted that the solitary dispute involved in this appeal for adjudication that whether the aforesaid application for final approval filed by the assessee in Form 10AB on 21.09.2023 had been filed within the prescribed time or not ? In this regards it is submitted by the Ld. AR that in the foregoing fact situation the application filed on Form 10AB on 31.03.2023 could not be treated as time b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct we would find in a large number of cases where the sale is completed more than a year or two after the date of the agreement that the market price prevailing on the date of the sale is very much more than the price at which the property is sold under the agreement. Can it be contended with any degree of fairness and justice that in such cases, where there is clearly no understatement of consideration in respect of the transfer and the transaction is perfectly honest and bona fide and, in fact, in fulfilment of a contractual obligation, the asses- see who has sold the property should be liable to pay tax on capital gains which have not accrued or arisen to him. It would indeed be most harsh and inequitable to tax the assessee on income which has neither arisen to him nor is received by him, merely because he has carried out the contractual obligation undertaken by him. It is difficult to conceive of any rational reason why the Legislature should have thought it fit to impose liability to tax on an assessee who is bound by law to carry out his contractual obligation to sell the property at the agreed price and honestly carries out such contractual obligation. It would indeed be st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.3 Therefore, in these facts and circumstances of the case, we hold that the Assessee Trust had applied for registration within the time allowed under the Act. Hence, the application of the assessee is valid and maintainable. 12. Even otherwise, the Provisional Approval is upto A.Y.2025-26, and it can be cancelled by the ld.CIT(E) only on the specific violations by the assessee. However, in this case the ld.CIT(E) has not mentioned about any violation by the Assessee. Therefore, even on this ground the rejection is not sustainable. 13. However, the ld.CIT(E) has not discussed whether the Assessee fulfils all other conditions mentioned in the section as he rejected it on technical ground. Therefore, in these facts and circumstances we hold that the Assessee had made the application in form 10AB within the prescribed time limit and hence it is valid application. Therefore, we direct the ld.CIT(E) to treat the application as filed within statutory time and verify assessee's eligibility as per the Act. The ld.CIT(E) shall grant opportunity to the assessee. Assessee shall be at liberty to file all the necessary documents before the ld. CIT(E)." 13. From the bare perusal of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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