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TMI Blog2025 (3) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose.
Application for registration u/s 80G(5)(iii) of the Act of the assessee was rejected by the ld. CIT(E) as non-maintainable as the same has not been filed with six months of commencement of activities - As relying on Tomorrow's Foundation [2024 (3) TMI 941 - ITAT KOLKATA] we allow the appeal of the assessee for grant of approval u/s 80G(5) if otherwise the assessee is eligible. We are however of the view that as we have already set aside the issue of grant of Registration u/s 12A to the file of the CIT(E) for a fresh determination regarding genuineness of the Trust activity, we deem it fit to set aside this issue of 80G(5) approval also to the file of the CIT(E) with a direction to the ld. CIT(E) not to consider the non-filing of application within 6 months of commencement of activities be an impediment in granting registration u/s 80G of the Act. The ground of appeal is allowed for statistical purpose. X X X X Extracts X X X X X X X X Extracts X X X X ..... y documents as required by the ld CIT(E) and there was enough material on record to prove the genuineness of the society and activities carried by it. In Form No 10AD the Id CIT(E) admitted that material filed by the society was showing charitable activities but rejected application by observing that the society could not conclusively prove the genuineness of its activities. The reason was vague. The society vide letter dated 08.02.2024 (P.No 179 of paper book) requested to give 20 days time so that its representative could attend CIT(E) office for further information. It was also requested to ld CIT(E) to depute some one from her office to visit the appellant and check the activities carried by the society. But the request was ignored and order was passed on 23.02.2024 without affording society any further hearing. 9. Per contra, the ld. DR relied upon the orders of the ld. CIT(E). 10. We have given a thoughtful consideration to the order of the CIT (Exemption). We are of the view that there is some typographical error in the findings of the CIT(E) where she accepted the charitable activities of the assessee. Be that it may, we are of the view that the ld. CIT(E) has not given s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10AC was issued on 23.09.2022 for the period 23.09.2022 to AY 2025-26 and application for regular registration was filed on 26.09.2023, the application was in time. The facts regarding genuineness of society and its activities are already established, the approval may be granted. 14. It was argued that in the alternate, as the assessee could not subsequently apply in accordance with the circular 7 dated 25.04.2024, because at that time it was not registered u/s 12A as it was required u/s 80G(5)(i) and the rejection was objected in appeal before the hon'ble ITAT. In case the appellant's request to ask ld CIT(E) to grant registration u/s 12AB is accepted, the application for approval u/s 80G may be deemed to have been filed in response to Circular No 7 as mentioned above and approval may be granted in disposal of the registration application. 15. Representatives of both the sides were heard at length. Case records carefully perused. 16. We find that the application for registration u/s 80G(5)(iii) of the Act of the assessee was rejected by the ld. CIT(E) as non-maintainable as the same has not been filed with six months of commencement of activities. 17. In similar facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o First Proviso to section 80G(5) of the Act has applied for fresh provisional registration under Clause (iv) to First Proviso to section 80G(5) of the Act and incidentally, the said fresh provisional registration has also been granted to the assessee- institution from 10.03.2023 to A.Y 2025-26. If the assessee- institution would have applied for renewal of the registration under Clause (i), then its approval u/s 80G(5) would have continued without any break. The last date for making such an application was upto 30.09.2023 as per the extended date from time to time vide Circular no.6 of 2023. However, since The assessee-trust has applied for fresh approval under Clause (iv) to First Proviso to section 80G(5) of the Act, therefore, the assessee-trust was entitled to apply for final registration and there was no bar to the institution for making such application. This issue has already been adjudicated upon by the Coordinate Bench of the Tribunal in the case of "Vivekananda Mission Asram vs. CIT" in ITA No.995/Kol/2023 decided on 08.12.2023 (Judicial Member herein being the author of the said order) while deliberating upon the provisions of section 80G(5) of the Act, has held as unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there is no delay on the part of the assessee in filing application in the prescribed form for grant of final registration under Clause (iii) of 1st Proviso to section 80G(5) of the Act. In view of the above observations, the matter is restored the file of the CIT(E) for decision afresh in the light of the observations made above." 5. It is to be further noted here that the ld. CIT(Exemption) firstly misconstrued about the CBDT Circulars regarding the exemption of date for final applications for approval. The said Circular/time limits are applicable only for the institutions who stood already registered on the date of Amendment and have made application for renewal of the registration without any time break. However, the said last date which has been extended to 30.09.23 by CBDT Circular No.6 of 2023 is not applicable for the institutions who have filed application for fresh provisional registration under Clause (iv) to First Proviso to section 80G(5) of the Act and thereafter for making application under Clause (iii) to First Proviso to section 80G(5) of the Act. 5.1 We deem it appropriate to mention here that CBDT has extended the date upto 30.09.2023 for making appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 80G(5) of the Act. 7 In the case in hand, the assessee admittedly has applied for final registration after grant of provisional registration under Clause (iv) to First Proviso to section 80G(5) of the Act and therefore, the application filed by the assessee is within limitation period. The issue is otherwise squarely covered by the decision of the Coordinate Bench of the Tribunal in the case of Vivekananda Mission Asram vs. CIT (supra) and in the case of "West Bengal Welfare Society vs. CIT(Exemption)" (supra) and further by the decision in the case of "Sri Aurobindo Bhawan Trust, Krishnagar vs. CIT(Exemption)" order dated 20.02.2024 (Judicial Member herein being the author of the said orders). Therefore, the impugned order of the CIT(Exemption) is set aside and the Id. CIT(Exemption) is directed to grant provisional approval to the assessee under Clause (iii) to First Proviso to section 80G(5) of the Act, if the assessee is otherwise found eligible. The Id. CIT(A) will decide the application for final registration within three months of the receipt of copy of this order. 8. In the result, the appeal of the assessee is treated as allowed for statistical purposes". 18. Follow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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