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Facts
The assessee filed an application for registration under Section 80G of the Income Tax Act. The CIT(E) rejected the application on grounds of non-compliance and for being non-maintainable, stating previous notices were not complied with.
Held
The Tribunal held that the CIT(E) had wrongly applied the CBDT Circular. Considering the circumstances and the applicability of the circular extending the due date, the Tribunal directed the CIT(E) to grant the registration.
Key Issues
Whether the rejection of the application for registration u/s 80G by the CIT(E) for non-compliance was justified, or if the benefit of the CBDT circular extending the due date should be applied.
Sections Cited
80G, 10, 12A, 35, 119
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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE
Assessee by : Shri Anil Sathe, A/R Revenue by : Smt. Beena Santosh, CIT D/R सुनवाई की तारीख/Date of Hearing : 28/04/2025 घोषणा की तारीख /Date of Pronouncement: 30/04/2025 आदेश/O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the assessee is preferred against the order of the ld. CIT (Exemptions), Mumbai [hereinafter ‘the ld. CIT(E)’] dated 29/12/2024, by which the ld. CIT(E) has rejected the application for registration u/s 80G of the Act holding it to be non- maintainable.
Having heard the rival submissions, we have carefully perused the impugned order of the ld. CIT(E). The reasons given by the ld. CIT(E) for rejecting the application read as under:- “2. It is noticed that earlier the applicant had filed Form 10AB on30.09.2022 for regularization of provisional approval in which notices were issued for compliance, but the applicant had not complied with the notices. Since the applicant had not complied with the notices, this application in Form 10AB u/s 80G(5)(iii) was rejected on the grounds of non-compliance vide order dated 09.03.2023 in Form 10AD Thereafter the applicant re-filed application for regularization of provisional approval as per circular no. 7/2024 dated 25.04.2024. 3. Para 4.1 of Circular No. 7/2024 dated 25.04.2024 is applicable in the case of the applicant, which is reproduced as under:
2 "......., in case 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?”
We are of the considered view that the ld. CIT(E) has wrongly applied the CBDT Circular No. 7/2024 [F.No. 173/25/2024-ITA-I]. The relevant part of the Circular (supra), which is applicable to the assessee reads as under:- “3. On consideration of the matter, with a view to avoid and mitigate genuine hardship in such cases, the Board, in exercise of the powers conferred under section 119 of the Act, hereby extends the due date of making an application/intimation electronically in - (i) Form No. 10A, in case of an application under clause i) of the first proviso to clause (23C) of section 10 or under sub-clause i) of clause (ac) of sub- section (1) of section 12A or under clause i) of the first proviso to sub-section (5) of section 80G or in case of an intimation under fifth proviso of sub-section (1) of section 35 of the Act, till 30-6-2024; (ii) Form No. 10AB, in case of an application under clause (iii) of the first proviso to clause (23C) of section 10 or under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A or under clause (iii) of the first proviso to sub- section (5) of section 80G of the Act, till 30-6-2024.”
We find that the same ld. CIT(E) has granted registration u/s 12 of the Act vide order dated 29/12/2014 which is placed at pages 4 to 7 of the paper book. In light of the aforementioned CBDT Circular, we direct the ld. CIT(E) to grant registration u/s 80G of the Act.
In the result, appeal of the assessee is allowed. Order pronounced in the Court on 30th April, 2025 at Mumbai. (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE-PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 30/04/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs