PROTECT AND RESCUE ANIMALS IN NEED INITIATIVE (PRANI),CHENNAI vs CIT, EXEMPTIONS,, CHENNAI

Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI

Before: SHRI ABY T VARKEY & SHRI AMITABH SHUKLA

Hearing: 08.07.2025Pronounced: 03.10.2025

आयकर अपीलीय अधिकरण, ’सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य के समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1151/Chny/2025 Assessment Years: - Protect and Rescue Animals in need Commissioner of Income Tax initiative (PRANI), (Exemptions), No.10, Door No.5, BNB Flats, Chennai. 6th Avenue, Ashok Nagar, Chennai- 600 083. [PAN: AAFTP0832N] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri M.Viswanathan, C.A. प्रत्यर्थी की ओर से /Revenue by : Shri Bipin C.N, CIT सुनवाई की तारीख/Date of Hearing : 08.07.2025 घोषणा की तारीख /Date of Pronouncement : 03.10.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M :

This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / EXM / F / EXM44 / 2025-26 / 1075602432(1) dated 11.04.2025 of the Learned Commissioner of IncomeTax (Exemptions) [herein after “CIT(E), Chennai-1. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. 2.0 The only issue contested by the appellant assessee, through its grounds of appeal, is the rejection of its application for grant of exemption u/s 80G by the Ld.CIT(E). The application of the assessee was rejected for having been filed late i.e beyond the timeline, including extended timeline, prescribed by the Revenue authorities. 3.0 It is the case of the appellant that the delay cannot come in the way of its eligibility for grant of exemption u/s 80G. The Ld.Counsel for the assessee submitted that it was granted provisional registration in Form-10AC on 19.12.2022. Thereafter, vide application dated 23.11.2024 in Form-10AB request for final registration was made u/s 80G(5)(iii) was made. It was submitted that vide order 11.04.2025 the Ld.CIT(E) has rejected the application of the assessee. While concluding the same, the Ld.CIT(E) postulated that the impugned application was due to have been filed on 30.06.2024 and has the same was filed on 09.10.2024 it was liable for rejection. It was also concluded that the Ld.CIT(E) did not have any authority to condone the delay. 4.0 The Ld.Counsel for the assessee vehemently argued against the decision of Revenue Authorities in rejecting its application. It was submitted that the Ld.CIT(E) has inherent powers to condone the delay which is on par with such powers available qua grant of registration u/s 12A. The Ld.Counsel simultaneously also argued that this tribunal also possesses powers to condone the delay in applications filed after the due date and direct Ld.CIT(E) to grant registration after condoning the delay. The Ld.Counsel said that the insignificant delay of 8 days may be Page - 2 - of 22 condoned. It was argued that grave injustice is being caused by the denial of the registration u/s 80G. The Ld.Counsel also drew our attention to the amended provisions of the Finance Act as per clause-(iv) of section 80G and that in consonance thereof the Ld.CIT(E ) may be directed to condone the delay and grant registration u/s 80G. In support of its contentions, the Ld.Counsel drew support from orders of this tribunal, directing Ld.CIT(E ) to condone the delay and consider grant of registration u/s 80G. 5.0 Per contra, the Ld.DR relied upon the order of lower authorities. It was argued that the provision of law is clear mandating grant of registration u/s 80G to applications filed within prescribed timelines. 6.0 We have heard the rival submissions in the light of material available on records. We have noted that the principal issue is as to whether the delay caused by the assessee in filing of its application u/s 80G for grant of registration can be condoned and registration be granted ???. We have also noted that CBDT through its instructions has accorded powers to the CIT(E) for condoning the delay in matters concerning 12A registrations. We have noted that while doing so, CBDT had primarily examined the issue of “continuing hardship” to the taxpayers in filing timely applications and thus being deprived of registration on such technical deficiencies. Registrations under section 12A and 80G are closely inter-linked and or rather supplementing their Page - 3 - of 22 independent objectives. The present issue is also one of genuine hardships and therefore there cannot be a distinction within the same provision without bringing any exception. The provisions of 80G are for the benefit of donors who are donating amounts of money to Charitable Trusts, engaged in selfless public service, for claiming exemption in the Returns of Income. We have noted that this issue has been extensively dealt by a Hon’ble Coordinate bench of this tribunal in the case of CIT- 1982 Charitable Trust as at 160 taxmann.com 475. Further, in the case of Society for Community Organization and Peoples Education(SCOPE) in dated 03.10.2025 it was observed that :- “……7.0 We have heard the rival submissions in the light of material available on records. We have noted that the principal issue is as to whether the delay caused by the assessee in filing of its application u/s 80G for grant of registration can be condoned and registration be granted ???. We have also noted that CBDT through its instructions has accorded powers to the CIT(E) for condoning the delay in matters concerning 12A registrations. We have noted that while doing so, CBDT had primarily examined the issue of “continuing hardship” to the taxpayers in filing timely applications and thus being deprived of registration on such technical deficiencies. Registrations under section 12A and 80G are closely inter-linked and or rather supplementing their independent objectives. The present issue is also one of genuine Page - 4 - of 22 hardships and therefore there cannot be a distinction within the same provision without bringing any exception. The provisions of 80G are for the benefit of donors who are donating amounts of money to Charitable Trusts, engaged in selfless public service, for claiming exemption in the Returns of Income. We have noted that this issue has been extensively dealt by a Hon’ble Coordinate bench of this tribunal in the case of CIT- 1982 Charitable Trust as at 160 taxmann.com 475. “….7. We have heard rival contentions and gone through the facts and circumstances of the case. First of all, it is to be noted that the assessee trust has commenced its activities on 14.07.2017 and assessee is also provisionally approval u/s.80G(5)(iv) of the Act. The assessee trust was required to file application in Form No.10AB u/s.80G(5)(iii) of the Act within the time period of six months prior to expiry of the period of provisional approval or within six months of commencement of its activities, whichever is earlier, in term of clause (iii) of first proviso to sub-section (5) of section 80G of the Act. The relevant proviso reads as under:- “Provided that the institution or fund referred to in clause (vi) shall make an application in the prescribed form and manner to the Principal commissioner or Commissioner, for grant of approval, -

PROTECT AND RESCUE ANIMALS IN NEED INITIATIVE (PRANI),CHENNAI vs. CIT, EXEMPTIONS,, CHENNAI