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Facts
Navjyoti Education Society, the assessee, received provisional approval under Section 80G(5)(iv) and subsequently applied for approval under Section 80G(5)(iii) in Form 10AB on 16.01.2023. The CIT(Exemptions) rejected this application as non-maintainable, citing that it was filed beyond the due date of 30.09.2022 as per CBDT Circular No. 8/2022.
Held
The Tribunal noted that a later CBDT Circular No. 7/2024 extended the due date for Section 80G(5)(iii) applications to 30.06.2024, and the assessee's counsel argued that the system did not permit filing a fresh application once one was already submitted. Considering the facts and in the interests of justice, the Tribunal remanded the entire issue back to the file of the ld. CIT(Exemptions) for reconsideration and re-examination after providing the assessee a reasonable opportunity of being heard.
Key Issues
Whether an application for Section 80G(5)(iii) approval, initially rejected for late filing, should be reconsidered in light of a subsequent CBDT circular extending the due date, particularly when the system prevents filing a fresh application.
Sections Cited
80G(5)(iv)(b), 80G(5)(iv), 80G(5)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH KOLKATA
Before: Shri Rajesh Kumar & Shri Sonjoy Sarma
Assessment Year: 2024-25 Navjyoti Education Society………………………………………..………….……Appellant Matri Bhaban, Vidyasagar Pally, Jhargram, Dist-Jhargram, West Bengal-721507. [PAN: AABTN2609M] vs. CIT(Exemptions), Kolkata……..……....….….. ………………..........…...…..…..Respondent Appearances by: Shri P. K. Ray, AR, appeared on behalf of the appellant. Shri Raja Sengupta, Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing : January 30, 2025 Date of pronouncing the order : February 12, 2025 ORDER
Per Sonjoy Sarma, Judicial Member:
The present appeal has been preferred by the assessee against the order dated 23.09.2024 of the Commissioner of Income Tax (Exemption), Kolkata [hereinafter referred to as ‘CIT(Exemption)’] rejecting the application of the assessee for approval as per the provisions of section 80G(5)(iv)(b) of the Income Tax Act (hereinafter referred to as the ‘Act’).
Brief facts of the case are that the assessee was granted provisional approval u/s 80G(5)(iv) of the Act in Form No.10AC by an order dated 31.12.2021 which is valid from 31.12.2021 to A.Y 2024-25. Subsequently, the assessee filed application for approval u/s 80G(5)(iii) on 16.01.2023 in Form 10AB under Rule 17A of the I.T. Rules 1962. Subsequently, a notice was issued to the assessee at the email address provide by the applicant trust requesting details of its activity along with supporting document. In response to that, the assessee furnished certain documents which were duly examined and it was noted that the assessee had commenced its activities on 06.04.2000. As per CBDT Assessment Year: 2024-25 Navjyoti Education Society Circular No.8/2022 dated 31.03.2022, the extended due date for filing Form 10AB was upto 30th September 2022. However, the assessee did not file the application within the stipulated time as provided. Consequently, a notice was issued to the assessee. In reply, the assessee argued before the ld. CIT(E) that CBDT Circular No.6 of 2023 dated 24.05.2023 had extended due date for submission of Form 10AB upto 30.09.2023 considering the hardship faced by the organizations. However, the ld. CIT(E) noted that the circular of 2023 did not extend the due date for applications u/s 80G(5)(iii), the due date for application remained 30.09.2022. Consequently, the application filed by the assessee on 16.01.2023 in Form 10AB was rejected as not maintainable.
Aggrieved by the said order, the assessee preferred an appeal before this Tribunal citing another CBDT Circular No.7/2024 dated 25.04.2024 wherein the due date for submission of the application under section 80G(5)(iii) was extended upto 30.06.2024. The ld. AR contended that since the assessee had already submitted an application in Form 10AB, the system itself did not allow a fresh application to be filed. The ld. AR accordingly requested before the Bench that the instant issue may be considered by the ld. CIT(E) by treating the existing application as an application filed u/s 80G(5)(iii) and prayed that the matter may be remanded back to the file of the ld. CIT(E).
On the other hand, the ld. DR did not object to such relief as sought by the assessee for remanding back the issue to the file of the ld. CIT(E) for re-examination of the issue afresh.
We, after hearing both the parties and perusing the materials available on record, find that the assessee has submitted an application in Form 10AB before the issuance of CBDT Circular No.7/2024 wherein the due date for submission of application u/s 80G(5)(iii) was extended upto 30.06.2024. The contention of the assessee is that the assessee had Assessment Year: 2024-25 Navjyoti Education Society already filed an application in Form 10AB and the system did not allow it to file fresh application in this respect and the assessee failed to submit fresh application within the extended time-limit as prescribed in the said circular. Considering the facts and circumstances of the case and in the interests of justice and fairness, we feel it necessary to remand the whole issue to the file of the ld. CIT(E) for reconsideration of the issue involved in this appeal. Accordingly, the matter is remanded to the file of the ld. CIT(A) to reexamine anew after providing reasonable opportunity of being heard to the assessee.
In terms of the above, the appeal of the assessee is allowed for statistical purposes.
Kolkata, the 12th February, 2025.