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Facts
The assessee trust filed an application for final registration under Section 80G(5) of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemption) rejected the application on the grounds of delay in filing.
Held
The Tribunal held that the assessee could have filed the application for final approval within the extended period granted for registration under Section 12A, and rejection solely on the ground of delay was not justified.
Key Issues
Whether the rejection of the Section 80G(5) application for final registration on grounds of delay is valid when an extension was granted for Section 12A registration?
Sections Cited
80G(5), 12A, 10AB, 10AC
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Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: Shri T.R. Senthil Kumar & Shri Makarand Vasant Mahadeokar
Flavaroma Charitable The Commissioner Foundation of Income Tax 401, Aryavart Heights, Vs (Exemption), Prernatirty Derasar Road, Ahmedabad Jodhpur, Satellite, Ahmedabad-380015 Gujarat, India PAN: AAATF8456B (Respondent) (Appellant) Assessee Represented: Ms. Arti N Shah, A.R. Revenue Represented: Shri Prathvi Raj Meena, CIT-DR Date of hearing : 24-02-2025 Date of pronouncement : 26-02-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-
This appeal is filed by the Assessee as against the Rejection order dated 21-03-2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying Registration under Section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
Page No 2 Flavaroma Charitable Foundation vs. CIT(E)
The registration was denied by Ld. CIT(E) on account of delay in filing the final registration application u/s 80G(5)(v) of the Act. List of Dates and Events in this case are as follows:
Sr. Dates Events Remarks No. 1. 19.03.2021 Incorporation of Trust -- 2. F.Y. 2021-22 Date of Commencement of Donations received -18-08-2021 Activity Donation Given – 19-08-2021 3. 24.09.2021 Date of receipt provisional For A.Y. 2022-23 to 2024-25 – registration u/s 3 years upto 31-03-2024 12AB(1)(b) 4. 25.09.2023 Date of filing application u/s 12AB(2)(b) 5. 04.03.2024 Date of final order u/s For A.Y. 2022-23 upto 2026-27 12AB(1)(b) 6. 24.09.2021 Date of receipt provisional For A.Y. 2022-23 to 2024-25 registration u/s. 80G(5) 7. 30.09.2023 Date of filing final application u/s 80G(5) 8. 21.03.2024 Rejection of application filed u/s 80G(5)
The Ld. CIT(E) has granted Final Registration u/s. 12AB(1)(b) of the Act on 04-03-2024 however denied final registration for application filed u/s. 80G(5) of the Act as the same was filed beyond the time limit prescribed under the Act and there is no power to condone the delay in filing Form No. 10AB by the Ld. CIT(E) thereby rejected the application as non-maintainable.
We have heard rival submissions and perused the materials available on record. The Co-ordinate Bench of this Tribunal in similar case of delay in filing the application for Final Registration u/s. 80G(5) of the Act in the case of Bhurabhai Punjabhai Parsana Foundation Vs. CIT(E) reported in (2024) 164 taxmann.com 749 Page No 3 Flavaroma Charitable Foundation vs. CIT(E) remanded the matter back to the file of Ld. CIT(E) for de novo consideration by observing as follows:
“Section 80G of the Income-tax Act, 1961 - Deductions - Donation to certain funds, charitable institutions (Approval under sub-section (5)) - Assessment year 2023-24-Assessee-trust had earlier been granted provisional approval in Form No. 10AC under clause (iv) of first proviso to section 80G(5) on 24-9-2021-It filed application for grant of final approval under clause (iii) of first proviso to section 80G(5) in Form No. 10AB on 2-8-2023 Commissioner Exemption) having found that date of commencement of activities of trust was 11-11-2021 observed that assessee was required to file application for final approval on or before 30-9- 2022 and rejected application as not maintainable Whether on a reasonable interpretation, assessee could have filed application for grant of final approval under clause (iii) of first proviso to section 80G(5) upto 30-9-2023 in view of extention granted to registration of trust Lunder section 12A till 30-9-2023 Held, yes Whether thus application for grant of final approval could not have been rejected only on ground that same was not filed on or before 30-9-2022-Held, yes [Paras 10 and 13] [Matter remanded]” 4.1. Similarly in the case of Navsari Agricultural University Vs. CIT(E) reported in (2024) 164 taxman.com 256 the Co-ordinate Bench held as follows:
“Section 80G of the Income-tax Act, 1961-Deductions - Donation to certain funds, charitable institutions (Approval) Whether once timeline prescribed for filing Form No. 10A for recognition under section 12A had been extended up to 30-9- 2023, same may be treated as extended for forms namely Form No. 10AB for renewal of approval/recognition/registration under clause (iii) of first proviso to section 80G also - Held, yes Assessee trust was an old Trust which was registered on 6-3-2004-It was granted provisional approval under section 80G(5) on 26-10- 2022 and filed application for grant of final approval under section 80G(5) on 28- 3-2023 Commissioner (Exemption) held that benefit of circular No. 6/2023 dated 24-5- 2023 of CBDT for filing belated application under clause (i) of first proviso to section 80G(5) was available till 30-9-2022 only and since assessee did not file application under section 80G(5) within time limit, application was to be rejected - Whether since assessee trust had filed application for grant of final approval under section 80G(5) within a period of six months from date of grant of provisional registration and it could have filed application for grant of registration under section 80G(5) in Form 10AB up to 30-9-2023 in view of extension granted to registration of trust under section 12A till 30-9-2023, application for grant of final registration under section 80G(5) could not be denied only on ground that same was not filed before 30-9-2022-Held, yes [Para 13] [In favour of assessee]”
Page No 4 Flavaroma Charitable Foundation vs. CIT(E)
Further in the present case, Final Registration u/s. 12A is already granted by the Ld. CIT(E) to the assessee Trust. Therefore, we deem it fit to set aside the matter back to the file of Ld. CIT(E) to grant Final Registration u/s. 80G(5) of the Act in accordance with the provisions of law and by giving proper opportunity of hearing to the assessee.
In the result, the appeal filed by the Assessee is allowed for statistical purpose.
Order pronounced in the open court on 26-02-2025 Sd/- Sd/- (MAKARAND VASANT MAHADEOKAR) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 26/02/2025 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद