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Facts
The assessee, NRG Seva Samiti, filed an application for registration under Section 80G in Form-10AB, which was rejected by the CIT(E) because Form-10B was filed belatedly. The assessee contended that a recent CBDT Circular No.07/2024 extended the deadline for such filings, allowing for fresh applications.
Held
The Tribunal acknowledged the CBDT Circular No.07/2024, which permits fresh applications for re-registration even if previously rejected due to late filing, up to June 30, 2024. Consequently, the Tribunal remitted the issue back to the CIT(E) for fresh consideration in light of the circular, directing that a proper opportunity of being heard be given to the assessee.
Key Issues
Whether the rejection of the assessee's application for registration/re-registration under Section 80G was valid, given the subsequent CBDT Circular extending deadlines for belated filings of Form 10AB/10B.
Sections Cited
Section 80G, Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘E’: NEW DELHI
O R D E R
PER S.RIFAUR RAHMAN, AM:
This appeal has been filed by the Assessee against the order of Learned Commissioner of Income Tax (Exemptions), Chandigarh, [“Ld. CIT(E)”, for short], dated 03/08/2023.
At the time of hearing, the Ld. AR submitted that the assessee has filed an application u/s 80G in Form-10AB, however, the same was rejected by CIT(E) as non-maintainable for the reason that NRG Seva Samiti vs. CIT(E) Form-10B was filed belatedly. He submitted that the case of the assessee is covered by para 4.1 of the CBDT Circular No.07/2024 dated 25/04/2024 for extending the date of filing Form 10A/10B of the Income Tax Act, 1961 (‘the Act’ for short) to the date of 30/06/2024. With the above submission, he submitted that the assessee wishes to file the particulars of filing Form 10B again by taking benefit of above said circular and he prayed that this issue may be remitted back to Ld. CIT(E).
On the other hand, the Ld. DR has no specific objection to the above plea of the assessee.
Considered the rival submissions and material placed on record, we observed that the Ld. CIT(E) has rejected the application filed by the assessee and it is a fact on record that Form 10AB was filed belatedly, however, it is brought to our noticed that CBDT vide Circular No.07/2024 dated 24/05/2024 has extended time to file Form 10B. For the sake of clarity para 4.1 is reproduced below:- "4.1 Further, in cases 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, it may furnish a fresh application in Form No. 10AB within the extended time provided in paragraph 3(ii) i.e. 30.06.2024." The CBDT has also issued a press release dated 25.04.2024 which clarifies that '……….. those trusts, institutions or funds whose applications for re-registration were rejected solely on the grounds of late filing or filing under wrong section code, may also submit fresh application in Form 10AB within the aforesaid extended deadline of 30th June, 2024'. (copy of press release enclosed)”
From the above circular, it is clear that the respective assessee who has filed Form 10B belatedly are given more opportunities to file the same and take the benefit. Accordingly, we deem it fit and proper to remit this issue back to the file of Ld. CIT(E) to consider the plea of the assessee as per law. Accordingly, the appeal filed by the assessee is allowed for statistical purposes. It is needless to say that proper opportunity of being heard to the assessee be extended.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 14th August, 2024.