Loading judgment…
Facts
The assessee filed applications for registration under section 12AB and approval under section 80G, which were rejected by the CIT(Exemptions) for being belated. The assessee's provisional registration under 12AB was dated 27.05.2021, and the application for registration under 12AB was filed on 07.11.2023, beyond the specified time limit. Similarly, the application for 80G approval was filed on 08.11.2023, after the expiry of the provisional approval period, and thus also considered belated.
Held
The Tribunal noted that the CBDT had extended the due date for filing Form 10A/10AB till 30.06.2024, as per a press release dated 25.04.2024. Given this extension, the assessee's case was covered by the press release.
Key Issues
Whether the rejection of registration u/s 12AB and approval u/s 80G on grounds of belated filing is justified in light of CBDT's extended due dates.
Sections Cited
12AB, 80G, 10(23C), 35
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH : BANGALORE
Before: SMT. BEENA PILLAI & SHRI LAXMI PRASAD SAHU
Per Laxmi Prasad Sahu, Accountant Member These two appeals are filed by the assessee against the separate orders dated 03.04.2024 of the CIT(Exemptions), Bangalore for rejecting registration u/s. 12AB of the Act as well as approval u/s. 80G of the Act respectively.
The CIT(Exemptions) noted that assessee obtained provisional registration u/s. 12AB in Form 10AC dated 27.05.2021 for AY 2021- 22 to 2023-24. He noted that the application in Form 10AB for registration u/s. 12AB was filed on 07.11.2023 which is beyond time limit specified as per CBDT Circular No.6 of 2023 dated 24.05.2023 and therefore denied registration. Regarding approval u/s. 80G(5) of the Act, the CIT(Exemptions) observed that for regularisation of provisional registration obtained u/s. 80G, the application in Form 10AB was filed only on 08.11.2023 after expiry of the provisional approval period in Form 10AC dated 09.07.2021 for AY 2021-22 to 2023-24. He noted that as per the proviso to section 80G(5) the application should have been made before 30.09.2022. Since the application of the assessee is belated, approval u/s.80G was rejected. Aggrieved, the assessee is in appeals before the ITAT.
The ld. AR submitted that the CBDT has extended the due date for filing Form 10A/10AB vide press release dated 25.04.2024 till 30.6.2024. He therefore the issue should be sent back to CIT(Exemptions) for fresh consideration.
The ld. DR relied on the orders of lower authorities.
After hearing both the sides, we note that the CBDT has extended the due date till 30.06.2024 for filing Form 10AB vide Press release dated 25.04.2024 which is as under:-
PRESS RELEASE CBDT EXTENDS DUE DATE FOR FILING FORM 10A / 10AB PRESS RELEASE, DATED 25-4-2024 The Central Board of Direct Taxes (CBDT), has issued Circular No. 7/2024, dated 25-4-2024 further extending the due date for filing Form 10A/ Form 10AB under the Income-tax Act, 1961 (the 'Act') upto 30th June, 2024. CBDT had earlier extended the due date for filing Form 10A/ Form 10AB by trusts, institutions and funds multiple times to mitigate genuine hardships of the taxpayers. The last such extension was made by Circular No. 6/2023 extending the, date to 30-9-2023. Considering the representations received by CBDT requesting for further extension of due date for filing of such Forms beyond the last extended date of 30-9-2023, and with a view to avoid genuine hardships to taxpayers, CBDT has extended the due date of filing Form 10A/ Form 10AB upto 30th June, 2024, in respect of certain provisions of section 10(23C)/ section 12A/ section 80G/ and section 35 of the Act. CBDT further clarifies that, if any such existing trust, institution or fund had failed to file Form 10A for AY 2022-23 within the extended due date, and subsequently, applied for provisional registration as a new entity and received Form 10AC, can also now avail this opportunity to surrender the said Form 10AC and apply for registration for AY 2022-23 as an existing trust, institution or fund, in Form 10A till 30th June, 2024. It is also clarified 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. The applications as per Form 10A/ Form 10AB shall be filed electronically through the e-filing portal of Income Tax Department. The Circular No. 7/2024 is available on www.incometaxindia.gov.in Surabhi Ahluwalia Pr. Commissioner of Income Tax (Media & Technical Policy) & Official Spokesperson, CBDT
From the above, it is clear that the assessee’s case is covered by the above CBDT press release. Therefore, the matter in both the appeals is remitted back to the ld. CIT(Exemptions) for fresh consideration and decision as per law.
In the result, both the appeals are allowed for statistical purposes.