Loading judgment…
Facts
The assessee's application for renewal of registration under section 80G of the Act was rejected by the CIT(E) because it was filed on 31.10.2023, which was after the due date. The assessee relied on a CBDT press release allowing fresh applications within an extended deadline of 30.06.2024.
Held
The Tribunal referred to a CBDT circular and a previous order of the Bangalore Bench of the Tribunal in a similar case. The Tribunal decided to restore the matter to the CIT(E) for fresh consideration.
Key Issues
Whether the assessee's application for renewal of registration under section 80G, filed after the due date but within the extended period allowed by a CBDT circular, should be considered afresh by the CIT(E).
Sections Cited
80G, 80G(5), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI GEORGE GEORGE K & SHRI WASEEM AHMEDR
Per George George K, Vice President:
This appeal at the instance of the assessee is directed against the order of CIT(E) dated 03.04.2024 wherein the CIT(E) rejected the application for approval under section 80G of the Act. The reasons for rejection of renewal of registration under section 80G of the Act was that assessee had not filed application in Form 10AB within the due dates specified but only on 31.10.2023 i.e., after expiry of provisional approval period.
The learned AR, by referring to CBDT’s press release dated 25.04.2024, submitted that a fresh application in Form 10AB can be filed within the extended deadline i.e., 30.06.2024. Therefore, it was prayed that the matter may be remanded to the CIT(E) to take a decision in light of the fresh CBDT’s press
ITA No.855/Bang/2024 Page 2 of 4
release letter dated 25.04.2024. In this context, the learned AR relied on the Order of the Bangalore Bench of the Tribunal in the case of Samyata Foundation Vs. DCIT in ITA No.657/Banga/2024 (Order dated 16.05.2024).
The learned DR was duly heard.
We have heard the rival submissions and perused the material on record. Assessee’s application for renewal of registration under section 80G of the Act was rejected by the CIT(E) by observing as under:
“On receipt of application in Form No.10AB dated 31.10.2023 for approval u/s 80G of the Income tax Act. 1961, assessee was granted opportunity of being heard vide notices dated 08.01.2024 and 03.02.2024, wherein the assessee was required to appear before CIT(Exemptions) in person or through authorized representative along with the details/documents. In response to the notices, vide letters dated 13.02.2024. assessee made submissions in tappal and requested for time to appear before CIT(Exemptions), Bengaluru. However, did not appear before CIT(Exemptions) to demonstrate the activities carried on and the genuineness of the same. 2. From the submissions, it is seen that assessee has obtained approval u/s.80G in Form No.10AC dated 15.10.2021 (provisional from 15.10.2021 to A Y 2024-25). For regularization of the provisional approval obtained u/s.80G, assessee filed application in Form No.10AB only on 31.10.2023. 3. As per proviso to Section 80G(5) of the Act, the institution/fund shall make an application for grant of approval "(iii) where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier". According to the Section, assessee should have made the application on or before 30.09.2023. However, in the present case, assessee has made the application in Form No.10AB only on 31.10.2023. Thus the application is made belatedly.
ITA No.855/Bang/2024 Page 3 of 4
In view of the above, the application filed in Form No.10AB dated 31.10.2023 for approval u/s.80G of the Act, is hereby rejected and approval cancelled.”
We notice that CBDT in its press release dated 25.04.2024 had stated that if an earlier application in Form 10AB has been rejected solely for the reason of late filing, assessee may submit fresh application in Form 10AB within the extended deadline of 30.06.2024. The relevant extract of the press release of the CBDT extending the due date for filing Form 10AB reads as follows:
“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.”
On identical facts, the Bangalore Bench of the Tribunal had restored the matter to the CIT(E) for fresh consideration. The relevant finding of the Bangalore Bench of the Tribunal in the case of Samyata Foundation Vs. DCIT (supra) reads as follows:
“3. We have heard the rival submissions and perused the materials available on record. The ld. A.R. submitted that there was a delay in filing the application for approval u/s 12AB of the Act. However, that delay was condoned by CBDT vide Circular No.7/2024 dated 25.4.2024, wherein specifically observed as follows:
“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
ITA No.855/Bang/2024 Page 4 of 4
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.” 3.1 In view of this, we remit the entire issue in dispute to the file of ld. CIT (Exemptions) for fresh consideration to decide the same in accordance with law.”
In light of the aforesaid order of the Tribunal and the Board’s Circular, we restore the matter to the CIT(E) for fresh consideration of the issue.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Pronounced in the open court on the date mentioned on the caption page. Sd/- Sd/- Sd/- (WASEEM AHMED) (GEORGE GEORGE K) Accountant Member Vice President Bangalore. Dated: 10.06.2024. /NS/*
Copy to: 1. Appellants 2. Respondent 3. DRP 4. CIT 5. CIT(A) 6. DR, ITAT, Bangalore. 7. Guard file By order
Assistant Registrar, ITAT, Bangalore.