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Facts
The assessee filed an application for approval under sections 12A and 80G of the Income Tax Act, 1961, belatedly. The NFAC dismissed the application, stating it ought to have been filed within a specific timeframe prior to the expiry of provisional approval or commencement of activity.
Held
The Tribunal noted that there was a delay in filing the application. However, the delay was condoned by the CBDT vide Circular No.7/2024 dated 25.4.2024, which extended the due date for filing Form 10A/10AB. Therefore, the issue is remitted back to the CIT(Exemptions) for fresh consideration.
Key Issues
Whether the delay in filing the application for approval under sections 12A & 80G of the Income Tax Act, 1961, should be condoned in light of the CBDT circular.
Sections Cited
12A, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C’’ BENCH: BANGALORE
Before: SHRI CHANDRA POOJARI & SHRI KESHAV DUBEY
PER CHANDRA POOJARI, ACCOUNTANT MEMBER:
These two appeals by assessee are directed against two different orders of NFAC both are dated 2.4.2024.
In these appeals, the NFAC has not condoned the delay in filing the Form No.10AB dated 30.10.2023 for granting approval u/s 12A & 80G of the Income Tax Act, 1961 (in short “The Act”) on the reason that said application for approval ought to have been filed by the assessee atleast 6 months prior to expiry of the period of the provisional approval or within 6 months of commencement of its activity, which is earlier. However, in this case, the assessee filed belatedly before ld. CIT(Exemptions), Bangalore. In this case, it was noted by the ld. CIT(Exemptions) that assessee ought to have been filed the application by 30.9.2023. The application was made on & 884/Bang/2024 Sri Rama Charitable Trust, Bangalore Page 2 of 3 30.10.2023. Hence, it was dismissed. Against this assessee is in appeal before us. 3. After hearing both the parties, we are of the opinion that there was a delay in filing the application for approval u/s 12A/80G of the Act. However, that delay was condoned by CBDT vide Circular No.7/2024 dated 25.4.2024, which is reproduced below:
3.1 Being so, it is appropriate to remit this issue to the file of CIT(Exemptions) to consider the above Circular. 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. & 884/Bang/2024 Sri Rama Charitable Trust, Bangalore Page 3 of 3 4. In the result, both the appeals of the assessee are partly allowed for statistical purposes.
Order pronounced in the open court on 10th June, 2024