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Facts
The assessee's application for renewal of registration under section 80G was rejected by the CIT(Exemptions) on the grounds that the application filed on 22.11.2023 was belated, despite having obtained provisional approval on 23.9.2021. The assessee argued that the delay in filing was condoned by a CBDT circular.
Held
The Tribunal referred to a similar issue previously decided where the delay in filing applications for renewal under section 80G was condoned by the CBDT. Therefore, the Tribunal decided to remit the matter back to the CIT(Exemptions) for fresh consideration.
Key Issues
Whether the belated application for renewal of registration under Section 80G of the Income Tax Act, 1961, is liable to be rejected or can be condoned based on CBDT circulars.
Sections Cited
80G of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, “C’’ BENCH: BANGALORE
Before: SHRI CHANDRA POOJARI & SHRI KESHAV DUBEY
PER KESHAV DUBEY, JUDICIAL MEMBER:
This appeal by assessee is directed against the order of CIT(Exemptions), Bangalore dated 12.4.2024, wherein ld. CIT rejected the application for renewal of registration u/s 80G of the Income Tax Act, 1961 (in short “The Act”).
After hearing both the parties, we are of the opinion that similar issue came for consideration before this Tribunal in the case of M/s. Operational Research Society of India Karnataka in dated 4.6.2024 wherein the Tribunal held as under: 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 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 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 the present case also, the assessee made an application in form 10AB on 22.11.2023 for approval u/s 80G(5) of the Act. However, ld. CIT(A) observed that the assessee has obtained approval u/s 80G of the Act on 23.9.2021 (provisional from 23.9.2021 to assessment year 2024-25) by regulation of the provisional approval obtained u/s 80G of the Act, assessee filed application 22.11.2023 which is belated. Accordingly, he rejected the application of the assessee. In our opinion, as discussed by Tribunal in the case of M/s. Operational Research Society of India Karnataka cited (supra), the CBDT already condoned the delay in filing the application for approval u/s 80G(5) of the Act for renewal. Accordingly, we remit the issue back to the file of ld. CIT(Exemptions) on similar lines. CSP Foundation, Bangalore Page 3 of 3 4. In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 6th June, 2024