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Facts
The assessee, Sri Sri Krupa Charitable Trust, filed an application in Form 10AB on 27.9.2023 for approval under section 80G of the Act. This application was filed after the expiry of its provisional approval obtained in Form 10AC on 9.7.2021. The CIT (Exemptions) rejected the application as belated.
Held
The Tribunal noted that the delay in filing the application was condoned by the CBDT vide Circular No.7/2024 dated 25.4.2024, which extended the due date for filing Form 10AB to 30th June 2024. Considering this circular, the Tribunal decided to remit the issue back to the CIT for fresh consideration.
Key Issues
Whether the application for approval under Section 80G filed by the assessee was belated and liable for rejection, or if the CBDT circular condoning such delays is applicable.
Sections Cited
80G, 10(23C), 12A, 35
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C’’ BENCH: BANGALORE
Before: SHRI CHANDRA POOJARI & SHRI SOUNDARARAJAN K.
PER CHANDRA POOJARI, ACCOUNTANT MEMBER:
This appeal filed by the assessee is directed against the order of CIT(Exemptions) Bangalore dated 22.2.2024, wherein he rejected the application filed in form 10AB dated 27.9.2023 on the reason that it has been belatedly filed by the assessee. 2. Facts of the case are that the assessee filed Form 10AB dated 28.9.2023 for approval u/s 80G of the Act. The assessee originally obtained approval u/s 80G of the Act in Form 10AC dated 9.7.2021 (provisional from assessment year 2021-22 to 2023-24). For regulation of provisional approval obtained u/s 80G of the Act, assessee filed application in form 10AB filed on 27.9.2023 i.e. after the expiry of the provisional approval period and also application is filed u/s 80G(5) (ii) of the Act. As per provision to section 80G(5) of
ITA No.766/Bang/2024 Sri Sri Krupa Charitable Trust, Bangalore Page 2 of 3 the Act, the institution was to make an application for grant of approval under clause (iii) where the institution or fund has been provisionally approved atleast 6 months prior to expiry of period of provisional approval or within 6 months of this commencement of its activities, whichever is earlier. According to this section, assessee ought to have been made application on or before 30.9.2022. However, the application in the present case was made on 27.9.2023, which is belated. Accordingly, CIT (Exemptions) rejected the approval sought for u/s 80G of the Act. Against this assessee is in appeal before us. 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:
ITA No.766/Bang/2024 Sri Sri Krupa Charitable Trust, Bangalore Page 3 of 3 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. 4. In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 4th June, 2024
Sd/- Sd/- (Soundararajan K.) (Chandra Poojari) Judicial Member Accountant Member
Bangalore, Dated 4th June, 2024. VG/SPS
Copy to:
The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order
Asst. Registrar, ITAT, Bangalore.