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Facts
The assessee's application for approval under Section 80G of the Income Tax Act, 1961, was rejected by the CIT(E) because it was filed on 30.09.2023, after the expiry of the provisional approval period and the due dates specified. The assessee argued that a fresh application could be filed within an extended deadline of 30.06.2024 as per a CBDT press release.
Held
The Tribunal referred to a CBDT press release dated 25.04.2024 which clarified that applications rejected solely for late filing could be refiled by 30.06.2024. The Tribunal also relied on a Bangalore Bench order with identical facts, which remitted the issue for fresh consideration.
Key Issues
Whether the assessee's application for approval under Section 80G, filed after the due date, could be considered for refiling based on a subsequent CBDT press release.
Sections Cited
80G, 80G(5)
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 26.03.2024 wherein the CIT(E) rejected the application for approval under section 80G of the Act. The reasons for rejection of approval under section 80G of the Act was that assessee had not filed application in Form 10AB within the due dates specified but only on 30.09.2023 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.767/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 approval 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 30.09.2023 for approval u/s 80G of the Income tax Act, 1961, assessee was granted opportunity of being heard vide notices dated 11.12.2023 and 20.01.2024, 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, Sri. Venkatesh Bhat, Chartered Accountant and AR of the assessee appeared on 07.02.2024 and 21.03.2024 and submitted the details. 2. From the submissions, it is seen that assessee has obtained approval u/s.80G in Form No.10AC dated 09.07.2021 (provisional from A Y 2021- 22 to 2023-24). For regularization of the provisional approval obtained u/s.80G, assessee filed application in Form No.10AB only on 30.09.2023 i.e. after the expiry of the provisional approval period. 3. As per proviso to Section 80G(5) of the Act, the institution/fund shall make an application for grant of approval "(ill) 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 before 30.09.2022. However, in the present case, assessee has made the application in Form No.10AB only on 30.09.2023. Thus the application is made belatedly. 4. As per the CBDT Circular 6 of 2023 dated 24.05.2023, time limits has been extended only for applications seeking regularization of registration u/s. 12AB obtained provisionally and not for approval u/s. 80G of the Act.
ITA No.767/Bang/2024 Page 3 of 4
In view of the above, the application filed in FormNo.10AB dated 30.09.2023 for approval u/s.80G of the Act, is hereby rejected.”
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:
“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 code, may also submit fresh application in Form 10AB within the aforesaid extended deadline of 30th June, 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 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.”
ITA No.767/Bang/2024 Page 4 of 4
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: 04.06.2024. /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.