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Facts
The assessee, Shri Gurudarbar Seva Mandal, applied for renewal of registration under Section 12AB of the Income Tax Act, 1961. The application was made on 29.9.2023, selecting a sub-clause (ii) of clause (ac) of sub-section (1) of Section 12A, which the CIT(Exemptions) deemed incorrect, leading to the rejection of the registration.
Held
The Tribunal held that the rejection by the CIT(Exemptions) was not justified in light of CBDT Circular No. 7/2024 dated 25.4.2024. This circular extended the due date for filing Form No. IOAB and also provided for condonation of delay and correction of wrong section codes in applications.
Key Issues
Whether the rejection of registration under Section 12AB for selecting the wrong section code in Form 10AB was justified, considering the subsequent CBDT circular providing for condonation and extension of due dates.
Sections Cited
12AB, 12A, 119, 10, 80G, 35
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:
This appeal by assessee is directed against order of NFAC dated 18.3.2024, wherein registration u/s 12AB of the Income Tax Act, 1961 (in short “The Act”) is denied on the reason that assessee has selected the wrong section code while applying Form 10AB for registration u/s 12AB of the Act. 2. The assessee has raised following grounds: “Trust Shri Gurudarbar Seva Mandal, Belgaum applied for renewal of registration under section 12AB on 29.9.2023 while applying in column section code the mentioned sub clause (ii) of clause (ac) of sub section (1) of section 12A. In all other respects the trust had complied with provisions of section 12AB just or this technical breach the learned CIT(Exemptions) rejected the renewal of registration. We attach herewith order of IT Chennai wherein Hon. Tribunal has set aside the order of rejection.
ITA No.598/Bang/2024 Shri Gurudarbar Seva Mandal, Belgaum Page 2 of 4 3. We have heard the rival submissions and perused the materials available on record. In our opinion, the rejection made by the CIT(Exemptions) is not justified in view of the CBDT Circular No.7/2024 dated 25.4.2024, which reads as follows:
CIRCULAR NO. 712024 [F.NO. 173/25/2024-ITA-I] SECTION 119 OF THE INCOME-TAX ACT, 1961 - CENTRAL BOARD OF DIRECT TAXES INSTRUCTIONS TO SUBORDINATE AUTHORITIES - EXTENSION OF DUE DATE FOR FILING OF FORM NO. IOA 1 IOAB CIRCULAR NO. 712024 [F.NO. 173/2512024-ITA-I], DATED 25-4-2024 On consideration of difficulties reported by the taxpayers and other stakeholders in the electronic filing of Form No. IOA/IOAB, the Central Board of Direct Taxes (the Board) in exercise of its powers under section 119 of the Income-tax Act, 1961 (the Act) extended the due date for filing Fom No. IOA to 31-8-2021 by Circular No. 12/2021, dated 25-6-2021, to 31-3-2022 by Circular No. 16/2021, dated 29-8- 2021, to 25-112022 by Circular No. 22/2022. dated 1-11-2022 and further to 30- 9-2023 by CirculaÖN0. 6/2023. dated 24-52023, and extended the due date for filing Form No. IOAB to 30-9-2022 by Circular No: 8/2Q22, dated 31-32022 and further to 30-9-2023 by Circular No. 6/2023. dated 24-5-2023.
Representations have been received in the Board with a request to condone the delay in filing Form No. IOA/IOAB, as the same could not be filed in such cases within the last extended date, i.e., 30-9-2023. 3. On consideration of the matter, with a view to avoid and mitigate genuine hardship in such cases, the Board, in exercise of the powers conferred under section 119 of the Act, hereby extends the due date of making an application/intimation electronically in - (i) Form No. IOA, in case of an application under clause (i) of the first proviso to clause (23C) of section 10 or under sub-clause (i) of clause (ac) of sub-section (1) of section 12A or under clause (i) of the first proviso to sub-section (5) of section 80G or in case of an intimation under fifth proviso of sub-section (1) of section 35 of the Act, till 30-6- 2024; (ii) Form No. IOAB, in case of an application under clause (iii) of the first proviso to clause (23C) of section 10 or under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A or under clause (iii) of the first proviso to sub-section (5) of section 80G of the Act, till 30-6-2024. 4. It may be also noted that extension of due date as mentioned in paragraph 3(ii) shall also apply in case of all pending applications under clause (iii) of the first proviso to clause (23C) of section 10 or sub-clause (iii) of clause (ac) of sub- section (1) of section 12A or under clause (iii) of the first proviso to sub-section (5) of section 80G of the Act, as the case may be. Hence, in cases where any trust, institution or fund has already made an application in Form No. IOAB under the
ITA No.598/Bang/2024 Shri Gurudarbar Seva Mandal, Belgaum Page 3 of 4 said provisions on or before the issuance of this Circular, and where the Principal Commissioner or Commissioner has not passed an order before the issuance of this Circular, the pending application in Form No. IOAB may be treated as a valid application.
4.1 Further, in cases where any trust, institution or fund has already made an application in Form No. IOAB, 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. IOAB within the extended time provided in paragraph 3(ii) i.e. 30-6-2024. 5. It is also clarified that if any existing trust institution or fund who had failed to file Form No. IOA for AY 2022-23 within the due date as extended by the CBDT Circular No. 6/2023, dated 24-5-2023 and subsequently, applied for provisional registration as a new trust, institution or fund and has received Form No. IOAC, it can avail the option to surrender the said Form No. IOAC and apply for registration for AY 2022-23 as an existing trust, institution or fund in Form No. IOA within the extended time provided in paragraph 3(i) i.e. 30-6-2024.”
3.1 Accordingly, the issue in dispute is remitted to the file of CIT(Exemptions) for reconsideration to decide the same after giving an opportunity of hearing to the assessee. 4. In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 13th May, 2024
Sd/- Sd/- (Keshav Dubey) (Chandra Poojari) Judicial Member Accountant Member
Bangalore, Dated 13th May, 2024. VG/SPS
ITA No.598/Bang/2024 Shri Gurudarbar Seva Mandal, Belgaum Page 4 of 4
Copy to:
The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order
Asst. Registrar, ITAT, Bangalore.