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Facts
The appellant, a charitable trust, filed an application in Form 10AB seeking approval under section 80G of the Income Tax Act. The application was rejected by the CIT(Exemption) on the grounds that it was filed after the prescribed period and that the appellant failed to prove the commencement of activities. Subsequently, the appellant filed a fresh application as per a CBDT circular.
Held
The Tribunal noted that the appellant had filed a fresh application based on a CBDT circular, rendering the current appeal infructuous. Therefore, the appeal was dismissed without prejudice to the merits of the fresh application.
Key Issues
Whether the appeal is infructuous due to the filing of a fresh application, and if the CIT(E) should decide the fresh application on its merits.
Sections Cited
80G(5), 80G
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Income Tax Appellate Tribunal, JAIPUR BENCHES, “ A-Bench” JAIPUR
Before: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 417/JPR/2024
vkns'k@ORDER PER: NARINDER KUMAR, J.M.
On 21.02.2024, learned CIT(Exemption), Jaipur, rejected an application filed by the appellant in Form 10 AB, as prescribed under the Income Tax Act (hereinafter referred to as “the Act”).
It came to be rejected on the ground that same was filed after the prescribed period i.e. on expiry of 6 months counted from the date of grant of provisional approval. failed to prove commencement of activities, one of the essentials for grant of registration under the Act.
Learned CIT(E), while referring to the 2nd proviso to section 80G(5) of the Act observed that the applicant also failed to furnish proper justification for regularization of the provisional approval.
The applicant claims itself to be a charitable trust. As claimed in the application, the applicant alleged to have commenced its activities on 24.02.2022. It submitted application on 07.08.2023, in Form No. 10AB, seeking approval u/s 80G of the Act. In this way, Form No. 10AB came to be filed after 6 months of the said commencement of the activities.
Vide impugned order, not only the application stands rejected, the provisional approval already granted to the applicant also stands cancelled.
Feeling aggrieved by the impugned order passed by ld. CIT(E), applicant is before this Appellate Tribunal. appellant has submitted an application seeking withdrawal of this appeal on the basis of CBDT Circular No. 07/2024, dated 25.04.2024.
Learned AR for the appellant has submitted that in view of above Circular dated 25.04.2024, CBDT has allowed such-like applicants to furnish afresh application in form 10AB up to 30.06.2024, and, accordingly, the applicant has presented afresh application in the prescribed format.
Learned DR for the department has referred to the relevant dates i.e. date of granting of provisional registration and date of commencement activities, as per claim of the applicant. He contended that when the applicant has already filed afresh application in form 10AB as per Circular dated 25.04.2024, it is for Learned CIT(E) to decide such application afresh in accordance with law, and this appeal deserves to be dismissed as having become infructuous, and not on merits.
In the given facts and circumstances, when the applicant has already presented afresh application under the Act, present appeal challenging the impugned order dated 21.02.2024 has become infructuous. presented by the applicant in accordance with law.
As a result, present appeal is dismissed as having become infructuous, but, Learned CIT(E) to dispose of the fresh application presented by the applicant in accordance with law and after affording reasonable opportunity of being heard, to the applicant.
Order pronounced in the open court on 03/06/2024.
Sd/- Sd/- ¼jkBkSM+ deys'k t;UrHkkbZ ½ ¼ujsUnz dqekj½ (RATHOD KAMLESH JAYANTBHAI) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 03/06/2024 *Ganesh Kumar, Sr. PS आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू The Appellant- Late Shri Banshidhar Gupta Memorial Charitable Trust, Jaipur. 1. izR;FkhZ@ The Respondent- CIT Exemption, Jaipur 2. vk;dj vk;qDr@ The ld CIT 3. 4. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. xkMZ QkbZy@ Guard File By order,
सहायक पंजीकार@Aेेजज. त्महपेजतंत