KOVAI MAKKAL SEVAI MAIYAM,COIMBATORE vs. CIT EXEMPTIONS, CHENNAI

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ITA 952/CHNY/2024Status: DisposedITAT Chennai23 August 2024Bench: SHRI ABY T. VARKEY (Judicial Member), SHRI JAGADISH (Accountant Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee had filed a fresh application as per a recent CBDT circular, which was pending. Therefore, the Tribunal set aside the CIT(E)'s order and restored the matter for fresh consideration on merits.

What were the facts?

The assessee trust applied for regular approval under Section 80G(5)(ii) of the Income Tax Act, 1961, but the CIT(E) rejected it, stating the application was for re-approval of already approved cases. The assessee had only received provisional approval.

What were the issues?

Whether the application for regular approval under Section 80G(5)(ii) was maintainable when the assessee had only provisional approval. The impact of a subsequent application filed under a new CBDT circular.

Which sections of the Income-tax Act were involved?

Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & SHRI JAGADISH

Hearing: 19.07.2024Pronounced: 23.08.2024

आदेश / O R D E R

PER ABY T. VARKEY, JM:

1.

This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemptions), (hereinafter in short "the Ld.CIT(E)”), Chennai, dated 14.12.2023 rejecting application filed by the assessee seeking approval u/s.80G(5) of the Income Tax Act, 1961 (hereinafter in short "the Act”).

2.

At the outset, we note that there is delay of ‘56’ days in filing this appeal. Having gone through the contents of the application for (AY -) Kovai Makkal Sevai Maiyam :: 2 ::

1. condonation of delay, we are satisfied that there was sufficient cause for condoning the delay and we condone the delay and proceed to adjudicate with the grounds of appeal of the assessee.

3.

The brief facts are that the assessee Trust was incorporated on 10.10.2018 and had filed application dated 22.03.2022 for registration u/s.80G(5)(iv) of the Act in Form 10A and was granted provisional approval u/s.80G(5)(iv) of the Act on 29.03.2022 to AY 2024-25.

Thereafter, the assessee filed an application on 30.06.2023 for regular approval u/s.80G(5)(ii) of the Act instead of filing its application under clause (iii) of first proviso to sec.80G(5) of the Act. According to the Ld.CIT(E), the assessee has erroneously filed the application dated 30.06.2023 in Form 10AB seeking regular approval under clause (ii) of first proviso to sec.80G(5) of the Act which covers the cases, which are already approved and which seeks re-approval. Since, the assessee has been granted only provisional approval, according to the Ld.CIT(E), the application filed on 30.06.2023 is not maintainable and passed the impugned order dated 14.12.2023.

4.

It has been brought to our notice that the assessee has filed another application on 04.06.2024 for regular registration u/s.80G of the Act as per Circular No.07/2024 dated 25.04.2024, which application is pending before the Ld.CIT(E) as on date.

(AY -) Kovai Makkal Sevai Maiyam :: 3 ::

5.

In the light of the aforesaid contemporary developments brought to our notice and taking note of the CBDT Circular No.7/2024 dated 25.04.2024, wherein, the CBDT has extended the time limit to file such applications before 30.06.2024; and taking note that the assessee has filed application on 04.06.2024 which is pending for orders of the Ld.CIT(E) on merits, we set aside the impugned order of the Ld.CIT(E) dated 14.12.2023 and restore the matter of approval back to his file and the Ld.CIT(E) may consider any one of the applications of the assessee on merits [whichever the system/software permits]. The assessee can pursue the application filed as noted (supra) before the Ld.CIT(E) and the Ld.CIT(E) to pass order on merits, in accordance to law.

6.

In the result, appeal filed by the assessee is allowed for statistical purposes.

Order pronounced on the 23rd day of August, 2024, in Chennai.

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