THIRUMURUGAN KALVI ARAKKATTALAI,PULUVAPATTI vs. CIT, EXEMPTIONS,, CHENNAI

आयकर अपीलीय अिधकरण ‘‘बी’’’ �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय �ी मनु कुमार िग�र, �ाियक सद� एवं माननीय �ी जगदीश, लेखा सद� के सम�। BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI JAGADISH, ACCOUNTANT MEMBER आयकरअपील सं./ Thirumurugan Kalvi Arakkattalai, Vs. The Commissioner of Income Tax, 8/507, G.N. Garden, (Exemption) Neruperichal, Chennai. Pooluvapatti 641 602. [PAN: AABTT 7977L] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Shri N. Vijay Kumar, CA ��यथ� क� ओर से /Respondent by : Shri. V. Justin, IRS, JCTI. सुनवाई क� तार�ख/Date of Hearing : 22.07.2024 घोषणा क� तार�ख /Date of Pronouncement : 26.07.2024 आदेश / O R D E R MANU KUMAR GIRI (Judicial Member)

Aggrieved by rejection of application filed in Form No.10AB on 30.09.2023 for seeking approval under clause (iii) of first proviso to subsection (5) of Sec.80G vide impugned order dated 16.03.2024, the assessee is in further appeal before us.

and also for filing Form No.10A for recognition u/s.80G of the Act extended up to 30.09.2023 for trusts filing registration under clause (i) of first proviso to section 80G(5) of the Act, we find no difference in continuing hardship as recognized by CBDT even in filing Form No.10AB for renewal of recognition u/s.80G of the Act under clause (iii) of first proviso to section 80G(5) of the Act. In our view, this being a genuine hardship case, which is recognized by Revenue or CBDT by issuing a general circular, we are of the view that this specific provision of clause (iii) to first proviso to section 80G(5) cannot be excluded and or it has not been the intention of the CBDT while issuing the circular. There cannot be a distinction within the same provision without bringing out any exception and even this provision is for the benefit of the donors who are donating money to the charitable trusts for claiming exemption in their returns of income. In our view, we agree with the argument of ld. counsel for the assessee that the timeline prescribed under clause (iii) of first proviso to section 80G(5) of the Act should be treated as directory and not mandatory especially considering the transitional nature of the amendment as brought out by the taxation of other laws (relaxation and amendment of certain provisions) act 2020 for bringing new regime. Hence, in our view, the CIT(Exemptions) should not have rejected the assessee’s application in Form No.10AB only for this technical reason. We are of the view that the intention of CBDT in its circular clearly reflects their mind that once the timeline prescribed for filing Form No.10AB for recognition u/s.12A of the Act has beenextended up to 30.09.2023, the same may be treated as extended for forms namely Form No.10AB for renewal of approval/recognition/registration under clause (iii) of first proviso to section 80G of the Act also. Hence, we accept the plea of assessee and agree with the arguments of ld. counsel for the assessee and remand the matter back to the file of the CIT(Exemption) to decide the issue on merits. Hence, the order of CIT(Exemption) on this issue is set aside and matter is remanded back to the file of the CIT(Exemption) for redeciding the issue on merits as per law. The appeal of the assessee is allowed for statistical purposes.” The bench thus held that the extended time limit of 30.09.2023 as per CBDT Circular would apply to Form No.10AB as well.

7. In the result, these Writ Petitions are allowed on the following terms: - (i) The clause 5(ii) of Circular No.6 of 2023 bearing F.No.370133/06/2023-TPL, dated 24.05.2023 of the first respondent is declared as illegitimate, arbitrary, and ultra vires the Constitution of India; (ii) The respondents are directed to consider the applications submitted by the petitioners as to the recognition/approval in respect of clause (i) of the first proviso to sub-section (5) of section 80G of the Act as within time and consider the same and pass orders thereon on merits, in accordance with law within six months from the date of receipt of a copy of this order.

“3. On consideration of the matter, with a view to avoid and mitigate genuine hardship in suchcases, the Board, in exercise of the powers conferred under section 119 of the Act, hereby extends thedue date of making an application/intimation electronically in - (i) Form No. 10A, in case of an application under clause (i) of the first proviso to clause (23C) ofsection 10 or under sub- clause (i) of clause (ac) of sub-section (1) of section 12A or under clause (i) ofthe first proviso to sub-section (5) of section 80G or in case of an intimation under fifth proviso of subsection(I) of section 35 of the Act, till 30.06.2024; (ii) Form No. 10AB, 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 ( I) of section 12A or underclause (iii) of the first proviso to sub-section (5) of section 80G of the Act, till 30.06.2024. ….……………………….. ….……………………….. 4.1 Further, in cases where any trust, institution or fund has already made an application in FormNo.10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting suchapplication, on or before the issuance of this Circular, solely on account of the fact that the applicationwas furnished after the due date or that the application has been furnished under the wrong sectioncode, it may furnish a fresh application in Form No. 10AB within the extended time provided inparagraph 3(ii) i.e. 30.06.2024.

Order pronounced in open court on 26th July, 2024 at Chennai.