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Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI
Before: SHRI MAHAVIR SINGH & SHRI S.R. RAGHUNATHA
आदेश आदेश /O R D E R आदेश आदेश
PER MAHAVIR SINGH, VICE PRESIDENT:
This appeal by the assessee is arising out of the order of the
Commissioner of Income Tax (Exemption), Chennai dated
31.05.2023 rejecting Form No.10AB filed for seeking
registration/approval/recognition u/s.12A(1)(ac)(iii) of the Income
Tax Act, 1961 (hereinafter the ‘Act’). At the outset, it is noticed that
appeal is barred by limitation of 269 days. As per Form 36, the
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assessee received order of the CIT(E) passed u/s.80G(5)(iv) of the
Act dated 31.05.2023 on 31.05.2023 itself. The appeal has to be
filed before the Tribunal on or before 30th July, 2023, but, actually it
was filed only on 24.04.2024, thereby there was delay of 269 days.
The assessee filed condonation petition stating following reasons:
“In this regard, it is submitted that the Appellant Trust filed Form 10A on 24.05.2023 under wrorig clause 80G(5)(iv) instead of 80G(5)(iii) and therefore, the appellant was granted provisional registration for three years from 31.05.2023 instead of granting the same from 01.04.2023 thereby denying the benefit of 80G during the intervening period. The impact of grant of the provisional registration from 31.05.2023 was not properly understood and therefore no appeal was filed against the order granting provisional registration.
Subsequently, in order to make application for final registration, the Managing Trustee and the Chartered Accountant had approached the Counsel on Record for seeking advice. It was only at this juncture, the Managing Trustee was brought to the notice of the provisions of Section 80G for registration under new regime. The Managing Trustee immediately took steps and had filed the appeal with the help of Counsel on Record on 31.05.2023.
In such circumstances, the Appellant submits that the transition to electronic regime coupled with provisions pertaining to the new regime of registration (transition from old regime) would constitute the reasonable cause for the delay in filing the captioned appeal and pleads for condoning the small delay of 279 days in filing the appeal under consideration in the interest of justice for adjudicating the issues on merits.”
When these were confronted, the Sr. DR opposed for
condonation of delay. On going by the reasons stated, we consider
the cause as reasonable and hence, delay is condoned and appeal is
admitted.
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The only issue in this appeal of the assessee is as regards to
order of CPC., Bengaluru in denying provisional recognition by
overlooking the existence of registration in terms of section 80G(5)
of the Act by virtue of which bonafide mistake committed by the
assessee while uploading Form No.10AB for full recognition. For this,
the assessee has raised various grounds which are argumentative,
factual and exhaustive and hence these need not be reproduced.
We have heard rival contentions and gone through facts and
circumstances of the case. It is an undisputed fact that the
assessee has applied for registration and already granted provisional
registration u/s.80G(5) of the Act on 09.07.2021, which was
restricted in granting provisional recognition again in the impugned
order dated 31.05.2023. The counsel for the assessee only stated
that the assessee has already applied for registration within the
time limit extended by CBDT vide circular No.7/2024 dated
25.04.2024 extending the time limit upto 30-06-2024 and hence,
he requested that matter can be restored back to the file of the
CIT(E).
On the other hand, the Sr.DR submitted that once the assessee
has applied afresh in term of CBDT Circular No.7 of 2024 dated
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this appeal and this has become academic and infructuous.
After hearing rival submissions and going through facts and
circumstances of the case, we are of the considered view that since
the assessee has applied afresh, the CIT(E) is directed to consider
this application, de-hors this appeal and will decide the issue on
merits taking that as a fresh application complied in lieu of
extended date of CBDT circular no.7 of 2024 dated 25.04.2024.
Hence, this appeal is dismissed as infructuous.
In the result, the appeal filed by the assessee is dismissed as
academic.
Order pronounced in the open court on 11th July, 2024 at Chennai.
Sd/- Sd/- (महावीर �सह ) (एस.आर. रघुनाथा) (MAHAVIR SINGH) (S.R. RAGHUNATHA) उपा�य� /VICE PRESIDENT लेखा सद�य/ACCOUNTANT MEMBER चे�ई/Chennai, �दनांक/Dated, the 11th July, 2024 DS आदेशक��ितिलिपअ$ेिषत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकरआयु% /CIT, Chennai 4. िवभागीय�ितिनिध/DR 5. गाड*फाईल/GF.