VIDIVUKAALAM FOUNDATION,CHENNAI vs. CIT EXEMPTIONS, CHENNAI

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ITA 1037/CHNY/2024Status: DisposedITAT Chennai27 June 2024Bench: SHRI ABY T. VARKEY (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)3 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that CBDT Circular No. 7/2024 extended the due date for filing Form 10A/10AB to June 30, 2024, and allowed for fresh applications even if previously rejected. Since the assessee intended to file a fresh application within the extended period, the appeal was rendered infructuous.

What were the facts?

The assessee, Vidivukaalam Foundation, sought approval under Section 80G(5)(iii) of the Income Tax Act. Their application was rejected by the CIT(E) for not filing Form 10AB within the prescribed time, leading to the cancellation of provisional approval.

What were the issues?

Whether the rejection of the application for approval under Section 80G was sustainable in light of the subsequent CBDT circular extending the filing deadline and allowing fresh applications.

Which sections of the Income-tax Act were involved?

Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & SHRI MANOJ KUMAR AGGARWAL

For Respondent: Shri S.Maruthu Pandian, CIT
Hearing: 24.06.2024Pronounced: 27.06.2024

आदेश / O R D E R

PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemption), (hereinafter in short "theLd.CIT(E)”), Chennai, dated 23.02.2024 rejecting the approval sought under clause (iii) of first proviso to sub-sec.(5) of sec.80G of the Income Tax Act, 1961 (hereinafter in short "the Act”). (AY -) M/s.Vidivukaalam Foundation :: 2 ::

2.

At the outset, the Ld.AR of the assessee submitted that the assessee was granted provisional approval u/s.80G(5)(iv) of the Act and therefore, was required to file an application for regular registration for a period of ‘five’ years; and therefore, filed an application on 09.08.2023, which was rejected by the Ld.CIT(E) citing that assessee has not filed Form 10AB u/s.80G(5)(iii) of the Act, within the time limit prescribed therein and therefore, he rejected it as not maintainable and in that process, provisional approval granted was also cancelled. According to the Ld.AR, the CBDT has issued Circular No.7/2024 dated 25.04.2024 extending the due date for filing Form 10A/10AB, wherein, the time limit has been extended till 30.06.2024, even if any application in Form 10AB of any Trust/Institution has been rejected by the PCIT/Ld.CIT(E) on or before issuing of the CBDT Circular (No.7/2024) on account of (i) application was furnished after the due date or (ii) application has been furnished under the wrong section.

3.

And in such an event, the assessee has been given opportunity to furnish fresh application in Form 10AB within the extended time provided in Para No.3(ii) i.e. till 30.06.2024; and since, in the assessee’s case falls in Para No.4.1 of the ibid Circular No.7/2024 dated 25.04.2024 (supra), the assessee has sought fresh registration and therefore, the present appeal is infructuous. (AY -) M/s.Vidivukaalam Foundation 4. The Ld.CIT-DR didn’t object the contention of the Ld.AR and therefore, we treat the appeal of the assessee as infructuous.

5.

In the result, appeal filed by the assessee is dismissed as infructuous.

Order pronounced on the 27th day of June, 2024, in Chennai.

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