KURAL ARAM FOUNDATION,CHENNAI vs. THE CIT (EXEMPTIONS), CHENNAI

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ITA 1096/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 10AB to June 30, 2024, even for applications rejected before the circular. The assessee was given an opportunity to file a fresh application.

What were the facts?

The assessee's application for regular registration under Section 80G(5)(iii) was rejected by the CIT(E) for not filing Form 10AB within the prescribed time. The assessee had previously received provisional approval under Section 80G(5)(iv).

What were the issues?

Whether the rejection of the application for registration under Section 80G was valid given the subsequent CBDT circular extending the filing deadline.

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

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 "the Ld.CIT(E)”), Chennai, dated 18.03.2024 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”).

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 (AY -) Kural Aram Foundation :: 2 ::

1.

therefore was required to file an application for regular registration for a period of ‘five’ years; and therefore, filed an application on 27.09.2023, which was rejected by the Ld.CIT(E) citing the reason 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, the 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 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, 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.

4.

The Ld.CIT-DR didn’t object to the contention of the Ld.AR and therefore, we treat the appeal of the assessee as infructuous. (AY -) Kural Aram Foundation 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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