ELIXIR WELFARE FOUNDATION ,CHENNAI vs. CIT (EXEMPTIONS), CHENNAI

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ITA 447/CHNY/2024Status: DisposedITAT Chennai06 May 2024Bench: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI (Judicial Member)3 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted a recent CBDT circular extending the time limit for such applications to 30.06.2024. Consequently, the impugned order was set aside, and the CIT(E) was directed to consider the application on its merits.

What were the facts?

The assessee trust filed an application for approval under Section 80G in Form No.10AB after the stipulated time limit. The CIT(E) rejected the application as time-barred, noting that the assessee commenced activities on 29.08.2022 and filed the application on 12.06.2023, exceeding the six-month window.

What were the issues?

Whether the application for approval under Section 80G was time-barred. Whether a recent CBDT circular could be applied to extend the timeline for the application.

Which sections of the Income-tax Act were involved?

Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM

आयकर अपीलीय अिधकरण ‘ए’ �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय +ी मनोज कुमार अ/वाल ,लेखा सद4 एवं माननीय +ी मनु कुमार िग7र, �ाियक सद4 के सम8। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं./ M/s. Elixir Welfare Foundation CIT-Exemptions W-770, 1st Floor, 9th Street, Chennai. बनाम/ Syndicate Bank Colony, Vs. Anna Nagar West, Extension, Chennai – 600 101. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AABTE-2759-D (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : Shri D. Anand (Advocate) – Ld. AR � थ�कीओरसे/Respondent by : Shri Nilay Baran Som (CIT) - Ld. Sr. AR सुनवाई की तारीख/Date of Hearing : 30-04-2024 घोषणा की तारीख /Date of Pronouncement : 06-05-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

Aggrieved by rejection of an application filed in Form No.10AB on 12.06.2023 for seeking approval under clause (iii) of first proviso to sub- section (5) of Sec.80G vide impugned order dated 28-12-2023, the assessee is in further appeal before us.

2.

From the record, it emerges that the assessee trust filed an application in Form No.10AB on 12.06.2023 seeking registration under clause (iii) of first proviso to sub-section (5) of Sec.80G. It transpired that the assessee trust was incorporated on 10.06.2022 and it commenced its activities on 29.08.2022. The assessee was granted provisional approval in Form No.10AC u/s 80G(5)(iv) for the period commencing from 16.05.2023 to AY 2026-27. The first proviso to Sec. 80G(5), provide timeline for an application to be filed under clause (iii) of first proviso to sub-section (5) of Sec.80G. As per sub-clause (iii) of this proviso, the assessee was required to file this application at least before 6 months prior to expiry of provisional approval or within 6 months from the date of commencement of its activities, whichever is earlier. The said timeline was mandatory in nature. As against this, the assessee filed application on 12.06.2023 which was much after expiry of 6 months from commencement of its activities. Accordingly, it was held by Ld. CIT(E) that the application was time barred and liable to be rejected. 3. The Ld. CIT(E) also noted that under the new regime, CBDT, on multiple occasions, extended time limit for filing the application in Form No.10A and / or 10AB. The latest Circular No.08 of 2022 dated 31.03.2022 extended the time limit to 30.09.2022 beyond which there was no further extension. This was evident from subsequent CBDT Circular No.22/2022 dated 01.11.2022 through which CBDT extended time limit for filing application in Form No.10A under various Sections, up-to 25.11.2022. However no further extension was granted for filing of Form No.10AB. Also, CBDT issued another Circular No.6/2023 on 24.05.2023 extending due date for filing application in Form No.10AB from 30.09.2022 to 30.09.2023 only in respect of trusts / institutions registered u/s 10(23C) and 12AB. The said Circular did not mention any such extension of due date for filing Form No.10AB to get approval u/s 80G. Therefore, the application was treated as time barred and rejected as non-maintainable. Aggrieved, the assessee is in further appeal before us. 4. We take note of the recent Circular No.07/24 issued by CBDT on 25.04.2024 extending time limit for all such applications to 30.06.2024. Therefore, we set aside the impugned order and direct Ld. CIT(E) to consider the application on merits without raising the issue of timeline. 5. The appeal stand allowed for statistical purposes. Order pronounced on 6th May, 2024

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