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Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH, KOLKATA
Before: SRI RAJESH KUMAR & PRADIP KUMAR CHOUBEY
order
: July 24th, 2024 ORDER
Per Pradip Kumar Choubey, Judicial Member:
The instant appeal filed by the assessee is directed against the order passed by ld. Commissioner of Income-tax (Exemption), Kolkata [in short ld. ‘CIT (Exemption)’] in relation to registration applied u/s 80G(5)(iii) of the Income Tax Act, 1961 (in brevity the ‘Act’) dated 04.03.2024.
The brief facts of the case of the appellant are that the assessee was granted provisional approval u/s 80G(5)(iv) of the Act in Form-10AC vide order dated 31.05.2022 for a period from 31.05.2022 to AY 2025-26. Subsequently, an application for approval of the Trust u/s 80G(5)(iii) of the Act was filed on I.T.A. No.: 665/KOL/2024 Assessment Year: N.A. Amar Baani. 20.09.2023 by the assessee in Form-10AB under Rule 17A of the Income Tax Rules, 1962. The said application filed in Form-10AB u/s 80G(5)(iii) of the Act has been rejected by the ld. CIT (Exemption) thereby saying that it is not maintainable and provisional certificate issued to the assessee has also been cancelled thereby holding that the application filed in Form-10AB is not within the time limit prescribed. The ld. Counsel for the assessee has challenged the impugned order thereby submitting that the ld. CIT (Exemption) was not justified in rejecting the application for grant of approval u/s 80G(5)(iii) of the Act filed by the assessee in Form-10AB under Rule 17A of the Rules. He has placed the decision of the Coordinate Bench of this Tribunal in the case of Loyola Charitable Society vs. CIT(Exemption), Kolkata in order dated 19.06.2024 and other judgments of this Tribunal.
The ld. D/R supports the impugned order.
We have perused the order of the ld. CIT (Exemption) and find that ld. CIT (Exemption) has held thus- “10. From the above, it is evident that the time limit prescribed u/s 80G(5)(iii) of the Act for filing Form No.10A and 10AB, as the case may be is mandatory and therefore, after considering the hardship to the assessee the CBDT extended the said time limit on multiple occasions, for filing Form No. 10A and 10AB, u/s 119 of the Act, vide above referred Circulars. As per above referred CBDT Circular No.8/2022, the applicant/assessee, whose last date for filing Form No. 10AB for registration u/s 10(23C)/12A/80G was falling on or before 29th September 2022, was extended up to 30th September 2022. Thereafter, there was no further extension for delay in filing Form No. 10AB was granted by the CBDT and the same is evident from CBDT Circular No. 22/2022 dated 01st November, 2022, through which the CBDT extended the time limit for filing application in Form No. 10A under various sections made therein, up to 25.11.2022, and further in said Circular No. 22/2022, no further extension of time was granted for filing Form No. 10AB.
From the above, it is evident that the activities of the applicant/assessee had already commenced and the present application filed in Form No.10AB u/s 80(5)(iii) of the Act has not been filed within the time limit prescribed therein and therefore the same is liable to be rejected as such as non- maintainable, without going into the merits.”
I.T.A. No.: 665/KOL/2024 Assessment Year: N.A. Amar Baani. 4.1. On perusal of the documents filed by the assessee it appears as following: a) Form-10AC i.e. application for provisional approval from 31.05.2022 to AY 2025-26 u/s 80G(5)(iv) of the Act. b) Form-10AB filed on 20.09.2023. c) Circular No. 7/2024 dated 25.04.2024. d) Form-10AB filed on 23.05.2024. 4.2. On perusal of the documents filed as above, it appears to us that after considering the application of the applicant and material available in the record, the assessee has been granted provisional approval dated 31.05.2022. The assessee has also filed Form-10AB on 20.09.2023. As per the CBDT Circular No. 7/2024 it admits of no doubt that time for filing for registration has been extended by the Department of Revenue, CBDT. We have also perused the cited decision of the assessee and find that the similar issue has come up before the Coordinate Bench and he considering the other judgment of the Coordinate Bench in the case of Friends of Kolkata vs. CIT (Exemption), Kolkata in order dated 01.04.2024 held that— “Since it was a technical error due to change in the procedure, therefore, the same is liable to be corrected. Respectfully following the above decisions of the Coordinate Benches, cited supra, we allow the appeal and direct the Ld. CIT(E) to consider the application filed by the assessee in Form 10AB as being filed in the relevant prescribed Form which is required for making application for the institutions which are already registered on 01.04.2021 subject to the verification that approval u/s. 80G(5) was granted prior to 01.04.2021 as well and if it is so, the application filed by the assessee will be treated as filed under clause (i) of the first proviso to sec. 80G(5) of the Act. The Ld. CIT(E) will decide the application of the assessee within two months of the receipt of this order in accordance with law.” 4.3. The present case in hand is squarely covered with the judgment of the Coordinate Bench of this Tribunal and accordingly, the appeal is hereby allowed. Ld. CIT (Exemption) is directed to decide the application of the assessee within two months of the receipt of this order in accordance with law. Page 3 of 4 I.T.A. No.: 665/KOL/2024 Assessment Year: N.A. Amar Baani.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 24th July, 2024. Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member Dated: 24.07.2024 Bidhan (P.S.) Copy of the order forwarded to:
1. 1. Amar Baani, C/o Subash Agrawal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite 213, 2nd Floor, Kolkata, West Bengal, 700069.
2. CIT (Exemption), Kolkata.
3. CIT(A)- 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata.