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Income Tax Appellate Tribunal, “A” BENCH: KOLKATA
Before: Shri Rajesh Kumar & Shri Sonjoy Sarma]
ORDER / आदेश Per Rajesh Kumar, AM:
This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Exemption)-Kolkata (hereinafter referred to as the Ld. CIT(A)”] dated 21.12.2023 for the AY Nil.
At the outset we observe that there is a delay of 1 day in filing the appeal. The ld Counsel of the assessee has explained the delay. Accordingly the delay is condoned and the appeal is admitted for adjudication.
2 Assessment Year: Nil The Advocate Association of Bengal 3. The only issue raised in the various grounds of appeal is against the order of Ld. CIT(E), Kolkata not granting the approval u/s 80G(5)(iii) of the Act on the ground that the application filed in Form 10AB u/s 80G(5)(iii) was not maintainable.
Facts in brief are that the assessee was granted provisionalapproval u/s 80G(5)(iii) of the Act in Form 10AC vide order dated 07.04.2022 for a period from 07.04.2022 to AY 2024-25. Thereafter an application for approval of the trust u/s 80G(5)(iii) of the Act was electronically filed on 14.06.2023 in Form 10AB under Rule 17A of the Income Tax Rules, 1962(hereinafter referred to as Rules). The Ld. CIT(E), after calling for reply and explanation on the point and after taking into account various evidences filed by the assessee, observed that the provisions of Section 80G(5)(iii) stipulate a time limit within which the assessee is required to file application u/s 80G(5)(iii) of the Act whereas the assessee has filed application on 14.06.2023 which is beyond the time frame as mentioned in that Section. The Ld. CIT(E) further observed that the assessee was required to file application in Form 10AB u/s 80G(5)(iii) within a time period of six months of the commencement of its activities or before the expiry of six months prior to expiry of the period of the provisional registration whichever is earlier. The ld CIT(A) also noted that the filing of application for approval within such time is mandatory and he has no power under the Act to condone the delay in filing the said application. Accordingly he dismissed the application as not maintainable.
After hearing the rival contentions and perusing the material on record, we find that the assessee is duly registered u/s 12AA of the Act enjoying exemption u/s 80G(5) of the Act. We note that the assessee is an old one and the activities of the institution were started long ago.We are also mindful of the recent CBDT F. No. 173/25/2024-ITA-I, Circular no. 7/2024 dated 25.04.2024 allowing the various trust/institution file application for approval u/s 80(5) electronically up to 30.06.2024. The said circular is extracted below:
3 I Assessment Year: Nil The Advocate Association of Bengal The Advocate Association of Bengal
4 I Assessment Year: Nil The Advocate Association of Bengal The Advocate Association of Bengal We note that since the assessee is duly registered u/s 12AA We note that since the assessee is duly registered u/s 12AA of the Act of the Act and was granted provisional approval under section 80G(5)(iii) up to AY 2024 granted provisional approval under section 80G(5)(iii) up to AY 2024 granted provisional approval under section 80G(5)(iii) up to AY 2024-25 vide order dated 7.4.2022 in Form 10AC and there is no chang dated 7.4.2022 in Form 10AC and there is no change in the activities of the assessee e in the activities of the assessee whatsoever. Therefore we are of the view that the filing of application is just . Therefore we are of the view that the filing of application is just . Therefore we are of the view that the filing of application is just
5 Assessment Year: Nil The Advocate Association of Bengal procedural form and would not substantially change the position of the assessee vis-à- vis the provisions of Act. Moreover in view of Circular No. 7/2024 dated 25.04.2024 , now the assessee can apply for approval up to 30.06.2024. Considering these facts and circumstances of the case, we restore the issue back to the Ld.CIT(E) with direction to decide the issue of approval after treating the application already filed by the assessee as filed within the due time.
In the result, the appeal of the assessee is allowed for statistical purposes. 6.
Order is pronounced in the open court on 13th June, 2024