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Income Tax Appellate Tribunal, “B” 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 01.03.2024 for the AY NA.
Issue raised in various ground of appeal the assessee has challenged the order of Ld. CIT(E) rejecting the appeal of trust u/s 80G(5)(iii) applied by the assessee in Form 10AB and also read with Rule 17A of the Income Tax Rules, 1962 on the
Facts in brief are that the assessee was granted provisional approval u/s 80G in Form 10AC vide order dated 15.10.2021 for a period from 15.10.2021 to AY 2024- 25. The assessee moved an application for approval of trust u/s 80G(iii) of the Act electronically on 25.09.2023 in Form 10AB under Rule 17A of the Rules which according to Ld. CIT(E), was not filed within the time prescribed u/s 80G(5)(iii) as the trust is an existing trust and already have commenced the activities. Finally the Ld. CIT(E) dismissed the application of assessee on the ground that Circular no. 6 of 2023 dated 24.05.2023 issued by CBDT does not extend the benefit of extension of due date to 30.09.2023 to cases u/s 80G(5) of the Act and due date for such application u/s 10AB was 30.09.2022. Having observed all these facts the Ld. CIT(E) rejected the application for approval as well as provisional registration.
After hearing the rival contentions and perusing the material on record, we find that the assessee is duly registered u/s 12A 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 since inception. We are also mindful of the recent CBDT F. No. 173/25/2024-ITA-I, Circular no. 7/2024 dated 25.04.2024 has extended the time 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 for the sake of ready reference:
3 I Assessment Year: Nil Paschim Banga Kheria Sabar Kalyan Samity Paschim Banga Kheria Sabar Kalyan Samity
4 I Assessment Year: Nil Paschim Banga Kheria Sabar Kalyan Samity Paschim Banga Kheria Sabar Kalyan Samity We note that since the assessee is duly registered u/s 12A of the Act and was granted We note that since the assessee is duly registered u/s 12A of the Act and was granted We note that since the assessee is duly registered u/s 12A of the Act and was granted provisional approval under section 80G(5)(iii) up to AY 2024 provisional approval under section 80G(5)(iii) up to AY 2024-25 vide order dated 25 vide order dated 15.10.2021 in Form 10AC and there is no change in the activities of the assessee 15.10.2021 in Form 10AC and there is no change in the activities of the assessee 15.10.2021 in Form 10AC and there is no change in the activities of the assessee whatsoever since then. Therefore we are of the view that the filing of application is ever since then. Therefore we are of the view that the filing of application is ever since then. Therefore we are of the view that the filing of application is 5 Assessment Year: Nil Paschim Banga Kheria Sabar Kalyan Samity just procedural and would not have any substantive effect 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