SHREE RAM CHANDRA SARAF SEVA NIDHI,KOLKATA vs CIT(EXEMPTION), KOLKATA

Income Tax Appellate Tribunal, “C” BENCH KOLKATA

order : March 14, 2024 आदेश / ORDER Per Bench: The present appeals have been preferred by the assessee against the separate orders both dated 19.12.2023 of the Commissioner of Income Tax (Exemption), Kolkata [hereinafter referred to as ‘CIT(E)’], whereby, the applications of the assessee have been rejected for provisional registration as a charitable institution u/s 12A of the Income Tax Act (hereinafter referred to as the ‘Act’) and u/s 80G of the Act.

The ld. Counsel for the assessee has submitted that the assessee was earlier registered as a charitable institution u/s 12A of the Act w.e.f. 1991 and had also been registered u/s 80G of the Act. Subsequent to the Amendment brought into the relevant provisions of section 12A & section 80G of the Act vide Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 Shree Ram Chandra Saraf Seva Nidhi (hereinafter referred to as ‘Amendment Act of 2020’) with effect from 01.04.2021, the assessee was supposed to apply a fresh for provisional registration in the relevant form (Form 10A) within three months from the 1st day of April, 2021. However, the CBDT vide Circular No. 18/2022 taking into consideration the difficulty faced by the charitable institutions and also taking note of the complexity of the provisions, extended the date for making application for provisional registration in case of institutions who were already registered/approved up to 30.09.2022. The ld. Counsel has submitted that the assessee has filed the applications for renewal of the registration as required by the Amending Act, 2020 within the limitation period. However, due to complexity of the provisions, the said applications were inadvertently moved in Form 10AB instead of Form 10A. That the ld. CIT(E) has rejected the applications of the assessee solely on this ground. It has been further submitted that if the assessee now moves a fresh application in Form 10A, that will be treated by the CIT(E) being barred by limitation.

Considering the overall facts and circumstances of the case and also as observed by us in many cases that due to complexity of the newly inserted provisions even the ld. CIT(E)s also could not properly interpret the same, therefore, the assessee cannot be punished on this technical ground. The impugned orders of the CIT(E) are, therefore, set aside and it is directed that the ld. CIT(E) will consider the applications filed by the assessee in Form 10AB as being filed in the relevant prescribed form which is required for making applications for the institutions who are already registered as on 01.04.2021 and the applications moved by the assessee will be treated as being moved u/s 12A(ac)(i) of the Act and under Clause (i) to the First Proviso to section 80G(5) of the Act respectively and the CIT(E) will grant the provisional

SHREE RAM CHANDRA SARAF SEVA NIDHI,KOLKATA vs. CIT(EXEMPTION), KOLKATA