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Income Tax Appellate Tribunal, Hyderabad ‘B’ Bench, Hyderabad
Before: SHRI K. NARASIMHA CHARY & SHRI MADHUSUDAN SAWDIA
आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M:
This appeal is filed by M/s. We Are With You Charitable Trust (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Exemptions), Hyderabad (“Ld. CIT(E)”), dated 01.03.2024, rejecting the application of the assessee for final registration u/s 80G(5).
The solitary ground in this appeal of the assessee is related to rejection of application for grant of final registration filed in Form No.10AB u/s.80G(5) of the Income Tax Act, 1961 (“the Act”) .
The brief facts of the case are that the assessee filed Form no. 10AB on 30/09/2023, seeking final registration u/s.80G(5) of the Act before the Ld. CIT(E). However, the Ld. CIT(E) rejected the application of the assessee due to the reason that the application was not filed within the stipulated time prescribed under the Act.
Aggrieved with the order of Ld. CIT(E), the assessee is in appeal before us .
There was no appearance on behalf of the assessee before us. Therefore, we proceed to decide the issue on merits after hearing the Ld. DR. On perusal of records, it is found that the CPC had issued Form No.10AC on 08.02.2002 granting the provisional registration u/s.80G(5) of the Act, which was valid from 08.02.2022 to AY 2024-25. The assessee filed Form No.10AB on 30/09/2023, seeking final registration u/s.80G(5) of the Act, which in the opinion of Ld. CIT( E ) was filed after the specified time period provided u/s 80G(5) of the Act. Therefore the Ld. CIT ( E ) stating that he do not have power to condone the delay in filing of Form 10AB, rejected the application of the assessee.
Similar issue came before the coordinate bench of ITAT, in the case of Shri Ramajayam Charitable Trust Vs. ITO (Exemptions) in 875 & 1136/Chny/2023 dated 08/03/2024, where at para No. 7.8 held as under :
“7.8 After hearing the arguments of ld. counsel for the assessee and ld. CIT-DR as noted above, we find from the facts that the timeline prescribed for filing Form No.10AB for registration u/s.12A of the Act in the case of assessee trust has been extended up-to 30.09.2023 after considering the genuine hardship faced by charitable institutions vide various CBDT circulars and finally, vide Circular No.6/2023 dated 24.05.2023. Similarly, the timeline prescribed for filing Form No.10A for recognition u/s.80G of the Act was also extended up-to 30.09.2023 by the same circular for trusts filing registration under clause (i) to first proviso to section 80G(5) of the Act. But the above extension was not extended beyond 30.09.2022, unlike other forms which were extended up to 30.09.2023 to the disputed forms namely Form No.10AB for renewal of recognition u/s.80G(5) of the Act under clause (iii) of the first proviso to section 80G(5) of the Act. Once, the CBDT has extended the timeline for filing Form No.10AB for recognition u/s.12A of the Act and also for filing Form No.10A for recognition u/s.80G of the Act extended up to 30.09.2023 for trusts filing registration under clause (i) of first proviso to section 80G(5) of the Act, we find no difference in continuing hardship as recognized by CBDT even in filing Form No.10AB for renewal of recognition u/s.80G of the Act under clause (iii) of first proviso to section 80G(5) of the Act. In our view, this being a genuine hardship case, which is recognized by Revenue or CBDT by issuing a general circular, we are of the view that this specific provision of clause (iii) to first proviso to section 80G(5) cannot be excluded and or it has not been the intention of the CBDT while issuing the circular. There cannot be a distinction within the same provision without bringing out any exception and even this provision is for the benefit of the donors who are donating money to the charitable trusts for claiming exemption in their returns of income. In our view, we agree with the argument of ld. counsel for the assessee that the timeline prescribed under clause (iii) of first proviso to section 80G(5) of the Act should be treated as directory and not mandatory especially considering the transitional nature of the amendment as brought out by the taxation of other laws (relaxation and amendment of certain provisions) act 2020 for bringing new regime. Hence, in our view, the CIT(Exemptions) should not have rejected the assessee's application in Form No.10AB only for this technical reason. We are of the view that the intention of CBDT in its circular clearly reflects their mind that once the timeline prescribed for filing Form No.10AB for recognition u/s.12A of the Act has been extended up to 30.09.2023, the same may be treated as extended for forms namely Form No.10AB for renewal of approval/recognition/registration under clause (iii) of first proviso to section 80G of the Act also. Hence, we accept the plea of assessee and agree with the arguments of ld. counsel for the assessee and remand the matter back to the file of the CIT(Exemption) to decide the issue on merits. Hence, the order of CIT(Exemption) on this issue is set aside and matter is remanded back to the file of the CIT(Exemption) for re- deciding the issue on merits as per law. The appeal of the assessee is allowed for statistical purposes.”
On perusal of above it is abundantly clear that, the coordinate bench of ITAT (supra) by interpreting the Circular No.6/2023 dated 24.05.2023 issued by the CBDT, considered the extended due date for filing of Form No. 10AB for final registration u/s 80G(5) as 30/09/2023. The assesse has also filed the Form No. 10AB for final registration u/s 80G(5) on 30/09/2023. Hence respectfully following the decision of coordinate bench of ITAT in the case of Shri Ramajayam Charitable Trust Vs. ITO (Exemptions) (supra), we bold that the assesse has filed the Form No. 10AB for final registration u/s. 80G(5) by the extended due date and hence there was no delay in filing of Form No. 10AB by the assessee. Therefore we remand the matter back to Ld. CIT (E) with a direction to grant the final registration u/s. 80G(5) on merits as per law after providing an opportunity of being heard to the assessee. Accordingly, the appeal of the assessee is allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 3rd Sept., 2024.
Sd/- Sd/-
(K. NARASIMHA CHARY) (MADHUSUDAN SAWDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad. Dated: 03.09.2024. * Reddy gp