PRAYAS CHARITABLE TRUST,AHMEDABAD vs. THE CIT, EXEMPTION, AHMEDABAD

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ITA 804/AHD/2024Status: DisposedITAT Ahmedabad22 October 2024Bench: DR. BRR KUMAR (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CBDT circular allows for fresh applications in Form 10AB and directed the CIT(E) to reconsider the assessee's case. The CIT(E) was instructed not to reject the application solely on the grounds of delay.

What were the facts?

The assessee trust filed an application in Form 10AB for approval under Section 80G(5)(iii) of the Income Tax Act, but it was filed beyond the prescribed due date. The Commissioner of Income Tax (Exemption) rejected the application as non-maintainable due to the delay.

What were the issues?

Whether the delay in filing the application for 80G approval can be condoned and if the application should be considered on merits despite the delay.

Which sections of the Income-tax Act were involved?

Section 80G(5)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: DR. BRR KUMAR & SHRI SIDDHARTHA NAUTIYAL

For Respondent: Shri Prothviraj Meena, CIT-DR
Pronounced: 22.10.2024

PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:

This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 13.03.2024. The Assessee has taken the following grounds of appeal:- 2. “1. The learned Commissioner of Income Tax (Exemption) has erred in rejecting the application filed by the Appellant Trust on the ground that the application filed in Form 10AB has not filed within time limit prescribed and therefore it is non-maintainable. On facts and circumstances of the case, the action of Ld. CIT(Exemption) of rejecting the application filed u/s. 80G(5) of the Act is incorrect and unlawful and the approval u/s. 80G(5) of the Act ought to have been granted to the Appellant Trust. The same please be held now.

2.

The learned Commissioner of Income Tax (Exemption) has erred in rejecting the application filed u/s 80G(5)(iii) of the Act stating that the delay in filing of application cannot be condoned by him. It is submitted that the delay in filing of Application u/s 80G(5)(iii) in only because of bonafide reasons and circumstances prevailing beyond the control of the Appellant Trust at that time. On facts and circumstances of the case, it is prayed before your honours that delay in application filed in Form 10AB u/s 80G(5)(iii) of the Act dated 30-09-2023 may please be condoned and necessary directions may please be given to Ld. CIT(Exe.) for granting approval u/s. 80G(5)(iii) considering merits of the case. The same please be held accordingly. Asst.Year –N.A. - 2–

3.

The order passed by the learned Commissioner of Income Tax (Exemption) is bad in law and contrary to the provisions of law and facts. It is submitted that the same be held so now.

4.

Your appellant craves leave to add, alter and/or to amend all or any of the grounds before the final hearing.”

3.

At the time of hearing none appeared on behalf of the assessee.

4.

In the present case the assessee got provisional approval under Section 80G(5)(iii) of the Act and was required to file application in Form No.10AB. The due date for filing of Form No. 10AB was 20.11.2022 which the assessee failed to adhere, which laid to dismissal of the application by the Ld. CIT(E) as non-maintainable.

5.

As per Circular No. 7/2024 dated 25.04.2024 the Board has allowed filing for fresh application in Form No. 10AB. The Ld. CIT(E) may decide the case of the assessee considering the Boards Circular.

6.

In view of the above observations, the matter is restored to the file of CIT(Exemptions), for de-novo consideration, after giving due opportunity of being heard and with the direction not to disentitle the assessee for grant of registration only on the grounds as mentioned in its order for rejecting the application filed by the assessee trust.

7.

In the result, the appeal of the assessee is allowed for statistical purposes.

This Order is pronounced in the Open Court on 22/10/2024 (DR. BRR KUMAR) JUDICIAL MEMBER Ahmedabad; Dated 22/10/2024 TANMAY, Sr. PSITA No. 804/Ahd/2024 Asst.Year –N.A. - 3–

आदेश की "ितिलिप अ"ेिषत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant

2.

""थ" / The Respondent. संबंिधत आयकर आयु" / Concerned CIT 3. 4. आयकर आयु"(अपील) / The CIT(A)- 5. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad गाड" फाईल / Guard file. 6. आदेशानुसार/ BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt.

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