SARANSH PARIVAR SHRI KUNTHUNATH SWAMI JAIN SANGH,AHMEDABAD vs. THE CIT(EXEMPTION), AHMEDABAD

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ITA 794/AHD/2024Status: DisposedITAT Ahmedabad25 June 2024Bench: MS. SUCHITRA KAMBLE (Judicial Member)4 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that CBDT Circular No. 7/2024 extended the time for filing applications and allowed the assessee to make a fresh application within the extended period.

What were the facts?

The assessee trust filed an application for registration under section 12A in Form 10AB, but mistakenly under the wrong sub-clause. The CIT(E) rejected the application as non-maintainable due to this error.

What were the issues?

Whether the CIT(E) erred in rejecting the application for registration under section 12A solely on the ground of filing under a mistaken sub-clause, and if a fresh application could be considered in light of a subsequent CBDT circular.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ B ” BENCH, AHMEDABAD

Before: MS. SUCHITRA KAMBLE & SHRI MAKARAND V. MAHADEOKAR, ACCOUNTNAT MEMBER

For Appellant: Shri Mehul K. Patel, Advocate
Hearing: 19/06/2024Pronounced: 25/06/2024

PER SHRI MAKARAND V. MAHADEOKAR, AM:

This appeal by the assessee trust is directed against the order of the Ld.Commissioner of Income Tax (Exemptions), Ahmadabad [hereinafter referred to as “the Ld.CIT(E)”], dated 18-03-2024, wherein the application for registration under section 12A of the Income Tax Act, 1961, was rejected.

2.

The Assessee has filed following grounds of appeal:

“1. That on facts, and in law, the learned CIT(Exemptions) Ahmedabad has grievously erred in not granting sufficient and reasonable opportunity to the appellant and in rejecting the application u/s 12A(1) .

2.

That on facts, and in law, the learned CIT(Exemptions), Ahmedabad has grievously erred in rejecting the application as non-maintainable by holding that it has no power to treat the application under the correct provisions of section 12A(1)(ac) (iii) instead of mistaken application filed u/s 12A(1)(ac) (v) of the Act.

3.

The appellant craves leave to add, alter, amend any ground of appeal.”

Facts of the case:

3.

The assessee-trust had filed an application in Form 10AB on 30.9.2023 for registration under section 12A(1)(ac)(v) of the Act. The Ld.CIT(E) found that the application by the assessee trust was made under wrong sub- clause i.e. sub-clause(v) of clause (ac) of sub-section (1) of section 12A whereas it was required to be filed under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act.

3.1.

In view of the above, the Ld.CIT(E), treated the application non- maintainable and rejected the same.

On the grounds of appeal:

4.

The Ld.AR submitted that the CBDT vide Circular No.7/2024 has extended the time limit for making applications for approval of exemption under Section 80G(5) of the Act till 30.06.2024. Therefore, in light of the said Circular No.7/2024 dated 25-4-2024 has extended the time for making application for approval of exemption under Section 80G(5) of the Act till 30.06.2024. 6. 1. Thus, the present appeal filed in respect of rejection of the application filed by the assessee has to be taken inconsonance with the latest Circular No. 7/2024 issued by the CBDT.

6.2.

We reproduce the relevant para 4.1 of the said Circular for the sake of clarity -

“4.1 Further, in cases where any trust, institution or fund has already made an application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish a fresh application in Form No. 10AB within the extended time provided in paragraph 3(ii) i.e. 30.06.2024.”

6.3.

Since the time limit for application is extended till 30.06.2024, we are hereby, without going into the merits of the case, granting the liberty to the Saransh Parivar Shri Kunthunath Swami Jain Sangh vs. The CIT(E)

assessee to make the appropriate application within the stipulated time issued by the CBDT and, therefore, the present appeal is dismissed accordingly.

6.4.

In the result, appeal of the assessee is dismissed with the liberty as mentioned in para hereinabove. Order pronounced in the Open Court on 25 June, 2024 at Ahmedabad. (SUCHITRA KAMBLE) ACCOUNTANT MEMBER

Ahmedabad, Dated 25/06/2024

ट".सी.नायर, व."न.स./T.C. NAIR, Sr. PS आदेश क" ""त"ल"प अ"े"षत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant

2.

""यथ" / The Respondent. 3. संबं"धत आयकर आयु"त / Concerned CIT 4. आयकर आयु"त ( अपील ) / The CIT(E)-Ahmedabad

5.

"वभागीय ""त"न"ध , आयकर अपील"य अ"धकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाड" फाईल /Guard file.

आदेशानुसार/ BY ORDER,

स"या"पत ""त ////

सहायक पंजीकार (Asstt.

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