GREAT WAVES TRUST,AHMEDABAD vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

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ITA 229/AHD/2024Status: DisposedITAT Ahmedabad14 June 2024Bench: MS. SUCHITRA KAMBLE (Judicial Member)4 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal. The assessee subsequently filed a fresh application for registration under Section 80G as per a CBDT circular extending the due date.

What were the facts?

The assessee trust's application for final registration under Section 80G was rejected by the CIT(E) due to a delay in filing Form 10AB. The assessee had a provisional approval which was also cancelled on the same ground.

What were the issues?

Whether the rejection of the 80G application on technical grounds of delay was justified, and the impact of a subsequent fresh application.

Which sections of the Income-tax Act were involved?

Section 80G

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 Mukesh m. Shah, CA
Hearing: 12/06/2024Pronounced: 14/06/2024

PER SHRI MAKARAND V. MAHADEOKAR, AM:

This appeal is filed by the Assessee as against the rejection order dated 28.11.2023 passed by the Ld.Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as “the Ld.CIT(E)] for final registration under section 80G of the Income Tax Act, 1961 [hereinafter referred to as “the Act”].

2.

The Assessee has raised following grounds of appeal:

“1. Ld. C.I.T. (Exemption) erred in law and on fact in rejecting the application for approval u/s 80G (5) 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 nonmaintainable.

On facts and circumstances of the case, the action of Ld. CIT (Exemption) of rejecting the application filed for approval 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.

Ld. C.I.T. (Exemption), while passing the order, nowhere in the Order has doubted the very existence of the trust, its objects and the genuineness of the charitable activities carried out by the appellant Trust.

2.

Ld. C.I.T. (Exemption) erred in law and on fact in cancelling the provisional approval granted under clause (vi) of first proviso to sub section (5) of Section 80G on the technical ground that the application filed in Form 10AB for Final Approval has not filed within time limit prescribed and therefore it is non-maintainable.

The assessee reserves its right to add, amend, alter, delete, change or modify any or all grounds of appeal before or at the time of the hearing.”

Condonation of delay:

2.

The Registry has noted that there is a delay of 13 days in filing the above appeal. The assessee has filed an application for condonation of delay along with notarized Affidavit dated 08/02/2024. In the said application, it is mentioned that due to inadvertent mistake of Shri Chandresh Shah, the partner of the firm, M/S Mukesh M. Shah, Chartered Accountants, to whom the assignment was given, firm could not file the appeal before time.

2.1.

The assessee has provided a plausible explanation for the delay, which, in our opinion, constitutes sufficient cause. There is no evidence to suggest that the delay was due to any deliberate act or gross negligence on the part of the appellant. Accordingly, the delay of 13 days in filing the appeal is condoned.

On the Grounds of appeal:

3.

At the outset, the assessee-trust informed that it had made fresh application for registration under section 80G of the Act by filing Form No. 10AB on 14.05.2024 with Acknowledgment number 215645590140524 before the Ld.CIT(E) in pursuance to the CBDT Circular No.7 of 2024 dated 25.04.2024, which extended due date of filing Form 10AB for approval under section 80G(5) of the Act up to 30.06.2024 and also enclosed copy of the same.

3.1.

Recording the above submission of the assessee-trust, the appeal filed by the assessee is hereby dismissed with a direction to the Ld.CITE) to dispose of the fresh application filed in Form 10AB by the assessee on 14.05.2024 for final registration u/s.80G(5) of Act, in accordance with law. With this observation, the appeal filed by the assessee is hereby dismissed.

4.

In the result, the appeal filed by the assessee is dismissed. Order pronounced in the Open Court on 14th June, 2024 at Ahmedabad. (SUCHITRA KAMBLE) ACCOUNTANT MEMBER

Ahmedabad, Dated 14/06/2024 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(Exemption)-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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