YOUTH TO CHANGE FOUNDATION,VADODARA vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

The present appeal is filed by the applicant trust against the order dated 24.01.2024 passed by the Commissioner of Income Tax (Exemption).

The applicant has filed Form 10AB under Section 80G(5) of the Act on 15.07.2023. The date of registration/incorporation in the present case is 25.09.2020 as per Form No. 10AB. The applicant had been granted order for provisional approval in Form No. 10AC issued on 24.09.2021 under Clause (iv) of first proviso to sub-section (5) of Section 80G for the period commencing from 24.09.2021 to A.Y. 2024-25. The CIT(Exemption) issued notice on 16.10.2023 thereby asked the applicant trust to explain as to why the present application filed in Section 80G(5)(iii) in Form No. 10AB should not be treated as not filed within due date specified in the Act and why the same should not be rejected. In response to the notice, the applicant filed its reply on 27.11.2023. The CIT(Exemption) held that the date of commencement of activities in the present case was since 2020 and applicant was required to file application in Form 10AB on or before 30.09.2022, which the Assessment Year: Nil Page 2 of 3 applicant failed to do so. Therefore, rejected the application, as the same was not filed within the time limit prescribed therein. Thus, the application filed in Form No.10AB under Section 80G(5) of the Act was rejected as non-maintainable.

The Ld. AR submitted that the CBDT vide Circular dated April, 2024 extended the time limit for making applications for approval of exemption under Section 80G(5) of the Act till 30.06.2024. Therefore, the applicant trust may be allowed to make the application as per the Circular and the present appeal be disposed of with the said liberty granting to the applicant trust.

The Ld. DR relied upon the order of the CIT(Exemption).

We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the CBDT vide recent Circular dated April 2024 has extended the time for making application for approval of exemption under Section 80G(5) of the Act till 30.06.2024. Thus, the present appeal filed in respect of dismissal of the applications filed by the assessee under Section 80G(5) of the Act has to be taken inconsonance with the latest Circular issued by the CBDT dated April, 2024. Since the time limit for application is extended till 30.06.2024, we are hereby granting the liberty to the assessee to make the appropriate application within the stipulated time issued by the CBDT and, therefore, the present appeal is dismissed accordingly.

In the result, appeal of the assessee is dismissed with the liberty as mentioned in para 5 hereinabove.