SAURASHTRA DASHA MODH VANIK NARANPURA ASSOCIATION,AHMEDABAD vs. THE CIT(EXEMPTION),, AHMEDABAD

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ITA 149/AHD/2024Status: DisposedITAT Ahmedabad29 May 2024Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R Senthil Kumar (Judicial Member)3 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the rejection order predated a relevant CBDT circular providing an extended deadline. Following the circular, the assessee was directed to file a fresh application within the extended period.

What were the facts?

The assessee's application for registration under section 80G(5) was rejected by the CIT(E) for being filed late. The assessee commenced its activity on 23.09.2022 and filed the application on 29.05.2023, which was beyond the prescribed six-month period.

What were the issues?

Whether the rejection of an 80G(5) registration application for late filing can be revisited in light of a subsequent CBDT circular extending the deadline and allowing fresh applications.

Which sections of the Income-tax Act were involved?

Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “ C ” BENCH

Before: Smt. Annapurna Gupta & Shri T.R Senthil Kumar

ITA No:149/Ahd/2024 Assessment Year: NA Saurashtra Dasha Modh The Commissioner Vanik Naranpura of Income Tax Association, Vs (Exemption) C/o.MS Chhajed &Co, Ahmedabad “Kamalshanti”, Near Sardar Patel Underbridge, Sardar Patel Colony, Ahmedabad-380014. PAN: ABJCS3130L (Appellant) (Respondent) Assessee Represented: Shri M.S Chhajed, AR Shri R.N Dsouza, SR-DR Revenue Represented: Date of hearing : 16-05-2024 Date of pronouncement : 29-05-2024 आदेश/ORDER PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER

This appeal is filed by the assessee as against the rejection order dated 28.11.2023 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 80G(5) of the Income Tax Act, 1961 for late filing of the application in Form No.10AB.

2.

The Ld.CIT(E), held that the assessee-trust commenced its activity on 23.09.2022, as per the provision, the assessee was required to file the application for registration on or before 23.03.2023, whereas the assessee filed its application for registration on 29.05.2023 which Saurashtra Dasha Modh Vanik Naranpura Association vs. CIT(E) Asst.Year N.A 2 is beyond six months period and thereby rejected the application for final registration as not maintainable.

3.

The Ld.Counsel for the assesee drawn our attention to the CBDT Circular No.7 of 2024 dated 25.04.2024 and thereby requested to set- aside the present appeal to the file of the Ld.CIT(E) to pass fresh order, due to the extended period of 30.06.2024 as prescribed by the CBDT.

4.

Per Contra, the Ld.DR appearing for the revenue drawn our attention to paragraph 4.1 of the above Circular No.7 of 2024 and submitted that the Ld.CIT(E), rejected order in assessee’s case was dated 28.11.2023 and the Board Circular no.7 of 2024 is dated 25.04.2024. Therefore, the assessee is required to file fresh application in Form 10AB to avail the benefit of extended time as provided in the Board Circular.

5.

We have given our thoughtful consideration and perused the materials available on records including the CBDT Circular No.7 of 2024, which reads as follows: “...4.1 Further, in cases where any trust, institution of 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, society 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...” 5.1 In the present case, impugned order passed by the Ld.CIT(E) is dated 28.11.2023, which is much prior to the Board Circular No.7 of 2024 dated 25.04.2024. Further we don’t find any infirmity in the order Saurashtra Dasha Modh Vanik Naranpura Association vs. CIT(E) Asst.Year N.A 3 passed by the Ld.CIT(E), since the Application was filed beyond the period of six months from the commencement of the Activity of the Trust, as prescribed in the Act. However, as per para 4.1 of the CBDT Circular No.7 of 2024, the assessee is required to make fresh application before the Ld.CIT(E). On proper filing of the application in Form No.10AB by the assessee-trust, well before 30.06.2024, the Ld.CIT(E) is directed to pass fresh order in accordance with law. With this direction, the appeal filed by the assessee is allowed.

6.

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

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