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