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Income Tax Appellate Tribunal, CHANDIGARH
Before: SHRI A.D.JAIN & SHRI KRINWANT SAHAY
आदेश/ORDER
PER A.D.JAIN, VICE PRESIDENT
This is assessee's appeal for assessment year 2022-23 against the order dated 20.06.2023 passed by the ld. Commissioner of Income Tax (Exemptions), Chandigarh [in short ‘the ld. CIT(E)’].
The assessee has raised the following grounds of appeal:
“1. That the Ld. Commissioner of Income Tax (Exemptions) has erred in law rejecting the approval sought under section 8iKLholding it to be not maintainable which is arbitrary and unjustified. 2. That the Ld. Commissioner of Income Tax has erred in law as well as on facts in rejecting the approval sought under section 80G of the Act ,only
ITA 460/CHD/2023 A.Y.2022-23 2 on the basis that the application was not filed within the time limit prescribed in respect of application filed under clause (iii) of first proviso to sub-section (5) of Section 80G which is arbitrary & unjustified.
The facts of the case are that the assessee filed application for registration of the Trust u/s 80G(5) of the Income Tax Act, 1961 on 28.12.2022 electronically in Form No.10AB under Rule 11AA of the IT Rules. A notice was issued to the assessee on 03.02.2023 through ITBA Portal to specify the date of commencement of activities as well as details/documents, etc. In response to the notice, the assessee furnished certain details/documents on 18.02.2023. On considering all the facts, the application of the assessee Trust for final registration u/s 80G of the Income Tax Act was rejected on the ground of limitation.
The assessee Foundation was earlier granted provisional registration. However, the final registration of the assessee Trust was rejected by the ld.CIT(E) observing that as per clause (iii) of first proviso to sub-section (5) of Section 80G of the Act, the assessee Trust was required to apply for final registration atleast six months prior to the expiry of the period of provisional approval or within six months of commencement of its activities, whichever is earlier.
The ld.CIT(E) observed that the last date for application which was extended upto 30.09.2023 vide CBDT Circular
ITA 460/CHD/2023 A.Y.2022-23 3 No.6/2023 dated 24.05.2023. Vide notice/letter dated 03.02.2023, the assessee was requested to state the date of commencement of activities. In response to the same, the assessee filed its submissions electronically on 18.03.2023 submitting that its activities were commenced on 23.01.2021. In re ply to another notice dated 01.06.2023, sent by the ld. CIT(E), the asse ssee submitted vide reply dated 11.06.2023 that after commencement of the activity, the second wave of the COVID-19 pandemic began and lockdown was announced by the Governme nt during that period. The assessee submitted that after things got normalized, they started charitable activities and also applied for the provisional registration of 80G on 25.11.2021. The CIT(E) observed that the application filed in Form No.10AB under Clause (iii) of first proviso to sub- section (5) of the Act was not filed within the time limit as extended from time to time by the CBDT. Accordingly, the ld. CIT (E) rejected the application of the assessee as non maintainable.
Aggrieved the assessee is in appeal before this Tribunal.
We have heard the parties and have perused the material on record. The CBDT vide Circular 7/2024 dated 25.04.2024 has extended the due date for filing of Form No.
ITA 460/CHD/2023 A.Y.2022-23 4 10A/10AB under the Income Tax Act, 1961 till 30.06.2024.
In view of the facts and circumstances, the impugned order of the ld.CIT(E) is, therefore, set aside and the matter is restored to the file of the CIT(E) to decide the application of the assessee for final registration on merits after giving adequate opportunity to the assessee to present its case, irrespective of the fact that there was any delay in filing the application.
The appeal of the assessee is treated as allowed for statistical purposes.
Order pronounced on 09.05.2024.