Appeal allowed for delayed Form 10AB filing for section 80G registration following Vananchal Kelavani Trust precedent

ITAT Surat allowed the appeal where registration under section 80G(5) was rejected due to delayed filing of Form 10AB. The assessee filed the application on 02.12.2022, missing the 30.09.2022 deadline per CBDT circular. Following precedent in Vananchal Kelavani Trust case, the Tribunal condoned the delay and remitted the matter back to CIT(E) for fresh adjudication on merits. The assessee was directed to file relevant details and documents as required by CIT(E).

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Issues Involved:
1. Rejection of application for registration under section 80G(5) of the Income Tax Act.
2. Determination of the date of commencement of activities for the Trust.
3. Consideration of delay in filing the application and whether it can be condoned.

Summary:

Issue 1: Rejection of Application for Registration under Section 80G(5)
The appellant's application for registration under section 80G(5) was rejected by the Commissioner of Income Tax (Exemption) [CIT(E)], Ahmedabad. The CIT(E) observed that the application, filed in Form No. 10AB, was not submitted within the prescribed time limits as per section 80G(5) of the Income Tax Act.

Issue 2: Determination of Commencement of Activities
The CIT(E) noted that the Trust had received donations and incurred expenses in the financial year 2021-22, indicating that the activities had commenced long before the claimed date of 07.11.2022. The appellant argued that the date of commencement should be considered as 07.11.2022, the date when a service agreement for E-Waste Management was entered into, and hence the application filed on 02.12.2022 was within six months of this commencement date.

Issue 3: Consideration of Delay in Filing the Application
The CIT(E) rejected the application on the grounds that it was filed after the extended deadline of 30.09.2022, as provided by CBDT Circular No. 8/2022. The appellant argued that the delay should be condoned, citing that the Tribunal has the power to do so in the interest of justice. The Tribunal noted that the issue was covered by the Co-ordinate Bench in the case of Vananchal Kelavani Trust vs. CIT(E), which allowed for condonation of delay under similar circumstances.

Tribunal's Findings:
1. Rejection of Application: The Tribunal acknowledged that the CIT(E) was correct in noting the delay as per the prescribed timelines but emphasized that the Tribunal has the authority to condone such delays.
2. Commencement of Activities: The Tribunal found merit in the appellant's argument that the date of commencement could be interpreted as the date when substantial steps towards the Trust's objectives were taken, i.e., 07.11.2022.
3. Condonation of Delay: The Tribunal, following the precedent set by the Co-ordinate Bench and the judgment of the Hon'ble Delhi High Court in the case of Vishwa Jagriti Mission, condoned the delay in filing the application. The Tribunal remitted the matter back to the CIT(E) to adjudicate the issue afresh on merits, directing the CIT(E) to consider the application as filed within the statutory time limit.

Conclusion:
The Tribunal set aside the order of the CIT(E) and remitted the matter back for fresh adjudication, allowing the appeal for statistical purposes. The Tribunal emphasized that the delay in filing the application should be condoned in the interest of justice, and the CIT(E) should verify the eligibility of the Trust as per the Act.

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