TaxTMI 
TaxTMI 
2023 (11) TMI 1241
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....stration under Section 12A of the Act and approval under Section 80G of the Act is a natural corollary; ii. The delay was unintentional and due to genuine difficulties faced by the appellant and ought to have been condoned; iii. Procedural defect should not be allowed to defeat the substantive cause of justice. 3. The Appellant craves leave to add to, amend or delete the above grounds of appeal." 3. The fact as culled out from the records is that the applicant filed application on 16.12.2022 in Form No. 10AB for seeking approval u/s 80G (5)(iii) of the Income Tax Act, 1961. The applicant was issued a letter/notice No. ITBA/EXM/F/EXM43/2022- 23/1051869216(1) dated 05-04-2023 requesting it to furnish certain documents/explanations by 20-04-2023, In response to the above the AR of the assessee submitted its reply which is not found tenable. Therefore, a show cause letter vide DIN No. ITBA/EXM/F/EXM43/2023- 24/1053624660(1) dated 08-06-2023 as final opportunity through which date of hearing was fixed as 12.06.2023, which was duly examined place on record reply was tenable. Since it is a limitation matter, the case decided on the basis of material placed on record and applica....
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....aphs no. 15 & 16 worth to note, which read as under:- *15. However, considering the legal position that there is no power to condone the delay in filing an application under section 10(23C) of the Act, this Court is not inclined to exercise its extraordinary jurisdiction to condone the delay. However, this Court is inclined to give appropriate direction to the respondent to consider the petitioner's application as an application for the subsequent assessment year, namely, 2013-2014 in accordance with law. Such direction is issued considering the peculiar facts and circumstances of the case and that the petitioner could not have made an application for the subsequent assessment year 2013- 2014, since their application for assessment year 2012-2013 was still pending consideration and the impugned order came to be passed only on 13-11-2013. The respondent is at liberty to consider the amended objectives of the petitioner Trust. 16. Accordingly, the writ petition is partly allowed and the finding rendered by the respondent that the petitioner's application cannot be considered as the same is time barred is affirmed and the finding with regard to objectives of the Society ....
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....e same is reiterated here in below; 1. The assessee is incorporated u/s 8 of the Companies Act, 2013 on 13.10.2021 (PB 25) with the main object to provide, facilitate and channelise all and every kind of assistance to organizations which are working in the field of protection of cows and its progeny (PB 13). 2. The assessee filed an application for provisional registration on 16.10.2021 in Form No.10A u/s 12A(1)(ac)(vi) and under clause (iv) of first proviso to section 80G(5). It was granted provisional registration in Form No.10AC on 27.10.2021 (PB 45) from 27.10.2021 to AY 2024-25. 3. The assessee commenced its activities from 13.10.2021, i.e. from the date of its incorporation. Therefore, it filed an application in Form No.10AB both u/s 12A(1)(ac)(iii) (PB 47-55) and under clause (iii) of first proviso to section 80G(5) (copy enclosed) on 16.12.2022 for permanent registration. 4. The Ld. CIT(E) granted permanent registration in Form No.10AD u/s 12A(1)(ac)(iii) vide order dt. 29.06.2023 (PB 1-4) but refused the registration u/s 80G(5) by giving the following reasons:- (i) The application in Form No.10AB under clause (iii) of first proviso to sub-section 80G(5) is re....
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....tration u/s 80G(5)(vi). The question therefore arises is that if there is a delay, the application itself would be rejected or registration would stood cancelled and whether the Ld. CIT(E) has power to still accept the application and grant permanent registration. 3. It is submitted that condition of section 80G(5)(vi) is that institution or fund is for the time being approved by the PCIT or CIT. There is no dispute as to the fact that assessee is provisionally registered till AY 2024-25 vide order dt. 27.10.2021 (PB 45-46). Thus it has complied with section 80G(5). The proviso to this section only deals with the procedure as to the filing of the application. The law of procedure has to be approached, understood and appreciated as a helpmate in the course of the process of administration of justice. Procedural provision should be so construed as to sub serve the course of justice and not to hinder it. It is a settled proposition of law that technicalities should not come in way in imparting the substantial justice. Hon'ble Supreme Court in case of S. Nagaraj & Others Vs. State Of Karnataka & Another 4 SCC 595 in para 18 of the order has held as under:- "18. Justice is a virtu....
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....cation is filed. Therefore, the permanent registration ought to have been granted to the assessee at least from the date when the application is filed instead of rejecting the application in toto. 5. It is submitted that Hon'ble Supreme Court in case of CIT Vs. Lok Sewa Sansthan Samiti 105 Taxmann.com 203 (copy enclosed) has dismissed the SLP filed by the revenue against the decision of Hon'ble Allahabad High Court where it was held that where the assessee stands registered as a charitable institution u/s 12A of the Act, the natural corollary is that its application under section 80G(5) of the Act also becomes liable to be allowed. In the present case also when the assessee has been granted permanent registration u/s 12A(1)(ac)(iii) on 29.06.2023 in pursuance to the application filed on 16.12.2022, the permanent registration u/s 80G(5) should also be allowed in pursuance to the application filed on same date. 6. Without prejudice to above, it is submitted that clause (iv) of the proviso to section 80G(5) has been substituted by FA, 2023 w.e.f. 01.10.2023 to provide that application can be made at any time after the commencement of the activities where the activities of the in....
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....Y 2021-22 27-42 6. Copy of acknowledgment of return filed for AY 2022-23 43 7. Copy of computation of income for AY 2022-23 44 8. Copy of provisional registration u/s 80G(5) of the Act in Form 10AC dated 27.10.2021 45 9. Copy of application for registration in Form 10A13 filed on 16.12.2022 47-55 10. Copy of notice dated 05.04.2023 issued by the CI1(Exemptions), Jaipur u/s 80G of the Act 56-61 11. Copy of reply dated 01.05.2023 and 13.05.2023 filed by the assessee in response to the notice dated 05.04.2023 along with the details of charitable activity carried out by the assessee 62-75 12. Copy of notice dated 08.06.2023 issued by the CIT(Exemptions), Jaipur u/s 80G of the Act 76-78 13. Copy of reply dated 19.06.2023 and 29.06.2023 filed by the assessee in response to the notice dated 08.06.2023 79-89 4.2 The ld. AR of the assessee submitted that delay in making the application is only for 2.5 months from the extended date of filling the application for obtaining the permanent registration u/s. 80G(5)(vi). There is no dispute as to the fact that assessee is provisionally registered till AY 2024-25 vide order dated 27.10.2021 a....
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....which got extended till 30.09.2022 as per CBDT Circular No.8/2022 dated 31.03.2022. (iii) The assessee filed application for grant of permanent registration on 16.12.2022 which is after the extended due date. No power is given under the Act to CIT(E) to condone the delay and therefore the application filed by the assessee is rejected as non-maintainable for which reliance is placed on the decision of Hon'ble Kolkata ITAT in case of Bishnupur Public Education Institute 139 Taxman.com 121. 6.1 The Bench noted that section 80G allows deduction to an assessee in computing his total income in respect of donation paid to any fund or institution. However, under sub-section 5, the deduction is allowable only if such fund or institution is established in India for charitable purpose and it fulfills the following conditions:- (i) The income of the fund or institution is exempt u/s 11 & 12. (ii) No part of income or asset of the fund or institution is used for any purpose other than a charitable purpose. (iii) The fund or institution is not for the benefit of any particular religious community or caste. (iv) It maintains regular accounts of its receipt & expenditure. (v) It....