AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (6) TMI 564
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.... of the Act as a charitable institution since 2008. However, an amendment was brought into the relevant provisions of Section 80G of the Act vide Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (hereinafter referred to as 'Amendment Act of 2020') with effect from 01.04.2021 whereby, an institution, which has already been approved before the aforesaid amendment, was required to re-apply for grant of approval under Clause (i) of the First Proviso to section 80G(5) of the Act within three months from the 1st day of April, 2021. The assessee, however, applied for provisional approval under Clause (iv) to First Proviso to section 80G(5) of the Act, which was meant for the institutes who have to apply for the first time and not for revalidating the existing approval prior to amendment. The assessee was granted provisional approval u/s Clause (iv) to First Proviso to section 80G(5) of the Act in Form 10AC vide order dated 24.09.2021 for a period from 24.09.2021 to AY 2024-25. The assessee thereafter applied for final approval under Clause (iii) to First Proviso to section 80G(5) of the Act. However, ld. CIT (Exemption) rejected the application of the ass....
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.... of April, 2021; (ii) where the institution or fund is approved and the period of such approval is due to expire, at least six months prior to expiry of the said period; (iii) where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier; (iv) in any other case, at least one month prior to commencement of the previous year relevant to the assessment year from which the said approval is sought: Provided further that the Principal Commissioner or Commissioner, on receipt of an application made under the first proviso, shall,- (i) where the application is made under clause (i) of the said proviso, pass an order in writing granting it approval for a period of five years; (ii) where the application is made under clause (ii) or clause (iii) of the said proviso,- (a) call for such documents or information from it or make such inquiries as he thinks necessary in order to satisfy himself about- (A) the genuineness of activities of such institution or fund; and (B) the fulfilment of all the conditions laid do....
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....r the institutions which have been granted approval under Clause (iv) to First Proviso to section 80G(5) of the Act have to apply for final registration under Clause (iii) of First Proviso to section 80G(5). Such institutions are required to apply for final registration at least six months prior to expiry of the period of provisional approval or within six months of commencement of its activities, whichever is earlier. In the case in hand, it appears that the assessee-institution instead of applying for renewal of registration under Clause (i) to First Proviso to section 80G(5) of the Act has applied for fresh provisional registration under Clause (iv) to First Proviso to section 80G(5) of the Act and incidentally, the said fresh provisional registration has also been granted to the assessee- institution from 10.03.2023 to A.Y 2025-26. If the assessee-institution would have applied for renewal of the registration under Clause (i), then its approval u/s 80G(5) would have continued without any break. The last date for making such an application was upto 30.09.2023 as per the extended date from time to time vide Circular no.6 of 2023. However, since the assessee-trust has applied for ....
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....ectly applied for final registration without grant of provisional registration. The aforesaid proviso, therefore, is to be read as that after the grant of provisional registration, if the assessee has not commenced its activities, he may apply for registration within six months of the commencement of its activities or within the six months prior to the expiry of the period of provisional approval, whichever is earlier. In any case, the assessee is eligible to apply for final registration only after the grant of provisional approval. Therefore, we hold that there is no delay on the part of the assessee in filing application in the prescribed form for grant of final registration under Clause (iii) of 1st Proviso to section 80G(5) of the Act. In view of the above observations, the matter is restored the file of the CIT(E) for decision afresh in the light of the observations made above." 5. It is to be further noted here that the ld. CIT(Exemption) firstly misconstrued about the CBDT Circulars regarding the exemption of date for final applications for approval. The said Circular/time limits are applicable only for the institutions who stood already registered on the date of Amend....
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....rovisions of section 80G(5) otiose and defeat the object and purpose of these statutory provisions. 6. In view of the above discussion, it is held that after grant of provisional approval, the application cannot be rejected on the ground that the institution had already commenced its activities even prior to grant of provisional registration. Under such circumstances, the date of commencement of activity will be counted when an activity is undertaken after the grant of provisional registration either under Clause (i) or Clause (iv) to First Proviso to section 80G(5) of the Act. 7. In the case in hand, the assessee admittedly has applied for final registration after grant of provisional registration under Clause (iv) to First Proviso to section 80G(5) of the Act and therefore, the application filed by the assessee is within limitation period. The issue is otherwise squarely covered by the decision of the Coordinate Bench of the Tribunal in the case of Vivekananda Mission Asram vs. CIT (supra) and in the case of "West Bengal Welfare Society vs. CIT(Exemption)" (supra) and further by the decision in the case of "Sri Aurobindo Bhawan Trust, Krishnagar vs. CIT(Exemption)" order da....
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....aid Form 10AC and applied for registration for A.Y 2022-23 as an existing trust, institution or fund in Form 10A within the extended time i.e. upto 30.06.24. The relevant para 5 of the Circular is reproduced as under: "5. It is also clarified that if any existing trust, institution or fund who had failed to file Form No. 1OA for A Y 2022-23 within the due date as extended by the CBDT circular no. 6/2023 dated 24.05.2023 and subsequently, applied for provisional registration as a new trust, institution or fund and has received Form No. 1OAC, it can avail the option to surrender the said Form No. 1OAC and apply for registration for A Y 2022-23 as an existing trust, institution or fund in Form No. 1OA within the extended time provided in paragraph 3(i) i.e. 30.06.2024." 6. In view of above fresh instructions of the CBDT, an option has been given to the existing trusts which were duly registered u/s 80G(5) of the Act prior to the date of amendment w.e.f. 01.04.2021 and who have instead of filing the application under clause (i) of the 1st Proviso to section 80G of the Act had filed the application as a fresh institution under clause (iv) of the 1st Proviso to section 80G of the Act....
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....ied under clause (iv) as a fresh institution. This means that the institutions which due to complexity of the provisions could not properly understand the said provisions and instead of applying as an existing institution under clause (i), applied under the wrong clause i.e. clause (iv) which was meant for new trusts/institutions, though within due date as extended by the CBDT Circular 6 of 2023 i.e. on or before 30.09.2023 would not be entitled to the benefit of Circular No.7/2024. The effect of the said anomaly, if so interpreted as pointed out by the ld. CIT-DR, could be that the institutions/trusts which had been vigilant and had made effort to comply with the amended provisions and duly applied for fresh registration within the due date but mistakenly under the wrong clause, would be deprived of benefit of the said Circular, whereas, the institutions who did not apply at all till the last date as extended by CBDT Circular no.6 of 2023 i.e. upto 30.09.2023, but applied 'subsequently' as a new trust, will be benefited by the said Circular. Even the institutions which did not apply at all either as an existing institution or as a new institution, the benefit of the said circular ....