2024 (8) TMI 361

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....ub-section (5) of section 80G. The trust was granted provisional approval vide order dated 01.10.2021 valid upto the period 30.09.2024. Subsequently, the appellant trust filed application in Form No. 10AB under clause (iii) of first provision to sub-section (5) of section 80G of the Act on 29.09.2023. The said application came to be rejected vide impugned order dated 19.03.2024 on the ground that the appellant trust had not filed the application within the prescribed time limit under clause (iii) of first provision to sub-section (5) of section 80G of the Act. According to the ld. CIT(Exemptions), the appellant trust was required to file the application in Form No.10AB for regular approval within six months from the date of provisional appr....

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....o section 80G are extracted below : "Provided that the institution or fund referred to in clause (vi) shall make an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for grant of approval,- (i) ............................................ (ii) ............................................ (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; The literal interpretation of clause (iii) of proviso means that in case the institution has been provisionally approved, application in the prescribed form for grant of the requisit....

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....sion. 8. In our considered opinion, in the light of the above discussion, a fair and reasonable construction clause (iii) of proviso to section 80G(5) would be to read into it a condition that in the place of word 'earlier' word "later" be substituted and can be read as under : "(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 later; 9. We are also fortified in adopting the above construction by the decision of Hon'ble Supreme Court in the case of K.P. Varghese Vs. ITO 131 ITR 597 (SC). 10. Adverting to the facts of the present case, undisputedly, the appellant trust comm....