TaxTMI 
TaxTMI 
2024 (9) TMI 264
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....ted to assessee in Form 10AC u/s 80G(5)(iv) of the Act. Relief claimed in appeal: 3. It is prayed that the CIT (Exemption) be directed to grant registration u/s 80G (5) of the Act to the assessee-applicant considering the intent of the Act read with the objects of the assessee- applicant along with merits of the case. 4. The appellant craves leave to add, amend, alter or withdraw all or any ground of appeal at any time upto the date of hearing of the appeal." 3. The brief facts of the case are that the assessee filed application for final approval under Section 80G(5)(iii) of the Act in Form No. 10AB on 02.08.2023. The assessee / Applicant Trust had been earlier granted provisional approval in Form No. 10AC on 24.09.2021 under Clause (iv) of first proviso. On receipt of application, CIT(E) observed that as per provisions of Section 80G(5) as it stands from 01.04.2021, since the assessee had got provisional approval under Section 80G(5) of the Act, the applicant was required to file application in Form No. 10AB under Clause (iii) of first proviso to sub-Section (5) of Section 80G of the Act with in the time period of at least six months prior to expiry of the period of the p....
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....ection 80G(5) of the Act. 5. In response, the Ld. D.R. submitted that since the Applicant Trust had filed application for grant of registration beyond the stipulated time, there is no error in the order of CIT(E) denying the grant of registration to the Applicant Trust. 6. We have heard the rival contentions and perused the material on record. 7. We observe that the ITAT in the case of Adani Education Foundation in ITA No. 359/Ahd/2023, has discussed the issue and has held that on a reasonable interpretation, there is no reason to provide for a distinction / different time line for accepting application for grant of final approval in respect of grant of registration in Form No. 10AB for registration under Section 12AB of the Act and for grant of final registration under Section 80G(5) of the Act. While passing the order, the ITAT made the following observations:- "8. In our considered view, the ITAT in the case of CIT-1982, Charitable Trust in ITA No. 827/Chennai/2023 has elaborately discussed the issue under consideration before us, after taking into consideration various judicial precedents which have been rendered in the past on the instant subject. The ITAT, in our conside....
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....rting section 12AB of the Act and amending the first and second proviso to sub-section (5) of section 80G of the Act. 7.4 We are concerned with the provisions of section 80G of the Act in these cases. In view of the above provisions, the deduction u/s.80G of the Act in respect of a donation made by a donor to a fund or institution referred to in sub-clause (iv) of clause (a) of subsection (2) of section 80G, shall be allowed to the donor only if a statement of such donations is furnished by the donee in Form 10BD. The certificate of such donation is required to be provided in Form No. 10BE. Further, Form No. 10BD and Form No. 10BE are required to be furnished on or before the 31st May, immediately following the financial year in which the donation is received. The timeline provided for filling of application for approval of Trust or any institution under the first and second proviso to sub-section (5) of section 80G of the Act is with in six months of commencement of activities or at least six months prior to expiry of provisional approval. These two timelines are provided in first proviso to section 80G (5) of the Act. But, the CBDT time and again considering the difficulties in f....
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....a 6.1 noted and the relevant reads as under:- There is no dispute as to the fact that assessee is provisionally registered till A.Y. 2024-25 vide order dated 27.10.2021. 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. We get support of our this view from the decision of Hon'ble Supreme Court in case of S. Nagaraj & Others Vs. State of Karnataka & Another 4 SCC 595. 7.6 Even in the decision of Jodhpur Bench of this Tribunal in the case of BhamashahSundarlal Daga Charitable Trust, supra, the assessee Trust received provisional approval u/s.80G(5) vide order dated 16.08.2022 for the period from 16.08.2022 to A.Y. 2025-26. The assessee has also got approval u/s.12A(1)(ac) of the Act from A.Y. 2022-23 to A.Y. 2026-27 and assessee filed ap....
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....other forms which were extended up to 30.09.2023 to the disputed forms namely Form No.10AB for renewal of recognition u/s.80G(5) of the Act under clause (iii) of the first proviso to section 80G(5) of the Act. Once, the CBDT has extended the timeline for filing Form No.10AB for recognition u/s.12A of the Act and also for filing Form No.10A for recognition u/s.80G of the Act extended up to 30.09.2023 for Trusts filing registration under clause (i) of first proviso to section 80G(5) of the Act, we find no difference in continuing hardship as recognized by CBDT even in filing Form No.10AB for renewal of recognition u/s.80G of the Act under clause (iii) of first proviso to section 80G(5) of the Act. In our view, this being a genuine hardship case, which is recognized by Revenue or CBDT by issuing a general circular, we are of the view that this specific provision of clause (iii) to first proviso to section 80G (5) cannot be excluded and or it has not been the intention of the CBDT while issuing the circular. There cannot be a distinction within the same provision without bringing out any exception and even this provision is for the benefit of the donors who are donating money to the ch....
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....tion 12A was extended due to genuine hardship faced by charitable institutions that extension should apply to renewal form under section 80G(5)(iii) as well and application for renewal could not be rejected solely on basis of late filing. 9. In the case of CIT-1982 Charitable Trust vs. ITO 160 taxmann.com 475 (Chennai - Tribunal), while passing the order the Tribunal held that the Timeline prescribed under clause (iii) of first proviso to section 80G(5) should be treated as directory and not mandatory, hence, once timeline prescribed for filing Form No. 10A for recognition under section 12A had been extended up to 30.09.2023, same may be treated as extended for forms namely Form No.10AB for renewal of approval/recognition/registration under clause (iii) of first proviso to section 80G also. 10. This brings us to the second issue regarding the interpretation of Amendment in the provisions of Section 80G (5) of the Act, effective from 01.04.2021, which provides that where the institution or fund has been provisionally approved, then the applicant was required to file application in Form No. 10AB under Section 80G(5)(iii) of the Act within the period of six months prior to expiry of....
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....ated 29.08.2021, to 25.11.2022 by Circular No. 22/2022 dated 01.11.2022 and further to 30.09.2023 by Circular No. 6/2023 dated 24.05.2023, and extended the due date for filing Form No. 10AB to 30.09.2022 by Circular No. 8/2022 dated 31.03.2022 and further to 30.09.2023 by Circular No. 6/2023 dated 24.05.2023. 2. Representations have been received in the Board with a request to condone the delay in filing Form No. 10A/10AB, as the same could not be filed in such cases with in the last extended date, i.e., 30.09.2023. 3. On consideration of the matter, with a view to avoid and mitigate genuine hardship in such cases, the Board, in exercise of the powers conferred under section 119 of the Act, hereby extends the due date of making an application/intimation electronically in - (i) Form No. 10A, in case of an application under clause (i) of the first proviso to clause (23C) of section 10 or under sub-clause (i) of clause (ac) of sub-section (1) of section 12A or under clause (i) ofthe first proviso to sub-section (5) of section 80G or in case of an intimation under fifth proviso of subsection(1) of section 35 of the Act, till 30.06.2024; (ii) Form No. 10AB, in case of an applica....