TaxTMI 
TaxTMI 
2024 (10) TMI 301
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....e be granted by directing the ld.CIT(E) to grant approval under section 80G and holding the application maintainable being within time. 2. The Assessee Trust craves its rights to add, amend or alter any of the grounds on or before the hearing." Submission of ld.AR for the Assessee : 2. Ms.Ruchika Sogani, Advocate-ld.AR of the assessee submitted that assessee is a Section 8 Company and it was incorporated on 17.02.2020. Assessee applied for provisional approval u/sec.80G and received provisional approval u/sec.80G on 01.12.2022. Assessee had applied for permanent registration u/sec.80G on 30.09.2023. The ld.AR explained that ld.CIT(E) has rejected the assessee's application only on one ground that assessee's application was filed beyond the time allotted u/sec.80G(5) of the Act, hence, the ld.CIT(E) held that assessee's application was not maintainable. The ld.AR relied on the order of the Hon'ble Madras High Court in the case of Sri Nrisimha Priya Charitable Trust Vs. CBDT [2024] 161 taxmann.com 209(Madras) dated 02.04.2024. The ld.AR also relied on the ITAT Jodhpur's order in Bhamashah Sundarlal Daga Charitable Trust vs. CIT(E) in ITA No.278/JODH/2023 dated 10.11.20....
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.... for the purposes of such business; and (c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business; (ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose; (iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; (iv) the institution or fund maintains regular accounts of its receipts and expenditure; (v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 2571 of the Companies Act, 1956 (1 of 1956), or is a Univ....
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.... of five years; (ii) where the application is made under clause (ii) or clause (iii) [or sub-clause (B) of clause (iv)] 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 down in clauses (i) to (v); (b) after satisfying himself about the genuineness of activities under item (A), and the fulfilment of all the conditions under item (B), of sub- clause (a),- (A) pass an order in writing granting it approval for a period of five years; or [(B) if he is not so satisfied, pass an order in writing,-- (I) in a case referred to in clause (ii) or clause (iii) of the first proviso, rejecting such application and cancelling its approval; or (II) in a case referred to in sub-clause (B) of clause (iv) of the first proviso, rejecting such application, after affording it a reasonable opportunity of being heard;] (iii) ....... New Procedure for registration: 6. The new provision for ....
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....s tool of interpretation to understand the intent of the Statute. Extract of relevant part of Speech of Hon'ble Finance Minister: 8. The Hon'ble Finance Minister in Budget Speech 2020 has said as under : Quote "In order to simplify the compliance for the new and existing charity institutions, I propose to make the process of registration completely electronic under which a unique registration number (URN) shall be issued to all new and existing charity institutions. Further, to facilitate the registration of the new charity institution which is yet to start their charitable activities, I propose to allow them provisional registration for three years. " Unquote. Finance Bill 2020 : "(vi) an entity making fresh application for approval under clause (23C) of section 10, for registration under section 12AA, for approval under section 80G shall be provisionally approved or registered for three years on the basis of application without detailed enquiry even in the cases where activities of the entity are yet to begin and then it has to apply again for approval or registration which, if granted, shall be valid from the date of such provisional registration....
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....rovisional approval or within six months of commencement of its activities, whichever is earlier" 10.2 The sub-clause says that the Institution which have provisional registration have to apply at-least six months prior to expiry of the provisional registration or within Six months of commencement of activities, whichever is earlier. 10.3 In continuation of this when we read the 'sub clause iii of Proviso' of section 80G(5), which we have already reproduced above, it is clear that the intention of parliament in putting the word "or within six months of commencement of its activities, whichever is earlier" is in the context of the newly formed Trust/institutions. For the existing Trust/Institution, the time limit for applying for Regular Registration is within six months of expiry of Provisional registration if they are applying under sub clause (iii) of the Proviso to Section 80G(5) of the Act. This will be the harmonious interpretation. 11. In this context, we will like to refer to observations of the Hon'ble Supreme Court in the case of K P Varghase(supra), where in the Hon'ble Supreme Court observed as under : Quote, "It is a well-recognised rule of constructio....
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....o A for the same price. Could it be contended in such a case that when B transfers the property to A for the same price at which he originally purchased it, he should be liable to pay tax on the basis as if he has received the market value of the property as on the date of resale, if, in the mean-while, the market price has shot up and exceeds the agreed price by more than 15 per cent. Many other similar situations can be contemplated where it would be absurd and unreasonable to apply section 52(2) according to its strict literal construction. We must, therefore, eschew literalness in the interpretation of section 52(2) and try to arrive at an interpretation which avoids this absurdity and mischief and makes the provision rational and sensible, unless of course, our hands are tied and we cannot find any escape from the tyranny of the literal interpretation. It is now a well-settled rule of construction that where the plain literal interpretation of a statutory provision produces a manifestly absurd and unjust result which could never have been intended by the Legislature, the Court may modify the language used by the Legislature or even 'do some violence" to it, so as to achiev....