TaxTMI 
TaxTMI 
2024 (10) TMI 1173
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....t CIT has no jurisdiction to cancel the Provisional Approval without giving proper show cause notice. 3) Submission of Ld.DR: Ld.DR relied on the order of the CIT(E). 4) Findings and Analysis : We have heard both the parties and perused the records. It is an admitted fact that Assessee filed an application u/s 80G(5) of the Act in the prescribed form on 26/09/2023. The Commissioner of Income Tax(exemption) rejected the application of the assessee accusing it to be beyond time. The relevant Paragraph of the CIT(E) order is reproduced here as under : Quote, "In view of the above, the present application filed in Form 10AB under clause (iii) of First proviso to section 80G(5) of the Act is liable to be rejected without going into the merits since the assessee has not filed the present application within the time limit allowed under clause (iii) of first proviso to section 80G(5) of the Income Tax Act 1961 "Unqote. 4.1) In this case the assessee had started activities in 1986. 4.2) The CIT(E) held that the assessee's application dated 26/9/2023 was filed beyond the statutory time limit. 4.3) In this case assessee has provisional approval u/s80G(5) of the Act ....
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.... 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 University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law, or is an institution financed wholly or in part by the Government or a local authority; ....
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....(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) where the application is made under sub-clause (A) of clause (iv) of the said proviso or the application is made under clause (iv) of the said proviso as it stood immediately before its amendment vide the Finance Act, 2023, pass an order in writing granting it approval provisionally for a period of three years from the assessment year from which the approval is sought,] ....
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....ation 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. The application of registration subsequent to provisional registration should be at least six months prior to expiry of provisional registration or within six months of start of activities, whichever is earlier" 4.9) Thus, when we read the Budget Speech of Hon'ble Finance Minister 2020 and the Memorandum of Finance Bill 2020 together, it becomes....