2024 (11) TMI 220

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....was sought by assessee, by stated that filed belatedly or not..? For this purpose, assessee / appellant raised multiple grounds which are factual and argumentative, so it is not required to be produced. 3. Heard rival submissions and carefully scanned the material available on record before us. 4. The Ld. AR submitted that while deciding his application, the Ld. CIT(E) did not notice the "Clarification Calendar No. 6 of 2023 dated 24.05.2023", wherein para 5 CBDT had in exercise of its power u/s 119 of the Act had extended the period of limitation till 30.09.2023. 5. The Ld. DR relied upon the order passed by CIT(E). 6. In the impugned order, the Ld. CIT(E) observed that activities of the applicant has commenced prior to F.Y. 2019-20 and the present application has not filed within time prescribed. Para no. 6.4 of impugned order is reproduced as below: "6.4 From the above, it is evident that the activities of the applicant has commenced prior to FY 2019-20 and the present application filed in Form No.10AB under Clause (iii) of first proviso to sub-section (5) of section 80G of the Act has not been filed within the time limit prescribed therein and also the assessee has not fi....

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....ion 80(G) of the Act or not? In this regards he submitted that the said application had been filed within prescribed time limit and the second limb of clause could not been acted which was an impossibility and since the provisional approval had been granted till 31.03.2025. The application filed on Form 10AB on 30.09.2023 could not been treated as time barred. 10. In support of argument advanced on behalf of the assessee, following orders relied upon: * CIT-1982 charitable Trust u/s ITO (2024) 160 taxmann.com 475 (Chennai) * (2024) 160 taxman.com 174 (Kolkata) Tomorrow's Foundation v/s Commissioner of Income Tax (Exemption) * (2024) 160 taxman.com 624 (Kolkata) Anudip Foundation for social welfare v/s CIT (Exemption) * (2024) 160 taxman.com 154 (Pune) Birmani Charitable Foundation v/s CIT (Exemption) 11. It is submitted by the Ld. AR that previously vide clarification circular no. 06/2023 dated 24.05.2023 CBDT had in exercise of its power u/s 119 of the Act, extended the period of limitation till 30.09.2023 by which limit had been since extended till 30.09.2023 for grant of approval. In this context, he also relied upon order of the ITAT Chennai Bench, dated 08.03.2024, C....

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....ion 80G(5) of the Act should be treated as directory and not mandatory especially considering the transitional nature of the amendment as brought out by the taxation of other laws (relaxation and amendment of certain provisions) act 2020 for bringing new regime. Hence, in our view, the CIT(Exemptions) should not have rejected the assessee's application in Form No.10AB only for this technical reason. We are of the view that the intention of CBDT in its circular clearly reflects their mind that once the timeline prescribed for filing Form No.10AB for recognition u/s.12A of the Act has been extended up to 30.09.2023, the 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 of the Act also. Hence, we accept the plea of assessee and agree with the arguments of Id. counsel for the assessee and remand the matter back to the file of the CIT(Exemption) to decide the issue on merits. Hence, the order of CIT(Exemption) on this issue is set aside and matter is remanded back to the file of the CIT(Exemption) for re-deciding the issue on merits as per law. The appeal of the assessee i....

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....iii) of the first proviso to clause (23C) of section 10 or under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A or under clause (iii) of the first proviso to sub-section (5) of section 80G of the Act, till 30.06.2024. 4. It may also be noted that extension of due date as mentioned in paragraph 3(ii) shall also apply in case of all pending application under clause (iii) for the first proviso to clause (23C) of section 10 or sub-clause (iii) of clause (ac) of sub-section (1) of section 12A or under clause (iii) of the first proviso to sub-section (5) of section 80G of the Act, as the case may be. Hence, in cases where any trust, institution or fund has already made an application in Form No.10AB under the said provisions on or before the issuance of this Circular, and where the Principal Commissioner or Commissioner has not passed an order before the issuance of this Circular, the pending application in Form No. 10AB may be treated as a valid application. 4.1 Further, in cases where any trust, institution or fund has already made an application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application,....