TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 361
X X X X Extracts X X X X
X X X X Extracts X X X X
...., post 01.10.2023 provisional approval can be granted/sought by a trust or institution which has not yet commenced its activity. Thereafter, the Ld. CIT(E) quoted the provisions of section 80G(5) (w.e.f. 01.10.2023) as under "5. This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfills the following conditions, namely:- xxxxxxxxxx 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,- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (iv) in any other case, where activities of the institution or fund have (A) not commenced, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said approval is sought; (B) commenced and where no income or part thereof of the said institution ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and objectives as well as activities of the Assessee. 5. Now, we tabulate hereunder the details of the applications made by the Assessee for the grant of approval u/s 80G of the Act in the chronological order as under: Particulars Date of application Section under which application was filed Provisions of the Section Remarks Application for Provisional approval u/s 80G 05.02.2024 (INCORRECT SECTION) Sub-clause (A) of Clause (iv) of first proviso to subsection (5) of Section 80G The provisions of this subclause states, that, application can be filed by institution who has not commenced and the application is filed one month prior to the commencement of the AY for which approval is sought, copy of the application is placed at Page No. 18-21 of the Paper Book. However, the CORRECTION Section was sub-clause (B) of clause (iv) of first proviso to subsection 80G Order of provisions Approval u/s 80G 12.02.2024 The provisional approval was granted to the Assessee for the period of three years vide Unique Registration No.AAECL1487QF20241, Copy of the order is placed at page no.22-23 of the paper book. CORRECT SECTION: The A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....roval would have been granted FINAL APPROVAL for the period of 5 years f.e., AY 2024-25 to AY 2028-29. 6. So, in view of the facts stated in the above table, it is very humbly requested that the mistake on the part of the counsel of the assessee should not be fatal to the otherwise eligible claim of assessee in view of the settled law in case of the Hon'ble Punjab and Haryana High Court in the case of Manoj Ahuja (Minor) & An. Vs Inspecting Assistant Commissioner reported in 43CTR 229, more so when in both the scenarios, as explained above, the assessee would have been granted FINAL APPROVAL for the period of 5 years i.e., AY 2024-25 to AY 2028-29. 7. Thus, it is very humbly requested before the Hon'ble Bench to direct the Worthy CIT(Ex.), Chandigarh to reconsider the application filed by the Assessee on 18.03.2024, as filed by selecting the correct section and necessary approval may please be granted to the assessee from the date of filing of application." 6. We have heard both the parties and perused the material available on record. On similar facts, the Co-ordinate Bench of the Tribunal in the case of Society for Technology Business Incubator vs CIT....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he relevant provisions which contemplate the procedure required to be fulfilled. We take note of these provisions which read as under : "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) where the institution or fund is approved under clause (vi) [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020], within three months from the 1st day of April, 2021; (ii) where the institution or fund is approved and the period of such approval is due to expire, at least six months prior to expiry of the said period; (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; [(iv) in any other case, where activities of the institution or fund have- (A) not commenced, at least one month prior to the commencement of the previous year relevant to the asse....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (iii) of the 76[second] proviso shall be passed in such form and manner as may be prescribed, before expiry of the period of three months, six months and one month, respectively, calculated from the end of the month in which the application was received: Provided also that the approval granted under the second proviso shall apply to an institution or fund, where the application is made under- (a) clause (i) of the first proviso, from the assessment year from which approval was earlier granted to such institution or fund; (b) clause (iii) of the first proviso, from the first of the assessment years for which such institution or fund was provisionally approved; (c) in any other case, from the assessment year immediately following the financial year in which such application is made.] 4. Now we revert to the facts of the present case. The assessee is a Charitable Institution. It is enjoying benefit of Section 12AA of the Act because it is registered by CIT (Exemptions) Chandigarh under Section 12AA of the Income Tax Act. The Registration No. is AAQAS3676K23CD01. This registration was granted on 24.01.2024 and valid from 01.04.2024. On the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....m 1st day of April,2021 but this time limit has been extended by the CBDT time to time and lastly it was available upto the end of June, 2024 vide Circular No. 7 of 2024. The assessee has filed application on 07.05.2024. Thus, its application was within time but only error committed by the assessee was mentioning of the wrong Section. Therefore, we set aside the order of the CIT(Exemptions) and direct the CIT to grant approval to the assessee as if it is an old Institution which came into existence prior to 01.04.2021 and entitled for registration. Such registration be granted to the assessee by treating the application under sub-clause (i) for grant of regular registration and not as a provisional registration. The necessary certificate be issued accordingly. xxxxxxxxxx 8. In the result, appeal of the assessee is allowed." 6.1. Further, the CBDT vide Circular no.14 XL-35 dated 11.04.1995 states that it is one of their duties of the Officers of the Department to assist a taxpayer in every reasonable way, particularly in the matter of claiming and securing reliefs and in this regard the officers should take the initiative in guiding a taxpayer where proceedings or oth....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n such situation, in view of the above Board Circular it was the duty of the ld. CIT(E) to inform the assessee about the said mistake and ask the assessee to rectify it. However, despite the mistake in the said application, the provisional registration certificate in Form No.10AC dated 12.02.2024 was granted for AY 2024-25 to AY 2026- 27 under Sub-clause (A) of Clause (iv) of first proviso to sub-section (5) of section 80G of the Act. The assessee in sync with the said approval applied under Clause (iii) of first proviso to sub-section (5) of Section 80G of the Act, which states, that, application can be filed by the institutions having provisional approval, within six months of commencement of activities. 6.4. As per the second proviso to sub-section-5 of 80G of the Act, the ld. CIT(E) on receipt of an application made under the second proviso and where the application is made under clause (ii) or clause (iii) [or subclause (B) of clause (iv)] of the said proviso, may reject an application or cancel its approval only when the ld. CIT(E) was not satisfied about the genuineness of the activities under item (A) and the fulfillment of all the condition under item (B) of subclause (....