TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 947
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....ed as not filed within six months of the commencement of the activities, as prescribed in the provisions of section 80G(5) of the Act. 4. Thus, the Assessee being aggrieved has preferred this appeal under consideration and contradicted the impugned order by relying on certain judgments, which we will deal later. 5. On the contrary the Ld. DR supported the impugned order. 6. We have given thoughtful consideration to the peculiar facts and circumstances and rival claims of the parties and material available on record. For brevity, let us peruse the relevant provisions of section 80G(5) of the Act, as applicable to the controversy/issue involved in this case, which read as under: "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,- .......................................................................................... .......................................................................................... ................................................ Where the institution or fund has been provisi....
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....evant Act and the relevant speech of the Hon'ble Finance Minister in the budget 2022, have also been dealt with by the Hon'ble Co-ordinate Bench of the Tribunal and ultimately in the identical circumstances and/or adjudicating the decision of the Ld. Commissioner in denying the regular registration u/s 80G(5) of the Act, held the identical application as filed in this case for regularization of registration, as valid and within the limitation by observing and holding as under: "5. The Commissioner of Income Tax (Exemption),Pune in the case of the Assessee held that the Activities of the Assessee had commenced in 04/03/1974, hence the assessee was liable to make application for Approval u/s 80G of the Act to file the present application within six months from the date of provisional approval i.e. on or before 18.02.2023 whereas the present application filed by the assessee on 27.03.2023 i.e. beyond the time limit allowed under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961, the ld.CIT(E) held it to be time barred. New Procedure for registration: 6. The new provision for Registration was introduced by Finance Act, 2020. There wa....
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....ntent 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. The application of registratio....
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....oval 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. If we agree with the interpretation of the ld.CIT(E), then say a trust which was formed in the year 2000, performed charitable activities since 2000, but did not apply for registration u/s. 80G, the said trust will never be able to ....
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....on. It would indeed be strange if obedience to the law should attract the levy of tax on income which has neither arisen to the assessee nor has been received by him. If we may take another illustration, let us consider a case where A sells his property to B with a stipulation that after sometime, which may be a couple of years or more, he shall resell the property to 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 ....