TaxTMI 
TaxTMI 
TaxTMI 
2024 (6) TMI 1509
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....ovisions of section 80G(5)(iii) of the Income tax Act, 1961 (hereinafter referred to as the "Act") vide DIN No. ITBA/EXM/F/EXM45/2023-24/1061357388(1) dated 22.02.2024, whereby the provisional certificate issued to the assessee was also cancelled. 2. Grounds of appeal raised by the assessee read as under: "1. For that on the facts and circumstances of the case, the Ld. CIT(Exemption), Kolkata was not justified in rejecting the application for grant of approval u/s. 80G(5)(iii) filed by the assessee trust in Form No. 10AB under Rule 17A of the Income Tax Rules, 1962. 2. The appellant craves leave to add further grounds of appeal or alter the grounds at the time of hearing." 3. The brief facts of the case are that the assessee was gra....
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.... AY 2022-23 to AY 2026-27 by the Ld. CIT(E). The trust was granted provisional registration u/s. 80G(5) of the Act vide order dated 02.09.2022 for the period from 02.09.2022 to AY 2025-26. The application for registration could not be filed in Form No. 10AB as the accountant of the trust was not aware of the latest amendment of the income tax provision. The delay in filing Form No. 10AB u/s. 80G(5) was due to bona fide reasons and there was no mala fide intention and the delay was owing to oversight. It was stated that the assessee cannot be penalised for the error of the accountant and the trust was carrying on charitable activities since inception and exemption had been claimed prior to 01.04.2021 also. The assessee requested for condonat....
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....have examined the matter and have heard the rival contentions. Ground No.2 is general in nature and does not require any separate adjudication. 5. Ground No. 1 relates to the rejection of the application of the assessee. It applied for approval u/s. 80G(5)(iv) whereas being an old trust and apparently granted approval earlier, the same should have been applied in clause (i) of the proviso to sub-section 5 of section 80G if the approval was granted earlier. The assessee applied for registration u/s. 80G(5)(iv) i.e. as a new trust erroneously and was granted provisional approval from 02.09.2022 to 2025-26 in Form No. 10AC. Subsequently, it applied for approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Act o....
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....er applied for grant of a regular registration under sub-clause (iii), which is meant for those Trust or Society, which came after April, 2021. In view of the above, he was of the opinion that being an old Trust, the assessee has applied for a provisional registration and thereafter regular registration. But such application is not in consonance with the procedure laid down under sub-clause (iii) as well as sub-clause (iv) and, therefore, on account of this technical aspect, he rejected the application of the assessee. 6. With the assistance of ld. Representatives, we have gone through the record carefully. As observed earlier, had application was moved under sub-clause (i) instead of applying for provisional registration, then no disput....
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....unished on this technical ground. The impugned orders of the CIT(E) are, therefore, set aside and it is directed that the ld. CIT(E) will consider the applications filed by the assessee in Form 10AB as being flied in the relevant prescribed form which is required for making applications for the institutions who are already registered as on 0l.04.2021 and the applications moved by the assessee will be treated as being moved u/s. 12A(ac)(i) of the Act and under Clause (i) to the First Proviso to section 80G(5) of the Act respectively and the CIT(E) will grant the provisional registration accordingly. The Ld. CIT(E) will decide both the applications of the assessee within two months of the receipt of copy of this order." 7. Since it was a te....