TaxTMI 
TaxTMI 
2025 (11) TMI 990
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....eal. "1. On the facts and in the circumstances of the case and in law, the Ld. CIT (Exemptions) erred in rejecting the application of the appellant for approval under section 80G of the Act, without appreciating the facts and submissions made. 2. The Ld. CIT (Exemptions) erred in holding that the application was filed belatedly, ignoring that the appellant had already filed the application within the extended time limit as per CBDT Circular No. 7/2024 dated 25.04.2024. 3. The Ld. CIT (Exemptions) erred in rejecting the application on the alleged ground that the trust deed contains objects permitting expenditure outside India, without appreciating that - (a) the objects are enabling in nature and must be r....
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....he ground of application made under wrong section vide order dated 31.08.2024. The assessee subsequently, filed fresh application mentioning the correct section on 18.11.2024. the Ld. CIT(E) rejected the second application also on the grounds of that (a) the application was not filed within prescribed time and (b) certain clauses in the trust deed indicate possibility of expenditure outside India which is allegedly violating Section 11. The assessee is in appeal against the order of the Ld. CIT(E). 3. The Ld. AR submitted that, the assessee made the original application for regularizing the 80G registration within the time extended by the CBDT Circular No. 7/2024 dated 25.04.2024. The Ld. AR further submitted that, the CBDT extended the ....
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....e rejecting the application has not considered any of the submissions of the assessee. 4. The Ld. DR on the other hand, relied on the order of the Ld. CIT(E). 5. We have heard the parties and perused the material on record. The assessee is a Charitable Trust having registration under section 12A of the Act (page 52 to 55 of paper book). The assessee made first application for renewal of 80G on 29.03.2024 and the same was rejected on the ground that the application is made under wrong section. The relevant observation of the CIT(E) in this regard are extracted below: "1. M/s Nilesh Kulkarni Foundation hereafter the applicant or the assessee) fled application in Form 10AB seeking approval under section 80G(5) of the Income Tax ....
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....nable for delay in filing the second application. The CIT(E) also rejected the 80G registration for the reason that the object clause of the Trust-deed includes application outside India. From the perusal of the order of the CIT(E) we notice that the CIT(E) has considered rejected the application on above stated grounds and has not considered the other details submitted on merits (page 77 to 94 of paper book). In this regard we notice that the Co-ordinate Bench in various cases has been consistently taking the view that mere mention of wrong section cannot be the ground for rejecting the registration under section 80G unless the assessee is otherwise not eligible. It is also relevant to consider the observations of the Kolkatta Bench of the....
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....ns 11 and 12 or clause (23AA) or clause (23C) of section 10 : Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if- (a) the institution or fund maintains separate books of account in respect of such business; (b) the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and (c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such b....
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....approved under clause (vi) for the previous year beginning on the 1st day of April, 2007 and ending on the 31st day of March, 2008, such institution or fund shall, for the purposes of this section and notwithstanding anything contained in the proviso to clause (15) of section 2, be deemed to have been,- (a) established for charitable purposes for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009; and (b) approved under the said clause (vi) for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009; (viii) the institution or fund prepares such statement for such period as may be prescribed and deliver or cause to be deliv....