TaxTMI 
TaxTMI 
2025 (1) TMI 1742
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....he Income Tax Rules, 1962. 2. That finding of the learned Commissioner of Income Tax (Exemptions) that "activities of the applicant has commenced on 11.11.2008 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 filed its application within the extended time limit provided by CBDT vide its circular no. 12 of 2021 dated 25.6.2021, circular no. 16 of 2021 dated 29.8.2021 and circular no. 8 of 2002 dated 31.3.2022 which are discussed in para 8 above. Therefore the above application is liable to be rejected as non maintainable without going into the merits" is based on incorrect interpretation of provision of the Act and the Rules and therefore unsustainable. 3. That conclusion that "the present application filed in Form No. 10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the Act is rejected as non maintainable" is also based on incorrect interpretation of provision of the Act and the Rules and therefore unsustainable 4. That even otherwise the learned Commissio....
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....y misconceived and unsustainable. 5. That finding of the learned Commissioner of Income Tax (Exemptions) that "no reply was received from, the applicant. No. details regarding the activities being done by the applicant were furnished In the absence of submissions regarding the activities, it is difficult to verify both the nature of objects and genuineness of activities of the applicant. It can safely be concluded that the queries raised could not be answered satisfactorily by the applicant" is factually incorrect, legally misconceived and therefore unsustainable. 6. That conclusion of the learned Commissioner of Income Tax (Exemptions) that "the application filed by the application for registration u/s 12AB of the Act is hereby rejected, which rejection and consequent lack of registration will apply from the F.Y. 2022-23 onwards and also supersede any registration granted u/s 12AB or 12AA of the Act by any authority at any earlier time" is also not based on correct appreciation of facts on record and therefore unsustainable. 7. That even otherwise the learned Commissioner of Income Tax (Appeals) passed the order without granting sufficient proper opportu....
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.....2021 and circular No. 8 of 2022 dated 31.03.2022 which are discussed in Para 8 above. Therefore the above application is liable to be rejected as non maintainable, without going into the merits." 6. Heard rival submissions and carefully scanned the material available on record before us. 7. In the course of hearing, the Ld. AR submitted that in the present case the period for which provisional approval had been granted was expired on 31.03.2024 and not before and the application presented for the purpose of grant of an approval in Form 10AB under the relevant provision within prescribed time limit i.e. prior to 31.03.2024. He further submitted that the second limb of the aforesaid clause is inapplicable in the present case, as much as the time of six months from the commencement of its activities could not be invoked, since it had been carrying on its activities since the dynasty rule of Aurangzeb in India, which is an admitted fact i.e. prior to enactment of the Act. 8. The Ld. AR further vehemently submitted that it is not known on what basis the Ld. CIT(E) has referred to in his order the period from F.Y., despite the fact, the activities of the appellant had commenced....
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....egistration u/s.12A of the Act in the case of assessee trust has been extended up-to 30.09.2023 after considering the genuine hardship faced by charitable institutions vide various CBDT circulars and finally, vide Circular No.6/2023 dated 24.05.2023. Similarly, the timeline prescribed for filing Form No.10A for recognition u/s.80G of the Act was also extended up-to 30.09.2023 by the same circular for trusts filing registration under clause (i) to first proviso to section 80G(5) of the Act. But the above extension was not extended beyond 30.09.2022, unlike other forms which were extended up to 30.09.2023 to the disputed forms namely Form No.10AB for renewal of recognition u/s.80G(5) of the Act under clause (iii) of the first proviso to section 80G(5) of the Act. Once, the CBDT has extended the timeline for filing Form No.10AB for recognition u/s.12A of the Act and also for filing Form No.10A for recognition u/s.80G of the Act extended up to 30.09.2023 for trusts filing registration under clause (i) of first proviso to section 80G(5) of the Act, we find no difference in continuing hardship as recognized by CBDT even in filing Form No.10AB for renewal of recognition u/s.80G of the Act....
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....regime and application for above purpose in Form 10AB should not reject on merely technical reasons. 13. In the course of hearing it was brought into our notice that further CBDT issued Circular No. 07/2024 dated 25.04.2024 by which above time limit extended till 30.06.2024. The relevant portion of the aforementioned circular is reproduced as under: " On consideration of difficulties reported by the taxpayers and other stakeholders in the electronic filing of Form No. 10A/10AB, the Central Board of Direct Taxes (the Board) in exercise of its powers under section 119 of the Income-tax Act, 1961 (the Act) extended the due date for filing Form No. 10A to 31.08.2021 by Circular No. 12/2021 dated 25.06.2021, to 31.03.2022 by Circular No. 16/2021 dated 29.08.2021, to 25.11.2022 by Circular No. 22/2022 dated 01.11.2022 and further to 30.09.2023 by Circular No. 6/2023 dated 24.05.2023, and extended the due date for filing Form No. 10AB to 30.09.2022 by Circular No. 8/2022 dated 31.03.2022 and further to 30.09.2023 by Circular No. 6/2023 dated 24.05.2023. 2. Representations have been received in the Board with a request to condone the delay in filing Form No. 10A/10AB, ....
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....ng trust, institution or fund who had failed to file Form No. 10A for AY 2022-23 within the due date as extended by the CBDT circular no. 6/2023 dated 24.05.2023 and subsequently, applied for provisional registration as a new trust, institution or fund and has received Form No. 10AC, it can avail the option to surrender the said Form No. 10AC and apply for registration for AY 2022-23 as an existing trust, institution or fund in Form No. 10A within the extended time provided in paragraph 3(1) i.e. 30.06.2024." 14. Upon hearing arguments by both sides at length, there is substance in the submission of the Ld. AR that in the instant case provisional approval u/s 80G of the Act had been granted to the appellant from 01.01.2022 to AY 2024-25, so period for which provisional approval had been granted was expired on 31.03.2024 and not before and further that the second limb of the aforesaid clause was inapplicable in appellant case. 15. We are of the considered opinion that rule of procedure are just to handmaid to administration of justice and not to penalise anybody and object of procedure only for interest of justice and the time limit prescribed in aforementioned provisions and ....