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2024 (3) TMI 839 - ITAT KOLKATAApplication for final approval u/s 80G(5)(iii) - time limit prescribed for making an application for final approval u/s 80G - application of the assessee rejected as the assessee had already commenced its activities since long and since the time period for making application mentioned in Clause (iii) to First Proviso to section 80G(5) of the Act had already expired, therefore, the assessee could not be granted final registration u/s 80G(5) HELD THAT:- CBDT Circulars regarding the exemption of date for final applications for approval are applicable only for the institutions who stood already registered on the date of Amendment and have made application for renewal of the registration without any time break. However, the said last date which has been extended to 30.09.23 by CBDT Circular No.6 of 2023 is not applicable for the institutions who have filed application for fresh provisional registration under Clause (iv) to First Proviso to section 80G(5) of the Act and thereafter for making application under Clause (iii) to First Proviso to section 80G(5) of the Act. As observed above, for making application for final registration under Clause (iii) to First Proviso to section 80G(5) of the Act, the institution must have been provisionally registered either under Clause (i) or Clause (iv) to First Proviso to section 80G(5) of the Act. Therefore, after grant of provisional approval, the application cannot be rejected that the institution had already commenced its activities even prior to grant of provisional registration. Under such circumstances, the date of commencement of activity will be counted when an activity is undertaken after the grant of provisional registration either under Clause (i) or Clause (iv) to First Proviso to section 80G(5) of the Act. In the case in hand, the assessee admittedly has applied for final registration after grant of provisional registration under Clause (iv) to First Proviso to section 80G(5) of the Act and therefore, the application filed by the assessee is within limitation period. The issue is squarely covered by the decision of Vivekananda Mission Asram [2023 (12) TMI 1298 - ITAT KOLKATA] and in the case of West Bengal Welfare Society vs. CIT(Exemption) (2023 (9) TMI 1422 - ITAT KOLKATA]. Therefore, the impugned order of the CIT(Exemption) is set aside and the ld. CIT(Exemption) is directed to grant provisional approval to the assessee under Clause (iii) to First Proviso to section 80G(5) of the Act, if the assessee is otherwise found eligible. Appeal of the assessee stands allowed.
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