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TMI Blog2024 (1) TMI 946X X X X Extracts X X X X X X X X Extracts X X X X ..... on grounds of appeal. Therefore, all the appeals were clubbed, heard together and are decided by consolidated order to avoid conflicting decisions. 2. The Learned Authorized Representative (Ld.AR) for the assessee submits that all the appeals may be grouped in three categories, out of which facts in ITA Nos. 555 577 & 578/Srt/2023 are common and in second group in ITA No. 556 & 688/Srt/2023 are common and in remaining appeal in ITA No. 852/Srt/2023, the facts are unique, though common grounds of appeal is raised. With the consent of both the parties, the appeal in ITA No. 555/SRT/2023 in the case of "Gujarat Hira Bourse" is treated as "lead" case. The assessee in its appeal has raised the following grounds of appeal:- "(1) The learned CIT(Exemption) was not justified in rejecting application for final approval u/s 80G of the Act. (2) The learned CIT(Exemption) was not justified in rejecting the 80G application on technical grounds. (3) The appellant craves leave to add, alter or vary any of the ground(s) of appeal." 3. Brief facts qua the issue are that assessee was incorporated / set-p on 14.12.2000 and started its activities. After amendment in the Income Tax Act, 1961 by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the date of provisional registration. As per harmonious interpretation of first proviso to sub-section (5) of section 80G as the assessee-trust is an old institute and it did not hold. registration under section 80G prior to the amendment and it wanted to get registered under section 80G(5), so such benefits to the donors cannot be denied. The Ld. AR of the assessee relied on the case law in the case of Bhamashah Sundarlal Daga Charitable Trust vs. CIT(E), Jaipur in ITA No. 278/Jodh/2023 dated 10.11.2023 and in the case of Kavita Jasjit Singh vs. CIT(A) in ITA No. 1981/Mum/2023 dated 14.09.2023. The ld. AR for the assessee with the permission of bench also filed short written submissions on various submissions. 5. On the other hand, Ld.CIT-DR for the Revenue supported the order of Ld.CIT(E). The Ld.CIT-DR submits that as per CBDT's Circular, the assessee was required to apply for approval either within the extended prescribed period in CBDT's Circular No.8/2022 [F.No.197/59/2022-ITA-I] dated 31.03.2022, wherein time limit for filing application was extended up to 30.09.2022 or within six months from starting of activities, which is earlier. Thus, application filed by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and the object and purpose for which the legislation is enacted. This is an accord with the recent trend in juristic thought not only in western countries but also in India that interpretation of a statute being an exercise in the ascertainment of meaning, everything which is logically relevant should. be admissible. In fact there are at least three decisions of this Court, one in Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234, the other in Indian Chamber of Commerce v. CIT [1975] 101 ITR 796 and the third in Addl. CIT v. Surat Art Silk Cloth Manufacturers Association [1980] 121 ITR l/[1980] 2 Taxman 501, where the speech made by the Finance Minister, while introducing the exclusionary clause in section 2(15) of the Act, was relied upon by the Court for the purpose of ascertaining what was the reason for introducing that clause." 7.2 The Hon'ble Supreme Court has approved use of Hon'ble Minister's speech as tool of interpretation to understand the intent 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 "In order to simplify the compliance for the new and exi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to apply for registration u/s. 80G(5) of the Act. However, there is no bar in the Act that such trust or institutions cannot apply for registration u/s 80G in the new procedure. In these kinds of cases, the Trust/Institute though doing charitable activity may apply first for the 'Provisional Registration 'under the Act. After getting the Provisional Registration the Trust/Institution have to apply for Regular registration. These kind of Trust/Institutes will fall under sub clause (iii) of the Proviso to Section 80G(5) of the Act, since they have obtained Provisional registration. 10.1 In this background, we need to read the sub-clause (iii) of the Proviso to Section 80G(5) of the Act. For ready reference it is again reproduced here under : "iii) where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... airness and justice that in such cases, where there is clearly no understatement of consideration in respect of the transfer and the transaction is perfectly honest and bona fide and, in fact, in fulfilment of a contractual obligation, the asses-see who has sold. The property should. be liable to pay tax on capital gains which have not accrued or arisen to him. It would. indeed be most harsh and inequitable to tax the assessee on income which has neither arisen to him nor is received by him, merely because he has carried out the contractual obligation undertaken by him. It is difficult to conceive of any rational reason why the Legislature should. have thought it fit to impose liability to tax on an assessee who is bound by law to carry out his contractual obligation to sell the property at the agreed price and honestly carries out such contractual obligation. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee. However, in this case the ld.CIT(E) has not mentioned about any violation by the Assessee. Therefore, even on this ground the rejection is not sustainable. 13. However, the ld.CIT(E) has not discussed whether the Assessee fulfils all other conditions mentioned in the section as he rejected it on technical ground. Therefore, in these facts and circumstances we hold. that the Assessee had made the application in form 10AB within the prescribed time limit and hence it is valid application. Therefore, we direct the ld.CIT(E) to treat the application as filed within statutory time and verify assessee's eligibility as per the Act. The ld.CIT(E) shall grant opportunity to the assessee. Assessee shall be at liberty to file all the necessary documents before the ld.CIT(E). 14. Accordingly, the appeal of the assessee is allowed for statistical purpose. Since we have set aside to Ld.CIT(E), we do not intend to adjudicate each ground separately." 7. In view of the aforesaid factual and legal discussions and respectfully following the decision of Coordinate Bench of Jodhpur, we restore the matter back to the file of ld. CIT(E) to reconsider the application afresh by followi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the assessee submits that he adopts the similar submissions as made in earlier appeals and also relied on the same case laws. In addition to, in alternative submissions, the ld. AR for the assessee submits that the delay in filing / applying for regular approval of 123 days i.e. from 30.09.2023 till 31.01.2023 may be condoned as the assessee was under bonafide belief that the assessee has applied for approval well within time. The assessee acted in a bonafide manner and applied for regular approval immediately on receipt of provisional approval. The assessee, otherwise fulfil all the requisite conditions. 13. On the other hand, the ld. CIT-DR for the revenue supported the order of ld. CIT(E) and would submit that order impugned in the present appeal is as per statutory provisions and should. not be questioned by taking pleas of harmonious interpretation etc. 14. We have considered the rival submissions of both the parties and gone through the order of ld. CIT(E) carefully. We find that there is no much dispute on the facts regarding the starting of the activities of the assessee and for the date of application for regular application for approval under section 80G(5). The only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw. Needless to direct that before passing the order ld. CIT(E) shall grant opportunity to the assessee to filed additional submissions, if so desired. 17. In the result, this appeal is also allowed for statistical purpose. ITA No. 852/Srt/2023 (SDA Aarogya Trust) 18. The assesse in the present case was incorporated on 01.09.2021 and claimed to have started its activities from 23.12.22. The assessee applied for provisional approval under section 80G(5) on 30.10.2021 and was granted provisional approval on 06.11.2021, which is valid up to AY 2024-25. The assessee applied for regular approval under section 80G(5) vide application dated 26.04.2023 in Form-10AB. The application of the assessee was rejected vide order dated 17.10.2023 by taking view that commencement of activities of the assessee is 28.07.2022 and the assessee was required for regular approval under section 80G(5) on or before 28.01.2023, which the assessee failed, as per clause (iii) of proviso of section 80G(5). 19. The ld. AR for the assessee submits that limited dispute in this particular appeal is, on which date the activities of assessee commenced. The assessee received certain donation on 28.07.2022, which wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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