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TMI Blog2024 (6) TMI 1219X X X X Extracts X X X X X X X X Extracts X X X X ..... control of the appellant trust at that time. On facts and circumstances of the case, it is prayed before your honour's that delay in application filed in Form 10AB under section 80G(5) of the Act may please be condoned and necessary directions may please be given to Commissioner of Income-tax - Exemptions for granting approval u/s 80G(5) considering merits of the case. 2) The appellant hereby reserves the right to add, alter, amend or delete any ground/s of appeal. 2. There has been delay in filing of appeal by the assessee before this Tribunal. Assessee has filed an affidavit explaining the reasons for delay. We find there was sufficient reason for delay. Accordingly, delay is condoned. Findings & Analysis : 3. In this case, the ld.Commissioner of Income Tax(Exemption) has rejected the application of the assessee dated 24/05/2023 filed in Form 10AB for approval u/s 80G of the Act, only on one ground that the application is not maintainable as the assessee failed to file the present application within the time limit allowed under clause (iii) of first proviso to section 80G(5) of the Income Tax Act. 3.1 It is observed that assessee trust received Certificate under The Bomb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business; (ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose; (iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; (iv) the institution or fund maintains regular accounts of its receip ..... 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Commissioner or Commissioner, on receipt of an application made under the first proviso, shall,- (i) where the application is made under clause (i) of the said proviso, pass an order in writing granting it approval for a period of five years; (ii) where the application is made under clause (ii) or clause (iii) [or sub-clause (B) of clause (iv)] of the said proviso,- (a) call for such documents or information from it or make such inquiries as he thinks necessary in order to satisfy himself about- (A) the genuineness of activities of such institution or fund; and (B) the fulfilment of all the conditions laid down in clauses (i) to (v); (b) after satisfying himself about the genuineness of activities under item (A), and the fulfilment of all the conditions under item (B), of sub- clause (a),- (A) pass an order in writing granting it approval for a period of five years; or [(B) if he is not so satisfied, pass an order in writing,-- (I) in a case referred to in clause (ii) or clause (iii) of the first proviso, rejecting such application and cancelling its approval; or (II) in a case referred to in sub-clause (B) of clause (iv) of the first proviso, rejecting such app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xercise 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 the 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 : Quote "In order to simplify the compliance for the new and existing charity institutions, I propose to make the process of registration completely electronic under which a unique registration number (URN) shall be issued to all new and existing charity institutions. Fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, whichever is earlier. 10.3 In continuation of this when we read the 'sub clause iii of Proviso' of section 80G(5), which we have already reproduced above, it is clear that the intention of parliamen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken 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 or more, he shall resell the property to A for the same price. Could it be contended in such a case that when B transfers the property to A for the same price at which he originally purchased it, he should be liable to pay tax on the basis as if he has received the market value of the property as on the date of resale, if, in the mean-while, the market price has shot up and exceeds the agreed price by more than 15 per cent. Many other similar situations can be contemplated where it would be absurd and unreasonable to apply section 52(2) according to its strict ..... X X X X Extracts X X X X X X X X Extracts X X X X
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