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TMI Blog2024 (9) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... has made application for final registration within the validity of provisional registration and that the provisional registration is valid till AY 2025-26. 3. On the facts and in circumstances of the case as well as law, the ld. CIT(Exemption) has erred in rejecting assessee's application u/s 80G (5) filed on 28.03.2023 on the ground that assessee didn't file the application before 30.09.2022 when the assessee has filed the application in time as per the extension granted till 30.09.2023 as per Circular No.6/2023 dated 29-05-2023 4. Even otherwise, the Ld. CIT(Exemption has erred in rejecting application us 80G(5) filed on 28.03.2023, when the assessee was under honest belief that extension was granted till 30.09.2023 as per Circular no. 6/2023 dated 29.05.2023 5. It humbly prayed that the CIT(Exemption) may be directed to set aside the rejection order passed under us 80G(5) and to grant approval under section 80G(5) of the Income Tax Act 1961 with appropriate direction 6. It is humbly prayed to condone delay in filing form No 10AB for approval under section 80G(5) of the Act 7. Appellant craves leave to add, alter on delete any ground(s) either before or in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... why the present application filed in section 80G (5) (ii) in form No. 10AB should not be treated as not filed within due date specified in the Act & why the same should not be rejected as non-maintainable" 6. The applicant has filed its response on 17/08/2023 where in the applicant has submitted the date of commencement of its activities as 01/05/2004. The relevant portion of the reply is reproduced here under "We have filed form 10AB on 28/03/2023 and Form 10A on 19/102022 so we have filed application is within the due date so we fall under this section 800/ correct. The filed application in section 800m treated as not filed within due date would not be Decision 7. The reply of the applicant has considered carefully however not found acceptable. The date of commencement of activities in this case is 01/05/2004. In view of discussion in Para 3 and Para 4 above the applicant was required to file application in Form 10AB in this case on or before 30/06/2022, which he has failed to submit. Therefore, the present application in Form No. 1048 us 80G (5) of the Act has not been filed with in the time limit prescribed therein and therefore the same is liable to be rejected as suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sume that the assessee / Applicant Trust had commenced it's activities prior to Amendments brought in grant of registration of Trust effective from 01.04.2021. Therefore, the first question for our consideration is that since vide Circular No. 8/2022 dated 31.03.2022, the date of grant of registration under Section 80G(5) of the Act was extended to 30.09.2022 and vide Circular No. 6/2023 dated 24.05.2023, this date was not extended beyond the period of 30.09.2022 so far as filing of Form 10AB under Section 80G(5)(iii) of the Act is concerned and only the time for grant of registration under Section 12AB of the Act was extended to 30.09.2023, can a view / interpretation be taken that the time limit for filing of application in Form 10AB for grant of registration under Section 80G(5) of the Act had also been extended to 30.09.2023. We observe that the ITAT in the case of Adani Education Foundation in ITA No. 359/Ahd/2023, has discussed the issue and has held that on a reasonable interpretation, there is no reason to provide for a distinction / different timeline for accepting application for grant of final approval in respect of grant of registration in Form No. 10AB for registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 80G (5), the first and second provisos, which were made applicable with effect from 01.04.2021 for existing Trusts as well as new Trusts or entities. This amendment is brought in by Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 amended the provisions related to application by a Trust for registration or approval by amending the first and second proviso to clause (23C) of section 10, clause (ac) of sub-section (1) of section 12A of the Act, inserting section 12AB of the Act and amending the first and second proviso to sub-section (5) of section 80G of the Act. 7.4 We are concerned with the provisions of section 80G of the Act in these cases. In view of the above provisions, the deduction u/s.80G of the Act in respect of a donation made by a donor to a fund or institution referred to in sub-clause (iv) of clause (a) of subsection (2) of section 80G, shall be allowed to the donor only if a statement of such donations is furnished by the donee in Form 10BD. The certificate of such donation is required to be provided in Form No. 10BE. Further, Form No. 10BD and Form No. 10BE are required to be furnished on or before the 31st May, immediately fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iv) of first proviso to section 80G(5) of the Act. In that case, the provisional registration was granted in form No.10AC on 27.10.2021. Admitted fact in the case is that the assessee Trust commenced its activities from 13.10.2021 being new Trust and assessee filed application for grant of approval under clause (iii) of first proviso to section 80G (5) on 16.12.2022, which is delayed by almost about 2.5 months from the extended date. The Tribunal considered this issue and finally in para 6.1 noted and the relevant reads as under:- There is no dispute as to the fact that assessee is provisionally registered till A.Y. 2024-25 vide order dated 27.10.2021. Thus it has complied with section 80G (5). The proviso to this section only deals with the procedure as to the filing of the application. The law of procedure has to be approached, understood and appreciated as a helpmate in the course of the process of administration of justice. Procedural provision should be so construed as to sub serve the course of justice and not to hinder it. It is a settled proposition of law that technicalities should not come in way in imparting the substantial justice. We get support of our this view fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtended 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 under clause (iii) of first proviso to section 80G(5) of the Act. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... file of CIT(Exemption) for re-deciding the issue of grant of final registration under Section 80G (5) of the Act, on merits, as per law. 10. In the result, the appeal of the assessee is allowed for statistical purposes." 8. The Chennai ITAT in the case of Periyar Maniammai Academy of Higher Education and Research vs. CIT(E), reported in 161 taxmann.com 533 (Chennai - Tribunal), while passing the order the Chennai Tribunal has held that where timeline for filing Form 10AB under section 12A was extended due to genuine hard ship faced by charitable institutions that extension should apply to renewal form under section 80G(5)(iii) as well and application for renewal could not be rejected solely on basis of late filing. 9. In the case of CIT-1982 Charitable Trust vs. ITO 160 taxmann.com 475 (Chennai - Tribunal), while passing the order the Tribunal held that the Timeline prescribed under clause (iii) of first proviso to section 80G(5) should be treated as directory and not mandatory, hence, once timeline prescribed for filing Form N0.10A for recognition under section 12A had been extended up to 30.09.2023, same may be treated as extended for forms namely Form No.10AB for renewal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of due date for filing of Form No. 10A/10AB under the Income-tax Act, 1961-reg. 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. 1212021 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, as the same could not be filed in such cases within the last extended date, i.e., 30.09.2023. 3. On consideration of the matter, with a view to avoid and mitigate genuine hard ship in such cases, the Board, in exercise of the powers conferred under section 119 of the Act, hereby extends ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id Form No. 10AC and apply for registration for A Y 2022-23 as an existing trust, institution or fund in Form No. 10A within the extended time provided in paragraph 3(i) i.e. 30.06.2024." 13. Accordingly, since in the instant facts, as it evident from the various dates mentioned above, the assessee / Applicant Trust had filed application for grant of final approval under Section 80G(5) of the Act within a period of six months from date of grant of provisional registration and as noted by us in the preceding paragraph, the assessee could have filed application for grant of approval on or before 30.09.2023 which stands further extended to 30.06.2024 vide Circular No. 7/2024 dated 25.04.2024 then, in our considered view, the application for grant of final registration under Section 80G(5) of the Act could not be denied only on the ground that the same was not filed before 30-09-2023. Accordingly, looking into the instant facts, in our considered view, the matter is restored to file of Ld. CIT(E) de-novo consideration after giving due opportunity of hearing to the assessee. 14. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the ope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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