9911796707
TMI Blog2025 (3) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... trust created on 06.11.2015. The assessee filed an application in form No.10AB on 26.09.2023 seeking registration u/s 12A of the Act. 5. In order to examine and verify the genuineness of the objects of the trust or institution, in the light of the provisions of section 12AA of the Act, the CIT(Exemption) issued a questionnaire electronically on 27.10.2023 to which the assessee filed a reply and sought further time for more submissions. The CIT (Exemption) considered the submissions filed and held that the assessee does show any charitable activities but objects of the memorandum of Association does not conclusively prove the genuineness of the activities and she rejected the registration. 6. Now the assessee is in appeal before us. 7. Before us, the Counsel for the assessee vehemently stated that the ld. CIT(A) was not right in rejecting the application of the assessee for registration u/s 12A of the Act. The ld counsel of the assessee argued that the society case fell under the provisions of section 12A(1)(ac)(vi), and it filed an application on 16.09.2022. Provisional registration in Form No 10AC was issued on 23.09.2022 for period AY 2023-24 to AY 2025-26. Form No 10AB was f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical purpose. ITA No. 1798/DEL/2024 11. The solitary grievance of the assessee is that ld. CIT(E) was not justified in not granting approval u/s 80G of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short]. 12. Brief facts of the case is that the society filed Form No 10A u/s 80G(5)(ix) clause (iv) of first proviso on 16.09.2022. Provisional registration in Form No 10AC was issued on 23.09.2022 for the period 23.09.2022 to AY 2025-26. Form No 10AB was filed on 26.09.2023 u/s 80G(5)(ix) clause (iii) of Ist proviso. It was rejected by CIT(E) vide Form No 10AD dated 11.03.2024 because application was late since not made with 6 months from commencement of business which has taken place long back. The due date of filing 10AB was extended to 30.09.2023 by Circular No 6/2023 dated 24.05.2023 but it did not cover the 80G cases. The assessee could not further apply in Form No 10AB in view of time extended upto 30.06.2024 vide Circular No 7 dated 25.04.2024 as u/s 80G(5)(i) assessee was to be registered u/s 12A and its registration application was already rejected by the CIT(E). 13. The counsel of the assessee submitted that as assessee society was incorporate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or five years by the Id. CIT(Exemption) without any enquiry. The prescribed date for final application for approval under Clause (i) to the First Proviso to section 80G(5) of the Act was stipulated as three months from 1st Day of April 2022. However, the CBDT from time to time extended the date for filing of the said application under Clause (i) to the First Proviso to section 80G(5) of the Act and finally vide Circular No.6 of 2023 dated 24.05.2023, the said date was extended upto 30.09.2023. Further, the institutions which had to apply for The first time or the institutions which did not stand approved on the date of Amendment i.e. 01.04.2021 brought by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, they could apply under Clause (iv) of the First Proviso to section 80G(5) of the Act. In that case, the ld. CIT(Exemption) is supposed to make necessary enquiries and if found satisfied regarding the genuineness of the activities of such an institution would grant provisional approval for five years. In both the cases the institutions which have been granted approval under Clause (i) or the institutions which have been granted approval under Cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that the assessee, who has been granted provisional registration, is eligible to apply for final registration irrespective of the fact that the assessee had already commenced its activity even prior to the date of grant of provisional approval. The relevant part of the order of the Coordinate Bench is reproduced as under: 6. We note that the ld. CIT(E) has misconstrued the aforesaid proviso to section 80G(5) of the Act. As per the provision, an application for final registration cannot be filed until and unless an assessee/trust has been given provisional approval u/s 80G(5)(iv) of the Act. The assessee was granted provisional approval on 30.11.2022 only, and within a few days i.e. on 03.12.2022, the assessee applied for final registration u/s Clause (iii) of 1st Proviso to section 80G(5) of the Act. Though the assessee might have commenced its activities prior to grant of provisional registration but that does not mean that the assessee in that event will be precluded from applying for final registration even after the grant of provisional registration. The assessee as per statutory provision could not have directly applied for final registration without grant of provisional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviso to section 80G(5) of The Act and not by the CBDT Circular for the purpose of limitation. CBDT Circular is for extension of date to help the institutions which could not apply under Clause (i) within stipulated period of three months, and not for curtailing limitation or barring institutions for final registration under Clause i to First Proviso to section 80G(5) of the Act. 5.2 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. 5.3 In our humble understanding, if the view of the Id. CIT(Exemption) is accepted to be correct, then no institution which has already been into charitable activities before seeking provisional approval under Clause (iv) to First Proviso to section 80G(5) of the Act would ever be entitled to grant of final registration under Clause (iii) to First Proviso to section 80G(5) of the Act even after grant of provisional approval, which would make the relevant provisions of section 80G(5) otiose and defeat the object and purpose of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
