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2025 (6) TMI 1057

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....7.2024 for registration of the trust under clause (iii) of first proviso to sub-section (5) of section 80G of the Act. With a view to verify the genuineness of the activities of the assessee and fulfillment of conditions laid down in clause (i) to (v) of section 80G of the Act, a notice was issued through ITBA portal on 03.09.2024 requesting the assessee to upload certain information / clarification. Although the notice was duly served on the assessee through e-mail portal, however, the assessee did not comply to the said notice for which another notice was issued to the assessee on 29.10.2024 asking the assessee to comply by 08.11.2024. The assessee submitted certain details in response to the said notice. Since the Ld. CIT(E) noticed cert....

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....r under section 12AB or 10(23AA) or 10(23C) of the Income Tax Act, 1961 or the institution / fund shall be a Regimental Fund or Non-Public Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependents. 3. In view of the above and observing certain other irregularities, the Ld. CIT(E) rejected the application for grant of approval u/s 80G of the Act by recording as under: 7.1 In the instant case it is noticed that the assessee is neither regularly registered u/s 12AB read with section 12A(1)(ac)(i) /12A(1)(ac)(iii) nor having regular approval under section 10(23C) read with clause (i)/(iii) of first proviso to the said section and the case is not covered under the excl....

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....ionally approved under section 80G(5)(vi) of the Act, the application for regular approval under section 80G(5)(vi) is required to be filed, at least six months prior to expiry of period of the provisional approval or within six months from the date of commencement of activities. Since, the period of provisional approval was due to expire on 31/03/2024, the present application was required to be filed before 30/09/2023. The extended due date for filing of such application was 30/06/2024 as per CBDT, Circular No.7/2024, dated 25/04/2024. However, the present application filed by the trust is on 20/09/2023 i.e. after the expiry of period allowed under clause (iii) of first proviso to section 80G(5) of the Act. Thus, it is seen that you have n....

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....ome Tax, Exemption, Pune (hereinafter called as CIT Exemption) erred in rejecting the approval sought for under section 80G(5) of the I T Act, 1961 to the applicant trust vide order dated 14/01/2025 and so also cancelling the provisional approval granted on 26/03/2022 under clause (iv) of first proviso to section 80G(5) of the Act for the AYs. 2025-26 to 2027-28 observing and holding that in preceding AY 2024-25 the condition laid down in section 80G(5)(i) of the Act had not been fulfilled ignoring and without appreciating the facts that for the AYs. 2025-26 to 2027-28 the provisional registration u/s 12A(1)(ac) (vi)- Item 'A' of the Act had been granted by the said authority on 01/08/2024. The order passed rejecting/cancelling such....

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....shed and the CIT(E) be directed to grant such approval. 4. The appellant craves leave to add, alter, delete, amend, withdraw, modify, change or substitute any ground or grounds of appeal or to add any new ground or grounds of appeal during or before the hearing of the appeal. 5. The Ld. Counsel for the assessee at the outset submitted that the assessee trust has been granted provisional registration u/s 12A(1)(ac)(vi) of the Act on 01.08.2024. Therefore, the Ld. CIT(E) was not justified in denying the approval u/s 80G of the Act on account of non-availability of registration under section 12A of the Act. He submitted that the application for approval under the said section was filed on 27.07.2024 after the prescribed date 30.09.2023 as p....

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....e Act and the application for grant of approval u/s 80G was filed belatedly. It is the submission of the Ld. Counsel for the assessee that the assessee trust is having valid registration u/s 12A and full details were furnished before the Ld. CIT(E) and there are certain factual inaccuracies in the order of the Ld. CIT(E). We find in paras 7 and 7.1 of the order, the Ld. CIT(E) has observed that the assessee trust does not have valid registration u/s 12A of the Act whereas the same is factually incorrect as the assessee trust is having valid registration u/s 12A of the Act. Similarly, at para 8, the Ld. CIT(E) has observed that the assessee trust filed the present application for grant of approval u/s 80G of the Act on 20.09.2023 whereas the....