CHAROTAR SEVA TRUST VASAD,ANAND V. THE CIT (EXEMPTION), AHMEDABAD

ITA 842/AHD/2024

AI Insights

The case involves the Charotar Seva Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected their application for approval under Section 80G(5)(iii) of the Income Tax Act, 1961. The rejection was based on the trust's failure to file the application in Form 10AB within the stipulated time frame following their provisional approval. The trust's activities commenced on March 19, 2021, and the provisional approval was granted on May 31, 2021. The application for final approval was filed late, leading to its initial rejection. However, after the filing of the appeal, the delay was condoned, and the approval was granted as per a CBDT Circular. Consequently, the trust decided to withdraw the appeal, which was not opposed by the Revenue.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474026 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 19-11-2024
• Assessment Year: misc
• Appeal Filed On: 25-04-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SAMIR TEKRIWAL
• Assessee Lawyers: CHETAN AGRAWAL
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 842/Ahd/2024 (Ǔनधा[रण वष[ / Assessment Year: NA) Charotar Seva Trust Vasad Patel Society, Vasad High School Road, Anand, Gujrat- 388306 बनाम/ Vs. Commissioner of Income Tax (Exemption), Ahmedabad. èथायी लेखा सं./जीआइआर सं./PAN/GIR No. : AACTC8193Q (Appellant) .. (Respondent) अपीलाथȸ ओर से /Appellant by : Shri Chetan Agrawal, AR Ĥ×यथȸ कȧ ओर से/Respondent by : Shri Samir Tekriwal, CIT-DR Date of Hearing 19/11/2024 Date of Pronouncement 21/11/2024 O R D E R PER SHRI NARENDRA PRASAD SINHA, AM: The present appeal is filed by the applicant trust against the order dated 27.02.2024 passed by the Commissioner of Income Tax (Exemption) Ahmedabad, (in short ‘the CIT(Exemption)’), rejecting the application for approval u/s. 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). ITA 842/Ahd/2024 [Charotar Seva Trust vs. CIT(E)] A.Y. NA - 2 – 2. The application for approval of the Trust under clause (iii) of first Proviso to Sub-Section (5) of Section 80G of the Income Tax Act, 1961 was filed by the assessee in Form No.10AB electronically. The ld. CIT(Exemption) observed that the assessee had got provisional approval u/s 80G(5) of the Act and, therefore, was required to file application in Form 10AB within the time period of at least six months prior to the expiry of the period of provisional approval or within six months of commencement of its activities, whichever was earlier. The CIT(Exemption) noticed that the assessee trust was incorporated on 23/12/2020 and provisional approval was issued to the trust on 31/05/2021. As the present application was filed belatedly by the assessee, the CIT (Exemption) issued notice on 23/11/2023 calling for an explanation of the assessee in this regard. In reply dated 08/12/2023 the assessee had submitted that the activities of the trust were started on 19/03/2021 but no explanation for the delay in filing the present application was given. The CIT(Exemption) has observed that the applicant trust was required to file the application in Form 10AB on or before 30/09/2022. As the present application for approval under Section 80G(5) of the Act was filed belatedly, the same was rejected by the ld. CIT(Exemption) as non-maintainable and the provisional approval granted earlier was also cancelled. 3. In the course of hearing Sri Chetan Agrawal, the ld. AR for the assessee informed that the assessee does not want to pursue this appeal. A letter in this respect was also filed informing that after filing of this appeal the assessee has been granted registration u/s 80G(5) of the Act as per CBDT Circular ITA 842/Ahd/2024 [Charotar Seva Trust vs. CIT(E)] A.Y. NA - 3 – condoning the delay in filing the relevant form. Therefore, the assessee has sought permission to withdraw this appeal. The Revenue does not have any objection to the withdrawal of the appeal by the assessee. 3. We have considered the submission of the assessee. The approval u/s. 80G(5)(iii) of the Act was denied for the reason that the application was not filed within the due date. Subsequently, the delay in filing the application was condoned and the approval was granted to the assessee. Therefore, the assessee has sought permission to withdraw the present appeal. 4. In view of above facts, the present appeal is dismissed as withdrawn. This Order pronounced on 21/11/2024 Sd/- Sd/- (T.R. SENTHIL KUMAR) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 21/11/2024 S. K. SINHA True Copy आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंͬधत आयकर आयुÈत / Concerned CIT 4. आयकर आयुÈत(अपील) / The CIT(A)- 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलȣय अͬधकरण, अहमदाबाद / ITAT, Ahmedabad "