GLOBAL ENVIRONMENT RESEARCH FOUNDATION,NADIA V. CIT (EXEMPTION), , KOLKATA

ITA 281/KOL/2025

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The case involves the Global Environment Research Foundation appealing against the decision of the CIT (Exemption), Kolkata, which rejected their application for approval under Section 80G(5)(iii) of the Income Tax Act, 1961. The rejection was primarily due to the application not being filed within the prescribed time limit and an incorrect clause being cited in the application form. The Tribunal found that the error in citing the clause was a curable defect and that the application should be considered under the correct clause (i) of the first proviso to section 80G(5). The Tribunal's decision was influenced by a similar case, Nitdaa Foundation v. Commissioner of Income tax (Exemption), which set a precedent for such situations.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 707100 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 10-02-2025
• Other Referred Cases: Nitdaa Foundation v. Commissioner of Income tax (Exemption) [2024] 167 taxmann.com 111 (Kolkata - Trib.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 12AA; 80G

Judgement Text

"आयकर अपीलीय अधिकरण कोलकाता 'बी' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘B’ BENCH, KOLKATA श्री जॉजज माथान, न्याधयक सदस्य एवं श्री राक ेश धमश्रा, लेखा सदस्य क े समक्ष Before SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. No.: 281/KOL/2025 Assessment Year: N.A. Global Environment Research Foundation Vs. CIT (Exemption), Kolkata (Appellant) (Respondent) PAN: AAAAG2964N Appearances: Assessee represented by : C.M. Roy, AR. Department represented by : P.N. Barnwal, CIT, DR. Date of concluding the hearing : 17-June-2025 Date of pronouncing the order : 09-July-2025 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Exemption)-Kolkata [hereinafter referred to as the ‘Ld. CIT (Exemption)’] passed in respect of registration u/s 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 27.01.2025. Page | 2 I.T.A. No.: 281/KOL/2025 Assessment Year: N.A. Global Environment Research Foundation. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: “1. That the Ld. CIT(Exemption) has erred in rejecting the Application for approval under Section 80G(5)(iii) of the Act. 2. That the learned That the Ld. CIT(Exemption) has erred in rejecting the Application for approval under Section 80G(5)(iii) of the Act without delving or discussing into merits of the case 3. That the learned That the Ld. CIT(Exemption) has erred in rejecting the Application for approval under Section 80G(5)(iii) of the Act on the ground that the application has not been file within the time limit prescribed therein. 4. For that the assessee craves leave to add, alter or withdraw any ground/s of appeal before or at the time of hearing.” 3. Brief facts of the case are that the assessee claims to carry on charitable activities and was granted provisional approval u/s 80G(5)(iv) of the Act in Form No. 10AC by CPC, Bengaluru vide order dated 23.09.2021 for a period from 23.09.2021 to A.Y. 2024-25. Subsequently, an application for approval of the trust u/s 80G(5)(iii) of the I.T. Act, 1961 was filed electronically. A notice was issued to the applicant/assessee on 27.12.2024 to furnish detailed note on the activities carried out by the assessee, as well as certain details/documents as mentioned therein, which was considered necessary in view of the mandatory provisions of the procedure for approval u/s 80G(5)(iii) of the Act, 1961. The submissions filed by the assessee were examined and it was found that the assessee had already commenced its activities in the financial year 2020-21 and the extended due date for filing the application in Form No. 10AB was 30/06/2024 as per the CBDT’s Circular No. 07/2024 dated 25/04/2024. It was also noted by the Ld. CIT(Exemption) that the assessee had incurred Page | 3 I.T.A. No.: 281/KOL/2025 Assessment Year: N.A. Global Environment Research Foundation. expenses on account of food for COVID-19 at Rs. 6,500/- and for Physical Handicapped programme for Rs. 25,000/- which established the fact that the activities of the trust had already commenced in the F.Y. 2000-21. Since the activities had already commenced, the application in Form No. 10AB was not filled filed within the time limit prescribed therein and, therefore, the same was liable to be rejected as not maintainable without going into the merits of the case and was therefore, rejected. Aggrieved with the order of the Ld. CIT(E), the assessee has filed the appeal before the Tribunal. 4. Rival contentions were heard and the submissions made have been examined. It is observed that the whole controversy arose because of incorrect mention of the relevant clause while filing the application. Since the assessee was an old entity, it ought to have filed the application under clause (i) of the proviso to section 80G(5). Similar issue arose in the case of Nitdaa Foundation v. Commissioner of Income tax (Exemption) [2024] 167 taxmann.com 111 (Kolkata - Trib.) wherein it has been held as under: “The assessee was an existing trust and had been granted approval under section 12AA as well as under section 80G earlier, but instead of applying under clause (i) of the first proviso to section 80G(5), it applied under clause (iii) as a new trust. If it had applied under clause (i), there was no need of issuing any provisional certificate and as per the second proviso to section 80G(5) the Principal Commissioner or Commissioner would have passed an order in writing granting it approval for a period of five years and there was no requirement for seeking any provisional approval which is required only for a new trust. [Para 11] Thus, the whole controversy arose due to incorrect mention of the clause under which the application was required to be filed, which was mentioned as clause (iii) of the first proviso to sub-section (5) of section 80G in column 6 of Form No. 10AB, whereas the same should have been mentioned as clause (i) of the first proviso to sub-section (5) of section 80G. Since Form No. 10AB was filed in time, the error on the part of the assessee for mentioning the wrong clause is deemed Page | 4 I.T.A. No.: 281/KOL/2025 Assessment Year: N.A. Global Environment Research Foundation. to be a curable defect and the application in Form No. 10AB is deemed to be filed under clause (i) of the first proviso to sub-section (5) of section 80G. The order of the Commissioner (Exemption) is hereby set aside. He is required to consider the application as filed under clause (i) of the first proviso to section 80G(5) and consider the same for grant of approval to the trust in accordance with law. [Para 12] 5. During the course of the appeal though the assessee sought adjournment, however, the Bench was of the view that the Ld. CIT(E) had denied the claim of exemption u/s 80G(5)(iii) of the Act on account of delay in filing the application within prescribed time limit by the assessee and on incorrect appreciation of the facts of the case. Hence, the order of the Ld. CIT (Exemption) is set aside and the matter is remanded to him for deciding the application afresh in view of the finding in the case of Nitdaa Foundation(supra). He is required to consider the application as filed under clause (i) of the first proviso to section 80G(5) and consider the same for grant of approval to the trust in accordance with law. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 09th July, 2025. Sd/- Sd/- [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 09.07.2025 Bidhan (P.S.) Page | 5 I.T.A. No.: 281/KOL/2025 Assessment Year: N.A. Global Environment Research Foundation. Copy of the order forwarded to: 1. Global Environment Research Foundation, B 7/27(S) Kalyani, Nadia, West Bengal, 741235. 2. CIT (Exemption), Kolkata. 3. CIT(A)- 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata "