SHRI SURTI MODH VANIK JAGRUTI MANDAL, MUMBAI V. CIT (EXEMPTIONS), MUMBAI

ITA 1543/MUM/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 5558 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: G
• Next Hearing Date: 25-06-2024
• Assessment Year: misc
• Appeal Filed On: 31-03-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 12; 80G; 12A; 201; 119

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM And SHRI RAHUL CHUADHARY , JM ITA No. 1542 & 1543 /Mum/2024 (Assessment Year: 2023-24) Shri Surti Modhvanik Jagruti Mandal B 201 Mota Na gar Sir M V Road Andheri ( E ) Mum bai 99 Vs. The Commissioner of Income tax ( exemption) 601, 6 th Floor, Cumballa Hill MTNL Building Pedder Road Mumbai -26 (Appellant) (Respondent) PAN AACTS9206J Assessee by : Shri Ashok Mehta CA Revenue by : Shri DR Kishor Dhule CIT DR Date of hearing: 26-06-2024 Date of pronouncement : 29 th July 2024 O R D E R PER PRASHANT MAHARISHI, AM: 1) These two appeals filed by the assessee charitable trust for assessment year 2023 – 24 against the order passed by the Commissioner Of Income Tax (Exemptions) , Mumbai (the learned CIT – E) wherein per order dated 20/3/2024 the application of the assessee for registration under section 12 AB of the act in form number 10 AB filed on 31/3/2022 was rejected and consequently by another order of the same date the application for approval of registration under section 80 G was also cancelled for the reason that application for regularization of registration under section 12 A is already rejected. 2) Therefore, the assessee trust is aggrieved and has preferred the above two appeals, first against the rejection of regularization of registration and second against rejection of application for registration under section 80 G (5) of the act. 3) The fact shows that assessee trust originally applied for regularization of registration under section 12 AB of the income tax act by filing form number 10 AB on 31/3/2022 which was rejected by the learned CIT exemption by order dated 27/9/2022 stating that the trust deed contains a provision where the purposes of the trust are other than charitable. The assessee preferred an appeal before the coordinate bench wherein the order of the learned CIT exemption was set aside, and the matter was restored back to the file of the CIT – A as per order dated 27/7/2023. 4) The coordinate bench held that the assessee trust has been enjoying registration under section 12 A of the act in the year 2001 onwards. As the application of the assessee was rejected, the ITAT restored the application of the assessee for registration under section 12 AB as well as under section 80 G of the act back to the file of the learned CIT – A with direction to process the same in accordance with law after hearing the assessee. The assessee was also directed to file written submission relevant documents etc. to support its application and thereafter the CIT – exemptions was to pass orders after hearing the assessee. 5) Thus, the application of the assessee for registration as well as recognition under section 80 G of the act was restored to the file of the learned CIT – A. 6) The learned CIT E held that according to the provisions of section 12 A (1) (ac) (iii) the assessee trust should have applied for regularization of the registration prior to 6 months before the expiry of the provisional registration or within six months from the date of commencement of its activities, whichever is earlier. 7) In the present case the learned CIT – E found that assessee has been granted provisional registration under section 12 A inform number 10 AC on 4/4/2022. The assessee has filed an application in form number 10 AB on 31/3/2022. Thus, the assessee has filed an application for regularization of the registration before the issuance of the provisional registration. Therefore, if there is no provisional registration granted to the assessee, it could not have been regularized.As the assessee was not granted registration under section 12 AB, naturally 80 G registration/recognition could not have been granted. 8) Now we find that the central board of direct taxes has come with a circular as under :- CIRCULAR NO. 7/2024 [F.NO. 173/25/2024-ITA-I], DATED 25-4-2024 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 31-8-2021 by Circular No. 12/2021, dated 25-6-2021, to 31-3-2022 by Circular No. 16/2021, dated 29-8-2021, to 25-11-2022 by Circular No. 22/2022, dated 1-11-2022 and further to 30-9-2023 by Circular No. 6/2023, dated 24-5-2023, and extended the due date for filing Form No. 10AB to 30-9- 2022 by Circular No. 8/2022, dated 31-3-2022 and further to 30-9-2023 by Circular No. 6/2023, dated 24-5-2023. 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., 30-9-2023. 3. On consideration of the matter, with a view to avoid and mitigate genuine hardship in such cases, the Board, in exercise of the powers conferred under section 119 of the Act, hereby extends the due date of making an application/intimation electronically in - (i) Form No. 10A, in case of an application under clause (i) of the first proviso to clause (23C) of section 10 or under sub- clause (i) of clause (ac) of sub-section (1) of section 12A or under clause (i) of the first proviso to sub-section (5) of section 80G or in case of an intimation under fifth proviso of sub-section (1) of section 35 of the Act, till 30-6-2024; (ii) Form No. 10AB, in case of an application under clause (iii) of the first proviso to clause (23C) of section 10 or under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A or under clause (iii) of the first proviso to sub-section (5) of section 80G of the Act, till 30-6-2024. 4. It may be also noted that extension of due date as mentioned in paragraph 3(ii) shall also apply in case of all pending applications under clause (iii) of the first proviso to clause (23C) of section 10 or sub-clause (iii) of clause (ac) of sub-section (1) of section 12A or under clause (iii) of the first proviso to sub- section (5) of section 80G of the Act, as the case may be. Hence, in cases where any trust, institution or fund has already made an application in Form No. 10AB under the said provisions on or before the issuance of this Circular, and where the Principal Commissioner or Commissioner has not passed an order before the issuance of this Circular, the pending application in Form No. 10AB may be treated as a valid application. 4.1 Further, in cases where any trust, institution or fund has already made an application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish a fresh application in Form No. 10AB within the extended time provided in paragraph 3(ii) i.e. 30-6-2024. 5. It is also clarified that if any existing trust institution or fund who had failed to file Form No. 10A for AY 2022-23 within the due date as extended by the CBDT Circular No. 6/2023, dated 24-5-2023 and subsequently, applied for provisional registration as a new trust, institution or fund and has received Form No. 10AC, it can avail the option to surrender the said Form No. 10AC and apply for registration for AY 2022-23 as an existing trust, institution or fund in Form No. 10A within the extended time provided in paragraph 3(i) i.e. 30-6-2024. 9) By the circular, CBDT has extended the due date for filing of form number 10 A/10 AB under the income tax act 1961 dated 25 April 2024 wherein it has been provided in paragraph number 3 that with a view to avoid and mitigate genuine hardship, the central board of direct taxes under the provisions of section 119 of the income tax act extended the due date for making an application electronically in form number 10 AB in case of application under section 12 A under section 80 G (5) of the act to 30 th of June 2024. The circular also applied to all the pending applications. Further in paragraph number 4.1 it is stated that if such application is not filed in time, the assessee may furnish the fresh application within the extended time provided of 30/6/2024. It was stated that assessee has availed this benefit. 10) In view of the above circular, we direct the learned CIT – exemption to grant benefit of the above circular to the assessee trust and decide the application of the assessee for regularization of registration under section 12 AB and for grant of recognition under section 80 G (5) of the income tax act afresh. 11) In the result, in view of the above circular, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 29 th July 2024 Sd/- Sd/- (RAHUL CHUADHARY ) (PRASHANT MAHARISHI) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Mumbai, Dated:29.07 .2024 Sudip Sarkar, Sr.PS/Dragon Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai