Om Sai Charitable Trust, Surat V. CIT(Exemption), Ahmedabad Current Jurisdiction Exemption Ward Surat, Surat

ITA 201/SRT/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7584 (ITAT-SURAT)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-04-2024
• Assessment Year: misc
• Appeal Filed On: 20-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Set aside
• Section: 12A; 10(23C)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER ITA No. 201/Srt/2024 (Assessment Year –N/A) (Physical hearing) Om Sai Charitable Trust, B-99, Amra Kunj Society, Kumbharia BO Puna, Surat, Gujarat-395010. PAN No. AAATO 8279 P Vs. C.I.T.(Exemptions), Ahmedabad, Current jurisdiction, Exemption Ward, Surat. Appellant/ Assessee Respondent/ Revenue Assessee represented by Shri Rasesh Shah, C.A. Department represented by Shri Ravi Kant Gupta, CIT-DR Appeal instituted on 21/02/2024 Date of hearing 24/04/2024 Date of pronouncement 29/04/2024 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of the learned Commissioner of Income Tax (Exemptions), Ahmedabad [in short, the ld. CIT(E)] dated 18/12/2023. Following grounds of appeal have been raised by the assessee. “1. On the facts and in circumstances of the case as well as law, the ld. CIT(E) has erred in rejecting assessee’s application u/s 80G(5) filed on 07/06/2023 on the ground that assessee did not file the application before 30/09/2022 when the assessee has filed the application in time as per the extension granted till 30/09/2023 as per circular No. 6/2023 dated 24/05/2023. 2. Even otherwise, the ld. CIT(E) has erred in rejecting application u/s 80G(5) filed on 07/06/2023 when the assessee was under honest belief that extension was granted till 30/09/2023 as per circular No. 6/2023 dated 24/05/2023. ITA No. 201/Srt/2024 Om Sai Charitable Trust Vs CIT(E) 2 3. It is therefore prayed that the CIT(E) should be directed passed u/s 80G(5) of the I.T. Act, 1961 may please be set aside to the file of CIT(E) with appropriate direction. 4. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.” 2. Rival submissions of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that the application of assessee filed in Form 10AB for approval under Section 80G(5) of the Income Tax Act, 1961 (in short, the Act), filed on 07/06/2023 was rejected by the ld. CIT(E) by treating the same as non- maintainable without going on the merits of the case and also withdraw/cancelled the provisional approval granted to assessee. The ld. AR of the assesse further submits that the application of assessee was rejected by the ld. CIT(E) by taking view that the assessee was required to file such application on or before 30/09/2022. The ld. AR of the assessee submits that the assessee was under impression that time limit for filing application for approval under Section 80G(5) of the Act has been extended vide Central Board of Direct Taxes (CBDT) Circular No. 6/2023 alongwith the extension of time period for registration under Section 12A and 10(23C) of the Act. The ld. AR of the assessee submits that the Tribunal has power to condone the delay in filing Form 10AB as per the judgement of Hon'ble Delhi High Court in DCIT (Exemption) Vs Vishwa Jagriti Mission 30 taxmann.com 41, which was followed by the Surat Bench in Vananchal Kelavani Trust Vs CIT(E) 159 taxmann.com 634. ITA No. 201/Srt/2024 Om Sai Charitable Trust Vs CIT(E) 3 3. On the other hand, the learned Commissioner of Income Tax-Departmental Representative (ld. CIT-DR) for the revenue supported the order of ld. CIT(E). 4. We have considered the submissions of both the parties and perused the record carefully. We have also deliberated on the case laws relied by the ld. AR of the assessee. We find that after hearing the submission in the present appeal, the CBDT in its Circular No. 7/2024 dated 25/04/2024 has extended the time limit for filing Form 10AB for approval under Section 80G(5) till 30/06/2024. It is further clarified in the aforesaid Circular that where any trust, institution or fund has already made an application in Form 10AB under the said provisions on or before issuance of this circular, where the Principal Commissioner or Commissioner has not passed an order before issuance of this circular, the pending application in Form 10AB may be treated as valid application or where the Principal Commissioner or Commissioner has passed an order rejecting such application on or before issuance of this circular, solely on account of fact that application was furnished after due date or that application has been furnished under wrong code, it may furnish a fresh application in form 10AB within extended period i.e. up to 30/06/2024. Considering the benefit allowed by the CBDT in its Circular No. 7/2024, we deem it appropriate to restore the present appeal to the file of ld. CIT(E) to reconsider the application of assessee in view of the contents of aforesaid circular and pass order afresh ITA No. 201/Srt/2024 Om Sai Charitable Trust Vs CIT(E) 4 on considering the merit of the case. Needless to direct that before passing the order, the ld. CIT(E) shall grant fair and reasonable opportunity of hearing to the assessee. The assessee is also directed to be more vigilant in future and not to cause further delay and seek adjournment without any valid reason and to furnish all the details and his submissions and evidences on various grounds of appeal raised by it, as soon as possible, if so desired without any further delay. In the result, the grounds of appeal raised by the assessee are allowed for statistical purposes. 5. In the result, this appeal of assessee is allowed for statistical purposes only. Order announced in open court on 29 th April, 2024. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 29/04/2024 *Ranjan Copy to: 1. Assessee 2. Revenue 3. CIT 4. DR By order 5. Guard File Sr. Private Secretary, ITAT, Surat