Mahesh Charitable Trust, Surat V. CIT (Exemption), Ahmedabad

ITA 252/SRT/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7251 (ITAT-SURAT)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-05-2024
• Assessment Year: misc
• Appeal Filed On: 05-03-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AASHISH POPHARE
• Assessee Lawyers: SURESH K. KABRA
• Keywords: Charitable institution; Opportunity of being heard

Judgement Text

आयकर अपीलीय अिधकरण, सुरत Ɋायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आ.अ.सं./ITA No.252/SRT/2024 (Hearing in Physical Court) Mahesh Charitable Trust 103, Citypark, Apartment, Jamna Nagar, Bhatar, Surat-395001 [PAN No. AAHTM 6479 L] Vs Commissioner of Income Tax(Exemption) Ahmedabad Room # 609, Floor-6, Aaykar Bhawan (Vejalpur), Nr. Sachin Tower, 100 Foot Road, Anandnagar-Prahladnagar Road, Ahmedabad-380015 अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Suresh K. Kabra, CA राजˢ की ओर से /Revenue by Shri Aashish Pophare, CIT-DR अपील पंजीकरण/Appeals instituted on 06.03.2024 सुनवाई की तारीख/Date of hearing 08.05.2024 उद्घोषणा की तारीख/Date of pronouncement 13.05.2024 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of Ld. Commissioner of Income-Tax (Exemption, Ahmedabad [for short to as “Ld. CIT(E)”] on 21.02.2024 passed under section 80G(5) of Income Tax Act, 1961 (‘the Act’) in rejecting application for approval of funds. 2. Rival submission of both the parties have been heard and record perused. The Ld. Authorized Representative (Ld.AR) for the assessee submits that assessee-trust registered under section 12A/12AB. The assessee is also registered with Charity commissioner. The assessee was set up by way of Trust deed dated 28/09/2021. The assessee started its activities from 16.12.2022. The assessee applied for provisional approval under section 80G(5) and the same was allowed to ITA No.252/SRT/2024 Mahesh Charitable Trust 2 the assessee vide order dated 04.01.2022 Form No.10AC and is valid upto assessment year 2024-25. The assessee applied for regular approval on 30.09.2023 which is rejected by Ld.CIT(E) on 21.02.2024 by taking view that time limit for filing application for regular approval was extended only upto 30.09.2022 by Circular No.8/2022 dated 31.03.2022 of Central Board of Direct Taxes (CBDT in short). The Ld. AR for the assessee submits that CBDT has recently issues Circular No.7/2024 dated 25.04.2024 for extending time limit for filing application for approval of fund under section 80G(5) till 30 th June 2024. Thus, the assessee may be allowed similar relaxation time limit as extended by CBDT in its latest Circular No.7/2024 dated 25.04.2024. The Ld. AR for the assessee further submits that on the basis of latest CBDT’s Circular No.7/2024 dated 25.04.2024 this Bench has allowed similar relaxation of time period in Shri Surat Samast Sorathiya Rohindasvanshi Gnati Panch vs. CIT(E) in ITA No.159/SRT/2024 dated 25.04.2024 and restored the said appeal to the file of Ld.CIT(E) for considering afresh. The Ld. AR for the assessee submits that Ld.CIT(E) has not considered the application on merit. Therefore, by allowing extended time period, the Ld.CIT(E) may be directed to consider the application of assessee afresh. 3. On the other hand, Ld.CIT-DR for the Revenue supported the order of Ld.CIT(E). The Ld.CIT-DR for the Revenue submits that as per Circular No.7/2024 dated 25.04.2024, the assessee is at liberty to file application afresh in terms of above. ITA No.252/SRT/2024 Mahesh Charitable Trust 3 4. We have considered the rival submission of both the parties and perused record carefully. We find that assessee for the first time assessee applied for provisional approval which was allowed vide order dated 04.01.2024. We further find that the assessee on obtaining approval again filing regular approval under section 80G(5) vide application dated 27.09.2023, which was rejected by Ld.CIT(E) on 21.02.2024 by taking view that application is not filed within extended period as prescribed in Circular No.8/2022 dated 31.03.2022, the assessee was required to file application on or before 30.09.2022, Thus, the application is time barred. Considering the relaxation granted by CBDT in recent Circular No.7/2024 dated 25.04.2024 extending time period upto 30.06.2024 for seeking approval under section 80G(5). Thus, the assessee is also allowed such relaxation period upto 30.06.2024 in terms of CBDT Circular No.7/2024 dated 25.04.2024. Considering the above factual position, grounds of appeal raised by assessee-trust is restored back to the file of Ld.CIT(E) to reconsider the application of assessee on merit and pass by a speaking order in accordance with law. Needless to direct that before passing the order afresh, the Ld.CIT(E) shall grant reasonable opportunity of being heard to the assessee. The assessee is also given liberty to file written submission and evidence as and when called for. The ld CIT(E) is directed to consider all such evidences, if so filed by the assessee. The assessee is also further directed to be more vigilant and to make compliance in time as and when called for by ld. CIT(E). In the result, ITA No.252/SRT/2024 Mahesh Charitable Trust 4 the grounds of appeal raised by the assessee are allowed for statistical purpose. 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 13/05/2024. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) [लेखा सद˟/ACCOUNTANT MEMBER] [Ɋाियक सद˟ JUDICIAL MEMBER] Surat, Dated: 13/05/2024 Dkp. Out Sourcing Sr.P.S Copy to: 1. Appellant- 2. Respondent- 3. CIT(A)- 4. CIT 5. DR 6. Guard File True copy/ By order // True Copy // Sr. Private Secretary /Private Secretary /Assistant Registrar, ITAT, Surat