SPARSH SAMAJIK SEWA SAMITI NARNAUL, Narnaul V. CIT Exemptions, Chandigarh

ITA 3280/DEL/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6905 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 15-05-2024
• Assessment Year: 2023-2024
• Appeal Filed On: 19-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHARM VEER SINGH
• Section: 6; 11A; 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.3280/DEL/2023 Assessment Year 2023-24 Sparsh Samajik Sewa Samiti Narnaul HDFC Bank Ke Gali Opp. S. P. Residence Mohindergarh Road Narnaul, Haryana. Vs. Commissioner of Income Tax (Exemptions) Chandigarh TAN/PAN: AAJAS8706R (Appellant) (Respondent) Appellant by: Shri Parikshit Aggarwal, Chartered Accountant Respondent by: Shri Dharm Veer Singh, CIT-DR Date of hearing: 16 05 2024 Date of pronouncement: 30 05 2024 O R D E R PER PRADIP KUMAR KEDIA-AM: T he c a pt i o ne d a p p e al h a s be en fi l e d a t th e i n s t a n c e o f t he a ss es se e a g a i n st t he o r de r o f t h e Co mm i s si on e r o f Inc o m e T a x (E x e m pt io n) , Ch a n di g a r h da t e d 2 1 . 0 9. 2 02 3 pa ss ed u n der S e c t i o n 80 G o f t h e In c o me T ax A ct , 19 61 ( t h e A c t ). 2. A s p e r t he gr o u n d s o f a p p e a l, t he a sse ss e e h a s cha l l e n ge d de n i a l o f a p p r ov al o f th e T r u st u nd er S ec t i on 8 0G of th e A c t . 3. W h e n t h e ma t te r w a s c al l e d for h e ar i n g, t h e l d . c o u n se l f or t h e a ss es se e su b mi t t e d t ha t t h e a ss e sse e mo ve d a n a p p l ic a t i o n e le c t r o n ic a l l y fo r r eg i st r a t i on o f th e Tr u st u n de r S ec t i o n 8 0G (5 ) o f t he A ct i n p re sc r i b e d F o r m 1 0A B u nd e r Ru l e 11A A o f t he I n c o me Ta x R ul e s, 19 6 2 I.T.A. No.3280/Del/2023 2 3. 1 T he I d. c ou ns e l su b m i t t e d t h a t th e a p pl i ca t i o n f o r pr o vi s i on al re g i s t r a t i o n w a s a pp r ov ed un d e r ne w r eg i m e on 2 9. 0 3. 20 2 3. T h e Tr u st a c t i vi t ie s w e re how e ve r a l re a d y c o m me n c e d l o ng b a c k o n 31 . 1 0. 2 0 1 2 . I n t e r ms o f t h e n ew r e g i me u nd e r c l au se ( ii i ) o f fi r st pr o vi so t o s ub S e c t io n (5 ) o f S e c t i on 80G o f t h e I nc o me T ax A c t , t he a p p l ic a t i o n fo r re g u l a r / fi n a l a p pr o va l i s re qu i r e d t o be m a de (i ) a t l e a s t si x m on t h s pr i o r t o e x p i ry o f t he p e r i o d of pr o vi si on al a pp r o va l o r i i ) w i t hi n s i x m o n t hs o f c o m me nc e me nt of a ct i vi t i e s; w hi c h e v e r i s e ar li e r. Th u s, as pe r t he c on d i ti on s st i pu l a t e d b y a fo r e sa i d c l a u s e ( i t i ) t o p ro vi so, t h e ap p l i ca t i o n fo r f i n al a pp r o v a l ou g ht t o ha ve b e e n m a de w i t h i n s i x m o nt h s o f t he c om m e n ce m en t o f a ct i v i t ie s w h ic h i n t he i n st a nt c a s e i s 31 . 1 0. 2 0 1 2 . O n t hi s da te , t he ne w r e g i m e w a s n o t i n pl a c e a t a l l. T h e c o mp l i a nc e o f c on di t i o n o f a pp l i ca t i on fo r a p p ro va l w it h i n 6 mo nt hs o f c o m me nce me nt o f a ct i v i t ie s i s be yo nd c o m p re h e n s io n an d a n i mp o ss i b il i t y t o p e r f o r m. Th e a p p l ic a t i o n w as d ut i ful l y m a d e b y t h e A s s es se e In st i t u t i on / Tr u st fo r fi n a l ap pr ova l on 29 . 0 3. 2 0 23 , i . e . , w it hin s i x m o n th s o f t h e pr o vi si on al re gi st r a t i on r ec e iv e d o n 2 1. 01 . 2 02 3. A dv er t i n g fu r t h e r, t he I d. c o un sel r e fe r r e d t o a n d re l i e d u p on C i rc ul ar N o. 7 o f 2 02 4 da t ed 2 5. 04 . 2 02 4 t o s ub mi t t h a t t he ti m e l i m i t fo r a p p l yi ng fi n al re g i s t r a t i o n h as b ee n e x t e n d ed a nd t h e a s se sse e h a s fi l e d t he a pp l i ca t i on f or f in al re gi st ra t i o n w i t hi n e xt e n de d t i me li m i t. A s fu r t h e r c o n t e n d e d , th e a na l o go us si t ua ti o n i n t he le g i s l a ti ve fr a m e w o rk h a s b e e n d ea l t w i t h b y th e C o -o r d i n a t e B en c he s i n fa vo u r o f t h e a s se ss e e i n t he c a se s v i z . In de p t h V i si o n F o un dat i o n v s. CI T ( E ), I T A N o. 46 0/ CH D / 20 23 o rd e r d at e d 0 9. 0 5 . 2 0 2 4; Ind ia n R e d Cr o s s So c ie t y v s. CI T ( E ), IT A N o . 28 8/ CH D / 2 02 4 or de r d at e d 01 . 0 5. 2 0 2 4 a n d V ai d ya Ma ng a t R ai F o u n da t i o n v s. C IT( E ) , IT A No. 26 6 8/ D e l/ 2 0 23 o rd e r da te d 1 8. 0 4 . 20 2 4. I.T.A. No.3280/Del/2023 3 3. 2 T he I d . c o u n se l t h u s ur g e d for se t t i n g a si de o f t h e r e j e c t i o n or d e r p as s e d by t h e C I T ( E ) on t e ch ni ca l g ro u n ds a n d r e sto ra t i o n o f t he m at t e r b a c k t o t he f i l e o f t h e CIT E ) f or a dj ud ic a t i n g t he a pp l i ca t i on i n t h e l i g h t o f c or re c t p os i t i o n o f l a w e n un ci a t ed b y t h e Co - or di na t e B en ch e s. 4. W e h a v e w ei g he d t he r i va l s ub mi s si o n s an d p e r u sed t he ma t e r i a l o n r ec or d . T he qu es t i o n t h a t a r i se s fo r cons i d e ra t i o n i s w he t h e r t h e C I T ( E) i s j u sti f i e d i n d en yi n g t he a p p ro va l fo r re g u l a r / p e r ma n e n t r eg i st r a t i o n o f th e a ss e s se e In sti t ut i o n/ F u n d ho l d i n g t h a t t he a p p l i c a t i o n fi l e d b y t h e a s se sse e In sti t u t i on / F u n d i n pr e sc ri b e d F or m 1 0 A B f or t h e p u rp os e s o f ap pr o v a l un de r s. 8 0 G i s t i m e ba rre d . 5. C la us e (i i i ) o f F i r s t P r o v i s o t o s ub -s e c t i o n ( 5 ) o f 8 0G o f t he A ct pl a c e s e m ba rg o o f t i me li m i t to m a k e a p pl i c a t i on be fo re t he c o mp e te nt a ut ho r i t y f or g ra nt o f a pp r ov a l u n d e r s. 8 0 G o f t h e A c t . Th e a fo r e s a id c l a u s e s t i p u l a t e s t h a t w h e re th e a s sess ee In s ti t ut i o n o r F un d is p r o v i si on a l l y a p p r ov ed , t he a p pl i ca t i on f o r fi n al r e gi st ra t i o n un d e r F or m 1 0A B sh a l l b e m a d e b y s u c h a s s es se e , at l e a st si x mo nt hs p ri or t o e x p i r y o f t h e pe ri o d o f t h e p ro vi sio na l a pp ro v a l o r w it h i n si x m on t h s o f c o mm e n c e m e n t o f i t s a c t i vi t i e s, w h i ch i s e ar li e r. 6. T he CI T (E ) ha s d en i e d fi n a l a p p r o v a l un de r s. 8 0G t o t he A sse s se e o n th e g r ou n d th at t h e a pp l i c at i o n fo r ap pr o v a l h a s n ot be e n ma d e w i t hi n si x mo nt h s o f c o m m en c e m en t o f i t s ac t i v i t i e s. 7. I t i s t h e ca se o f t h e a s ses se e t h a t t h e co mm e n c em e nt o f a ct i v i t ie s h a v e ha p p e n e d w a y b a c k i n O c to b e r 2 01 2 , w h en sc h e me o f I.T.A. No.3280/Del/2023 4 pr o vi si on al an d f i na l a ppr ov a l w a s not e n ac t e d . T h e a sse ss e e ha s ob t a i ne d p r ov i s io n a l ap pr ov a l i n Ja n . 2 023 a n d ap pli e d fo r fi n al a pp r o va l i n M a r c h 20 2 3. T h e st r i c t c o m p l ia nc e o f t ime l i mi t i n t he fa c ts o f t h e c a s e i s an ut t e r i m po s s ib i l i t y s i n c e th e ac t i v i ti e s o f t h e a ss es se e c o m m e n c e d mu c h be fo re s u ch l a w c a m e i n t o for ce . T h e a ss es se e t h u s se e k s di re c ti o n s f or a p pr o v a l ba sed on ha r m o n i o u s i nt er pr et a t i o n o f su c h c o nd i t i o n s. 8. A s c on t e st e d o n be h a l f o f t h e a ss e s see , t h e l i t er al i nt er pr et a t i o n un de r c l a u se ( i l i) t o p r ov is o t o s u b s e c t i on (5 ) t o S ec t i on 8 0 G w ou ld l e ad t o a b su r d a n d a no ma l ou s r e sult i n t he f a c t s o f s u c h c a se . T he a sse ss e e ha s in vo ke d ' do ct r i n e o f i m p o ss i b i l i t y ' i n t he i n st a n t c a se t o m ee t t h e l i m i t a t i o n a ss i g ne d for fi na l a pp ro va l i n c la us e ( i li ) o f F i s t P ro vi so t o S . 8 0G (5 ). T he d oc tr i n e o f l e gi t i m a te e xp e c ta t i on s i n t h e c i r c u m s t a n c es w a s a l s o i n vo ke d. We a re i n c l i ne d t o ag re e w i t ho ut a n y di ff i c u lt y. I t i s os t e ns i b l e th at t h e l i m it a t io n pe r i o d p ro v i de d b y t he st a tu t e st oo d e xp i r e d a s s oon a s t h e n e w la w w as e n a c t e d. Th e c o m pl i a n ce o f st i p ul at i on s t ow a r d s t i me fra m e fo r a pp l i ca t i on i s o u s te d a t t h e t h r e sh ol d. I t i s t r i t e t ha t t h e l a w c an no t be r e a d i n a m a n ne r t o c a st i m p o s si b le bu r d e n on t he s u b j e ct a ss es se e . It i s a l s o t r i t e t ha t an a ss es s ee c a n no t be a s ke d t o d o so m e t h i n g w h ic h is i m p o ss i b l e fo r h i m t o c a rr y o u t . In t he l i gh t o f suc h sa l ut ar y p r i nc ip l es, r e s o rt i s r e q ui r e d t o t a ke n t o h a r m on io us i nt er pr et a t i o n o f s uc h st i pu l a ti o n s t o m ak e t h e st at u t o r y e n ac t me nt w or ka bl e. 9. I n th e ba c k d r op o f pe c u l i a r fa c t s, w e a re o f t he f i r m v ie w t h at t he a p p l i c a ti on m a de f or t he fi na l r e g is t r a t i on w i thi n 6 mo nt hs p r i o r t o ex pi ry o f p e r i o d o f p ro vi si on a l r e gi st ra ti o n me et s s u bst a n t i al c o mp l ia nc e n o t w i t h s ta nd i n g no n c o m pl i a n c e o f mo vi ng a n I.T.A. No.3280/Del/2023 5 a pp l i ca t i on fo r a p p ro va l w i t h i n 6 mo nt hs o f c o m me nce me nt o f a ct i v i t ie s a s t h r u st up o n b y t h e se c o nd l i mb o f c laus e (i i i ) o f t he pr o vi so. 10 . C o ns e q u e n t l y , w e s e t a si de t h e i m pu g ne d or d e r of t h e C IT ( E ) de n y i n g a pp ro v a l o n t he g r o u n ds o f e xp i ry o f l i mi t at i o n a n d d i re ct t he C I T ( E ) to r e - e x a mi ne th e a pp l i c a t i on f or a p pr oval un d er S e c t io n 80 G o f t he A c t a fre sh i n a c co rd an c e w i th la w di sre ga r d i n g t he fe t te r s o f ap pl i c a t i o n t o b e m ad e w i t h i n 6 mo n t hs of c o m me nc e me nt o f a c t i v i t i e s, for t h e pur po se s o f gr an t o f a p pr ov al . 11 . I n t he re su lt , t h e a pp e a l o f t h e a sse ss e e i s a ll ow e d fo r st a t i st ic a l pu r p os e s . Order pronounced in the open Court on 30/05/2024 Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /05/2024 Prabhat