Saanchi Health Care Foundation, Surat V. CIT(EXEMPTION), AHMEDABAD

ITA 437/SRT/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7248 (ITAT-SURAT)
• Duration Of Justice: 26 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: 16-04-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AASHISH POPHARE
• Keywords: Period of limitation; Condonation of delay
• Section: 80G

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.435/SRT/2024 (Hearing in Physical Court) Puranmal Kedarnath Gupta Foundation, Plot No. 649/K, 2 nd Floor, Halpati Colony, Umarwada, Surat-395010 [PAN No. AANCP 0877A] Vs CIT(Exemption), Aayakar Bhavan, Room No. 609, Floor No.6, Vejalpore, Near Sachin Tower, Anand Nagar, Prahalad Nagar Road, Ahmedabad-380015 अपीलाथŎ/Appellant ŮȑथŎ /Respondent आ.अ.सं./ITA No.436/SRT/2024 Shri Mehandipur Balaji Gauseva Foundation, T.P. No. 13, FP No.82, Gamtal Paiki, Mohan Dhwar Soc-2, Near Ashirwad, Bhatar, Government Medical College, S.O. Bhatar, Surat-395001 [PAN No. ABHC 8032 K ] Vs CIT(Exemption), Aayakar Bhavan, Room No. 609, Floor No.6, Vejalpore, Near Sachin Tower, Anand Nagar, Prahalad Nagar Road, Ahmedabad-380015 अपीलाथŎ/Appellant ŮȑथŎ /Respondent आ.अ.सं./ITA No.437/SRT/2024 Saanchi Health Care Foundation, L-20, Ashirwad Complex, Opp. Lalubhai Stadium, Bhatar Road, Surat-395001 [PAN No. ABICS 7721 C] Vs CIT(Exemption), Aayakar Bhavan, Room No. 609, Floor No.6, Vejalpore, Near Sachin Tower, Anand Nagar, Prahalad Nagar Road, Ahmedabad-380015 अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Rushi Parekh, CA राजˢ की ओर से /Revenue by Shri Aashish Pophare, CIT-DR अपील पंजीकरण/Appeals instituted on 23.04.2024 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 ITA No.(s) 435, 436 & 437/Srt/2024 2 PER PAWAN SINGH, JUDICIAL MEMBER: 1. This group of three appeals by different assesses are directed against the separate orders of Ld. Commissioner of Income-Tax (Exemption, Ahmedabad [for short to as “Ld. CIT(E)”] passed under section 80G(5) of Income Tax Act, 1961 (‘the Act’) in rejecting application for approval funds. The applications of assesses were dismissed vide order dated 24.11.2024, 29.11.2023 and 28.11.2023 respectively. In all three appeal, the certain facts are common, their applications were rejected on similar grounds of delay in filing application for approval of funds, thus, all the appeals were clubbed, heard together and are decided by common order to avoid the conflicting decisions. For appreciation of facts, the facts in ITA No. 453/Srt/2024 is tread as lead case. Though, the assessee has raised multiple grounds of appeal, however, in our considered view the substantial ground of appeal is “Whether the assessee- trust is entitled for approval under section 80G (5) or not”. Rest of the grounds of appeal are supportive or argumentative in nature. 2. Rival submission of both the parties have been heard and record perused. The Ld. Authorized Representative (Ld.AR) for the assessee fairly submits that impugned order was passed ld CIT(E) on 24.11.2023 and the appeal before Tribunal was filed on 27.04.2024, thus, there is delay of 84 days in filing appeal before the Tribunal. In fact, the assessee was not aware of passing order by ld CIT(E) as they have not received physical copy of order or soft copy of impugned order. The assessee trust was unaware of such order till April, 2024 ITA No.(s) 435, 436 & 437/Srt/2024 3 and came to know about the rejection of application, when the office bearer approached their Chartered Accountant (CA) for tax planning. From the date of knowledge of impugned order, the present appeal is filed appeal within prescribed period of limitation. There is no intentional or deliberate delay in filing appeal before the Tribunal, rather the assessee was prevented by sufficient cause as they have no knowledge or communication about the dismissal of application. The assessee has already filed an application for explaining such delay. The delay is not inordinate and the assessee is not going to be benefitted by filing appeal belatedly. The assessee has good case on merit and is likely to succeed if the matter is considered on merit. The ld AR for the assessee submits that there is similar delay of 79/80 days in filing remaining two appeals. The ld AR for the assessee prayed for condoning the delay in the interest of justice and to allow him to contest all the appeals on merit. 3. On merit, the ld. AR of the assessee submits that the assessee-trust was set up in 2022. The assessee apply for registration under section 12A/12AB as per amended provisions of Income–tax Act, applicable from 1 st April 2021. Initially the assessee was granted provisional registration under section 12A/12AB and finally granted regular registration under section 12A/12AB in Form-10AD, which is valid up to AY 2027-28. The assessee, thereafter applied for provisional approval under section 80G(5), which was allowed on 04.08.2022 and was valid up to AY 2025-26. However, the application of assessee for final ITA No.(s) 435, 436 & 437/Srt/2024 4 approval of fund under section 80G(5) was rejected by the ld. CIT(E) on 24.11.2023 by taking view by taking view as per Central Board of Direct Taxes (CBDT) Circular No. 8/2022, the assessee was required to file such application on or before 30/09/2022. The provisional approval was also cancelled. 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) in Form No.10A/AB till 30 th June 2024. Thus, the assessee may also be allowed similar relaxation of time limit extended by CBDT Circular No.7/2024. 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 in Shri Surat Samast Sorathiya Rohindasvanshi Gnati Panch Vs CIT(E) in ITA No.159/SRT/2024 dated 25.04.2024 allowed similar benefit of extended time period and restore 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 relief of extended time period as per CBDT Circular No. 7/2024, the Ld. CIT(E) may be directed to consider the application of assessee afresh. 4. On the other hand, Ld. CIT-DR for the Revenue for the revenue on the issue of condonation of delay would submit that he left the decision on the discretion of the Bench. On merit of the case, the ld. CIT-DR for the revenue supported the order of ld. CIT(E). The ld. CIT-DR for the revenue submits that the assessee was given sufficient and reasonable opportunity to the assessee for ITA No.(s) 435, 436 & 437/Srt/2024 5 making submission to prove the object and activities of the Trust. The assessee failed to respond such notices. Since the necessary conditions for allowing approval of is not examined by the ld. CIT(E), therefore, in case, if this Bench consider that the assessee deserve any opportunity, the matter may be restored to the file of ld. CIT(E) to consider the object of assessee-trust and its activities. The assessee may be directed to be more vigilant in future for making compliance in time. 5. We have considered the rival submission of both the parties and perused record carefully. Firstly, we are considering the plea of condonation of delay before us, the ld. AR of the assessee vehemently submitted that neither the physical copy of impugned order was received nor it was received and that they came to know about the dismissal of their application, when they contacted their CA for tax planning in April 2024. Considering the submissions of ld AR for the assessee and the facts explained in the application of condonation of delay filed by one of the trustee, and taking a lenient view that the assessee is not going to be benefitted by filing appeal belatedly, the delay in filing of appeal is condoned. Now adverting on merit of the case. 6. We find that at the time of filing application for registration in Form 10AB as per Rule 17A, on 02.05.2023. The assessee furnished required details. Thus, prima facie, the assessee has furnished certain details to substantiate their claim for approval under section 80G(5). However, the facts remained the same that the ld. CIT(E) rejected the application by taking view that the assessee ITA No.(s) 435, 436 & 437/Srt/2024 6 has not filed application on or before the extended time period of 30.09.2022 as allowed in CBDT Circular No. 8/2022. We find that CBDT in recent Circular No.7/2024 dated 25.04.2024 extended time period up to 30.06.2024 for seeking approval under section 80G(5). Thus, the assessee is also allowed similar relaxation of period in terms of CBDT Circular No.7/2024 dated 25.04.2024 and this appeal is restored back to the file of Ld. CIT(E) to reconsider the application of assessee on merit and pass 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 or to make submissions against cancellation of their provisional approval. The ld CIT(E) is directed to consider all such submissions and 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, the grounds of appeal raised by the assessee are allowed for statistical purpose. 7. In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose. ITA No. 436 & 437/Srt/2024 8. As noted above, the facts in these two appeal are similar with ITA No. 435/Srt/2024, the applications of these appellant was also rejected on similar ground. There is similar delay of 79/80 days in filing appeals. Considering the facts that we have already condoned the similar delay in ITA No. 435/Srt/2024, ITA No.(s) 435, 436 & 437/Srt/2024 7 thus, the delay in these two appeals are also condoned with similar observation. Further considering the facts that we have restored the appeal in ITA No. 435/Srt/2024 to the file of ld CIT(A), thus, following the principal of consistency these appeals are also restored back to the file of ld CIT(E) with similar directions. 9. In the result, both these appeals are also allowed for statistical purpose. 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 Self / Amit Ranjan Copy to: 1. Appellant- 2. Respondent- 3. CIT(A)- 4. CIT 5. DR 6. Guard File True copy/ By order Sr. Private Secretary /Private Secretary /Assistant Registrar, ITAT, Surat