Lodge Hamilton Trust, Surat V. CIT(Exemption), Ahmedabad

ITA 478/SRT/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2386 (ITAT-SURAT)
• Duration Of Justice: 20 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: 22-04-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AASHISH POPHARE

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.478/SRT/2024 (Hearing in Physical Court) Lodge Hamilton Trust Manoratha 1 French Garden, Near Wadia Women College Mysore Cafe, Athwalines, Surat-395001 [PAN No. AAATL 1170 A] Vs Commissioner of Income Tax(Exemption) Ahmedabad Room # 609, Floor-6, Aayakar Bhawan (Vejalpur), Nr. Sachin Tower, 100 Foot Road, Anandnagar-Prahladnagar 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 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, “Ld. CIT(E)”] passed under section 80G(5) of Income Tax Act, 1961 (‘the Act’) in rejecting application for approval funds dated 13.03.2024. 2. Rival submission of both the parties heard and record perused. The Ld. Authorized Representative (Ld.AR) for the assessee submits that assessee is an old trust which was set-up in the year 1972 and , it was registered under old provision under section 12A(a) of the Act on 26.11.1980. After amendment in the Act from 01.04.2021, the assessee-trust applied for provisional registration under section 12A, which was granted on 24.09.2021 and valid upto assessment year ITA No.478/SRT/2024 Lodge Hamilton Trust 2 2026-27. After provisional registration under section 12A/AB, the assessee applied for approval under section 80G(5) on 23.09.2022, which was granted vide order dated 05.04.2022 and valued upto assessment year 2024-25. The Ld. AR for the assessee submits that assessee again applied for regular approval of fund vide application dated 29.09.2023, the application of assessee was rejected by Ld.CIT(E) on 13.03.2024 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) 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 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 ITA No.478/SRT/2024 Lodge Hamilton Trust 3 No.7/2024 dated 25.04.2024, the assessee is at liberty to file application afresh in terms of above. 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 under section 80G(5) on 29.02.2022, which was allowed vide order dated 05.04.2022 and is valid upto AY 2024-25. We further find that the assessee on obtaining provisional approval again filed application for regular approval under section 80G(5) vide application dated 27.09.2023, which was rejected by Ld.CIT(E) on 13.03.2024 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, however, the assessee has applied for approval only on 31.01.2024. Thus, the application is time barred. Considering the relaxation granted by CBDT in recent Circular No.7/2024 dated 25.04.2024 extended 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 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 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 ITA No.478/SRT/2024 Lodge Hamilton Trust 4 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. 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