Aastha Foundation, Ahmedabad V. The Commissioner of Income Tax (Exemption), Ahmedabad

ITA 564/AHD/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 4773 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 12-09-2023
• Assessment Year: misc
• Appeal Filed On: 17-07-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MSSAUMYAPANDEYJAIN; FORTHEASSESSEEBEFOREUSCONTENDEDTHATTHEASSESSEEHAS
• Assessee Lawyers: SHRISULABHPADSHAH

Judgement Text

आयकरअपीलीयअधिकरण , अहमदाबादनयायपीी INTHEINCOMETAXAPPELLATETRIBUNAL, ‘’C’’BENCH,AHMEDABAD BEFOREMsSUCHITRAKAMBLE,JUDICIALMEMBER And SHRIWASEEMAHMED,ACCOUNTANTMEMBER आयकरअपीलसं./ITANo.564/AHD/2023 धििाधरणवरध / Asstt.Year:N.A AasthaFoundation, 7GroundFloor, SantkrupaShoppingCentre, MeenaBazar, Meghaninagar, Ahmedabad-380016. PAN:AAJTA1615L Vs. TheCommissionerof IncomeTax(Exemption), Ahmedabad. (Applicant)(Respondent) Assesseeby:ShriSulabhPadshah,A.R Revenueby:MsSaumyaPandeyJain,Sr.D.R सुिवाईकीतारीख /DateofHearing:13/09/2023 घोरणाकीतारीख/DateofPronouncement:08/12/2023 आदेश /ORDER PERWASEEMAHMED,ACCOUNTANTMEMBER: ThecaptionedappealhasbeenfiledattheinstanceoftheAssesseeagainst theorderoftheLearnedCommissionerofIncometax(Exemption),Ahmedabad, arisinginthematteroforderpassedunders.80GoftheIncomeTaxAct,1961 (here-in-afterreferredtoas"theAct")relevanttotheAssessmentYearN.A. ITAno.564/AHD/2023 A.Y.N.A 2 2.Theeffectiveissueraisedbytheassesseeisthatthelearned CIT(Exemption)erredinrejectingtheapplicationforregistrationundersection 80G(5)oftheAct. 3.Thefactsinbriefarethattheassesseeisacharitabletrust.Theassessee filedapplicationforapprovaloftrustundersection80G(5)oftheActinForm10AB ason22-12-2022.ThelearnedCIT(Exemption)onverificationofdetailsfiledwith theapplicationfoundthatassesseetrustwasincorporated/created/registeredon 10 th March2022andgotprovisionalapprovalinForm10ACdated12 th May2022 undertheprovisionsofsection80G(5)(iv)oftheAct.ThelearnedCIT(Exemption) furthernoticedthataspertheprovisionsofsection80G(5)oftheAct,the assesseeisrequiredtofileapplicationforapprovalwithin6monthspriortothe expiryofprovisionalapprovalorwithin6monthsofcommencementofits activities.ButtheassesseefiledapplicationunderForm10ABbeyondthetime limitprescribed.Therefore,thelearnedPCIT(Exemption)rejectedtheapplication oftheassessee. 4.BeingaggrievedbytheorderofthelearnedCIT(Exemption),theassessee isinappealbeforeus. 5.ThelearnedARfortheassesseebeforeuscontendedthattheassesseehas movedanapplicationforregistrationwithinthetimepermittedbutthesamewas rejectedonaccountofsomedefect.Therefore,afreshapplicationwasfiled.As suchitwasprayedbythelearnedARtorestoretheissuetothelearnedCIT (exemption)forfreshadjudicationaspertheprovisionsoflaw. 6.Ontheotherhand,thelearnedDRvehementlysupportedtheorderofthe learnedCIT(exemption). ITAno.564/AHD/2023 A.Y.N.A 3 7.Wehaveheardtherivalcontentionsofboththepartiesandperusedthe materialsavailableonrecord.AdmittedlythelearnedCIT(Exemption)hadrejected theapplicationoftheassesseeforapprovalundersection80G(5)oftheActfor thereasonthattheapplicationunderform10ABwasfiledafterthetimelimit prescribed.Admittedly,theassesseetrustwascreatedon10 th March2022and alsogotprovisionalapprovalundersection80G(5)oftheActason12 th May2022 andtheassesseebeforelearnedCIT(Exemption)claimedthatitsactivity commencedason6 th May2022.Therefore,theassesseewasrequiredtofile applicationunderForm10ABforapprovalonorbefore6 th November2022i.e. within6monthsfromcommencementofactivity.Atthisjuncture.itisalso importanttohighlightthattheassesseehadfirstfiledapplicationunderForm 10ABason5 th September2022burinadvertentlyselectedwrongcodei.e.code 13insteadofcode14.Accordingly,theassesseewithdrewsuchapplicationon12 th December2022andfiledfreshapplicationonsamedaywhichhasbeenrejected holdingtheapplicationfiledafterexpiryoftimelimitprescribed.Inthegivenfacts thequestionarisesbeforeus,canthefreshapplicationfiledbytheassesseein Form10ABdated22 nd December2022beheldtobefiledwithinthetimelimitor filedaftertheexpiryoftimelimit. 7.1Bethatasthecasemaybe,wenotethattheidenticalissuewasthere beforethecoordinatebenchofthistribunalinthecaseofBestBudsPetCarevs. TheCIT(Exemption)inITANo.731/AHD/2023.Assuchinthecaseof“BestBuds PetCare”theimpugnedtrustwascreated24 th April2021andprovisionalapproval undersection80G(5)oftheActwasgrantedason1 st October2021butthe assesseefailedtofileapplicationundersectionForm10ABtogetfinalapproval withintheperiodof6month.Assuchtheimpugnedtrustwasofbona-fidebelief thatprovisionalapprovalgrantedwassufficient.However,onrealizationof mistakefiledapplicationforfinalapprovalinForm10ABason28-02-2023and samewasrejectedbythelearnedCIT(Exemption)holdingasapplicationfiledafter expiryofstatutorytimelimit.Inthegivenfacts,thetribunalvideorderdated30- ITAno.564/AHD/2023 A.Y.N.A 4 11-2023decidedtheissueinfavouroftheassesseeanddirectedthelearned CIT(exemption)toreconsidertheapplicationoftheassessee.Therelevantfinding ofthebenchreadsasunder: 6.2Readingoftheabovesub-sectionmakesitclearthatthereisnoprovisiontocondone thedelayinRegistrationoftheTrust.However,theCBDThasextendedtheabovetime limitsbyinvokingsection119oftheActbyissuingcircularNo.8of2022,dated31-03- 2022extendingthetimelimitupto30thSeptember,2022.ItisthereafterbycircularNo.6 of2023dated24-05-2023clarifiedasfollows:- 7.Itmaybealsonotedthattheextensionofduedateasmentionedinparagraph 5(ii)shallalsoapplyincaseofallpendingapplicationsunderclause(iii)ofthe firstprovisotoclause(23C)ofsection10orsub-clause(iii)ofclause(ac)of sub-section(I)ofsection12AoftheAct,asthecasemaybe.Hence,incases wherethetrusthasalreadymadeanapplicationinFormNo.10ABunderthesaid provisionsbutsuchapplicationhasbeenfurnishedafter30.09.2022andwherethe PrincipalCommissionerorCommissionerhasnotpassedanorderbeforethe issuanceofthisCircular,thependingapplicationinFormNo.10ABmaybe treatedasavalidapplication.Further,incaseswherethetrusthadalreadymade anapplicationinFormNo.10AB,andwherethePrincipalCommissioneror Commissionerhaspassedanorderrejectingsuchapplication,onorbeforethe issuanceofthisCircular,solelyonaccountofthefactthattheapplicationwas furnishedaftertheduedate,thetrustmayfurnishafreshapplicationinFormNo. 10ABwithintheextendedtimeprovidedinparagraph5(ii)i.e.30.09.2023. However,thisclause(7)wasnotreferredbytheCIT(E)inhisorderwhilerejectingthe registrationu/s.80GoftheActtotheassesseeonthesolegroundthathehasnopower tocondonethedelayofbelatedfilingofFormno.10ABu/s.80G(5)oftheAct. 6.3Readingoftheabovecircularmakesitclearthatthetimeisextendeduptill30-09- 2023,whereastheassesseefiledbelatedapplicationon28-02-2023.Theabovecircular alsoclarifiedthatevenincase,wheretheapplicationinFormNo.10ABwasrejectedby theCIT(E)onorbeforeissuanceofthiscirculardated24-05-2023,theassesseetrustcan makefreshapplicationinForm10ABonorbefore30-09-2023.Thus,theld.CIT(E)has notconsideredtheclause7oftheCircularno.6of2023therebyrejectedtheapplication whichisinourconsideredviewisagainstthecircularissuedbytheCBDT.Therefore,we herebysetasidetheimpugnedorderpassedbyCIT(E)withadirectiontoreconsiderthe FromNo.10ABforfinalregistrationu/s.80GoftheActbygivingproperopportunityof beingheardtotheassesseetrust.Needlesstosaytheassesseetrustshouldco-operateby furnishingalltherequireddetailsasmandatedunderthelawforgrantingfinalregistration u/s.80GoftheAct. 7.2Thus,respectfullyfollowingthefindingofthistribunalintheabove- mentionedcase,involvingidenticalfactsandcircumstances,weherebysetaside theorderofthelearnedCIT(Exemption)withdirectiontoreconsiderthe applicationoftheassesseeinForm10ABforfinalapprovalbyconsideringthe sameasfiledwithinprescribedtimelimit.Hencethegroundofappealbythe assesseeisherebyallowedforstatisticalpurposes. ITAno.564/AHD/2023 A.Y.N.A 5 8.Intheresult,theappealfiledbytheassesseeisallowedforstatistical purposes. OrderpronouncedintheCourton08/12/2023atAhmedabad. Sd/-Sd/- (SUCHITRAKAMBLE)(WASEEMAHMED) JUDICIALMEMBERACCOUNTANTMEMBER (TrueCopy) Ahmedabad;Dated08/12/2023 Manish