KANTIBHAI CHATURBHAI PATEL CHARITABLE TRUST,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1300/AHD/2024

AI Insights

The case involves the Kantibhai Chaturbhai Patel Charitable Trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Ahmedabad, rejecting their application for registration under Section 12A(1)(ac)(v) of the Income Tax Act, 1961. The rejection was primarily due to the application being filed beyond the prescribed 30-day period following the amendment of the trust deed, which was approved by the Charity Commissioner. The tribunal noted that at the time of the application, the CIT(E) did not have the authority to condone the delay, but following an amendment effective from October 1, 2024, the CIT(E) was granted this power. The tribunal decided to set aside the matter to the CIT(E) to exercise this new authority and reconsider the application.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473898 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 17-10-2024
• Assessment Year: misc
• Appeal Filed On: 02-07-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A. P. SINGH
• Assessee Lawyers: SHRIS.N.SOPARKAR
• Keywords: Condonation of delay; Set aside; Charitable institution
• Section: 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 1300/Ahd/2024 (\u0001नधा\u0005रण वष\u0005 / Assessment Year :NA) KantibhaiChaturbhai Patel Charitable Trust 6 Nandi Hill, Opp. ISRO, Jodhpur Tekra, Ahmedabad, Gujarat - 380015 बनाम/ Vs. Commissioner of Income Tax (Exemptions) Ahmedabad \u000eथायीलेखासं./जीआइआरसं./PAN/GIR No. : AABTK0739K (Appellant) .. (Respondent) अपीलाथ\u0015 ओर से/Appellant by : ShriS. N. Soparkar, Sr. Advocate \u0017\u0018यथ\u0015 क\u0019 ओर से/Respondentby: Shri A. P. Singh, CIT. DR Date of Hearing 17/10/2024 Date of Pronouncement 06/11/2024 O R D E R PER SHRINARENDRA PRASAD SINHA, AM: Thisappeal is filed by the assessee against the order of the Commissioner of Income Tax (Exemption), Ahmedabad, (in short ‘the CIT(E)’),dated 26.06.2024rejecting the application for registration under Section 12A(1)(ac)(v) of the Income Tax Act, 1961 (in short ‘the Act’). 2. The brief facts of the case are that the assesseeis a Trust and it had applied for registration u/s.12A(1)(ac)(v)of the Act in Form No.10AB on 01.12.2023. Earlier, it was allowed provisional approval on 31.05.2021 for the A.Y. 2022-23 to 2026-27. The Ld. CIT(E) noted that the trust deed was updated ITA No.1300/Ahd/2024 [KantibhaiChaturbhai Patel Charitable Trust vs.CIT(E)]- 2 – to expand the objective of the charitable activities within the main objects of the Trust. The Trust had filed an application for approval of updated trust deed before the Charity Commissioner which was approved vide order dated 17.08.2023. As per provision of Section 12A(1)(ac)(v) of the Act, the assessee was required to make an application ‘within a period of thirty days from the date of said adoption or modification’, which expired in this case on 16.09.2023. However, the present application was filed by the assessee belatedly on 01.12.2023. The assessee had not applied toCBDT for condonation of delay in this regard. Therefore, the application filed by the assessee in Form 10AB u/s.12A(1)(ac)(v)of the Act was rejected by the Ld. CIT(E) vide the impugned order and the provisional registration granted earlier was also cancelled. 3. Aggrieved with the order of the Ld. CIT(E), the assessee is in appeal before us.The following grounds of appeal have been taken in this appeal: “1. On the facts and circumstances of the case and in law, the Ld. Commissioner of Income-tax (Exemption) ['the CIT(E)'] erred in rejecting the application filed under section 12A(1)(ac)(v) of the Act, on procedure defect of delay in filing application in Form 10AB. 2. On the facts and circumstances of the case and, in law, the CIT(E) erred in rejecting the application filed u/s 124(1)(ac)(v) on the limitation ground that the application has been filed beyond the prescribed time of 30 days from adoption or modification of amendment in object clause. 3. On the facts and circumstances of the case and, in law, the Ld. Commissioner of Income-tax (Exemption) ['the CIT(E)'] further erred in cancelling the provisional registration granted under section 12A of the Act. Without prejudice to Ground No.1, 2 & 3 above: ITA No.1300/Ahd/2024 [KantibhaiChaturbhai Patel Charitable Trust vs.CIT(E)]- 3 – 4. On facts and circumstances of the case and in law, it is prayed before Your Honours that delay in application filed u/s 12A(1)(ac) (v) of the Act may please be condoned and necessary directions may please be given to Ld. CIT(E) for granting approval u/s 12A(1)(ac)(v), considering merits of the case. 5. Your appellant craves leave to add, alter and/or to amend all or any of the grounds before the final hearing.” 4. Shri S. N. Soparkar, Ld. Senior Counsel appearing for the assessee submitted that the application of the assessee was rejected for the reason that there was a slight delay in filing the present application. He explained that the Ld. CIT(E) had rejected the application for the reason that earlier the CIT(E) had no power to condone the delay in filing of the application. However, the provision of Section 12A(1)(ac) has been amended and the PCIT or the CIT has now been empowered to condone the delay w.e.f. 01.10.2024. The Ld. Counsel, therefore, requested that the matter may be set aside to the file of the Ld. CIT(E) with a direction to condone the delay and, thereafter, consider the application of the assessee. 5. Per contra,Shri A. P. Singh, the Ld. CIT. DR had no objection if the matter was set aside to the file of Ld. CIT(E), in view of the amended provisions of the Act. 6. We have considered the rival submissions. The Ld. CIT(E) had rejected the application for the reason that there was slight delay in filing of the present application. As per the finding given by the Ld. CIT(E), the assessee was required to file the present application by 16.09.2023, whereas the application was filed on 01.12.2023. At the relevant point of time, the Ld. ITA No.1300/Ahd/2024 [KantibhaiChaturbhai Patel Charitable Trust vs.CIT(E)]- 4 – CIT(E) had no power to condone the delay. However, the provision of the Act had since been amended by insertion of following proviso below Section 12A(1)(ac)(vi), which is effective from 01.10.2024: Provided that where the application is filed beyond the time allowed in sub-clauses (i) to (vi), the Principal Commissioner or Commissioner may, if he considers that there is a reasonable cause for delay in filing the application, condone such delay and such application shall be deemed to have been filed within time; In view of this newly inserted proviso, the CIT(E) has now power to condone the delay in filing of application for registration u/s.12A(1)(ac)(vi) of the Act. Being a procedural amendment, this amended provision will apply to all pending applications. Therefore, the matter is set aside to the file of the Ld. CIT(E) with a direction to first consider the condonation application of the assessee and thereafter decide the application of the assessee for grant of registration. The assessee is also directed to file a condonation application before the Ld. CIT(E) explaining the reason for delay in filing the present application. The Ld. CIT(E) should allow a proper opportunity of being heard to the assessee before deciding the matter. 7. In the result, the appeal filed by the assessee isallowed for statistical purposes. This Order pronounced on 06/11/2024 Sd/- Sd/- (T.R. SENTHIL KUMAR) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER ITA No.1300/Ahd/2024 [KantibhaiChaturbhai Patel Charitable Trust vs.CIT(E)]- 5 – Ahmedabad; Dated 06/11/2024 S. K. SINHA आदेश क\u0013 \u0014\u0001त\u0016ल\u0018प अ\u001bे\u0018षत/Copy of the Order forwarded to : 1. अपीलाथ\u0015 / The Appellant 2. \u0017\u0018यथ\u0015 / The Respondent. 3. संबं\u001bधत आयकर आयु\u001fत / Concerned CIT 4. आयकर आयु\u001fत(अपील) / The CIT(A)- 5. \"वभागीय \u0017&त&न\u001bध, आयकर अपील)य अ\u001bधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड/ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील$य अ%धकरण, अहमदाबाद / ITAT, Ahmedabad "