KHIDMAT-E-KHALQ CHARITABLE TRUST,SURAT V. CIT(EXEMPTION), AHMEDABAD

ITA 711/SRT/2024

AI Insights

The case involves Khidmat-E-Khalq Charitable Trust appealing against the decision of the Commissioner of Income Tax (Exemptions), Ahmedabad, which rejected their application for approval under Section 80G(5) of the Income Tax Act, 1961. The rejection was primarily due to the application being filed after the stipulated deadline. The Tribunal considered the circumstances of the delay, including the observance of Ramjan by the main trustee, and found the delay to be neither intentional nor deliberate. Furthermore, the Tribunal noted the extension provided by CBDT Circular No. 7/2024, allowing additional time for filing such applications, and thus restored the matter for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470562 (ITAT-SURAT)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 28-11-2024
• Assessment Year: misc
• Appeal Filed On: 27-06-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Charitable institution

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER ITA No. 711/Srt/2024 (Assessment Year N/A) (Physical hearing) Khidmat-E-Khalq Charitable Trust, 11/2541, Razia Mansion, Opp.-Sufi Hospital, Lalgate, Surat. PAN No. AAETK 3584 B Vs. C.I.T. (Exemptions), Ahmedabad. Appellant/ Assessee Respondent/ Revenue Assessee represented by Shri Yogesh B. Shah, Advocate Department represented by Shri Ravi Kant Gupta, CIT-DR Appeal instituted on 27/06/2024 Date of hearing 28/11/2024 Date of pronouncement 28/11/2024 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of learned Commissioner of Income Tax (Exemptions), Ahmedabad [in short, the ld. CIT(E)] dated 28/02/2024 in rejecting application for approval under Section 80G(5) of the Income Tax Act, 1961 (in short, the Act). The ld. CIT(E) rejected the application by taking view that commencement of activities of assessee-trust is 17/09/2020, the assessee was required to file application in Form-10AB on or before 30/09/2020 as per the CBDT Circular No. 6/2023. 2. Rival submissions of both the parties have been heard and record perused. At the outset of hearing, the learned Authorised Representative (ld. AR) of the assessee fairly submits that there is delay of 31 days in filing appeal ITA 711/Srt/2024 Khidmat-E-Khalq Charitable Trust Vs CIT(E) 2 before Tribunal. Impugned order was passed on 28/02/2024 and the present appeal was filed on 27/06/2024. Though, the Registry of the Tribunal has issued a defect memo pointing out 57 days’ delay in filing appeal. The ld. AR of the assessee submits that there is no intentional or deliberate delay in filing appeal. The impugned order was served upon the assessee on 02/03/2024 and that the assessee was required to file appeal within 60 days of receipt of order i.e. on or before 02/05/2024, though, the appeal was filed on 27/06/2024. In the month of May, 2024, there was a period of Ramjan and the main Trustee of assesse was on fast and was not doing any physical activity during such period. The ld. AR of the assessee submits that the delay in filing appeal is neither intentional nor deliberate. There is a short delay in filing appeal which may be condoned as the assessee has good case on merit. On merit, the ld. AR of the assessee submits that his case is squarely covered by the CBDT Circular No. 7/2024 wherein for filing application for approval of fund was extended up to 30/06/2024. The ld. AR of the assesse submits that since the application of assessee was rejected for technical reason by treating as time barred, therefore, the assessee may be given benefit of Circular No. 7/2024 and the matter may be restored back to the file of ld. CIT(E) to consider it on merit. 3. On the other hand, the learned Commissioner of Income Tax – Departmental Representative (ld. CIT-DR) for the revenue supported the order of ld. CIT(E). On the plea of condonation of delay, the ld. CIT-DR for ITA 711/Srt/2024 Khidmat-E-Khalq Charitable Trust Vs CIT(E) 3 the revenue submits that the Bench may take appropriate view in accordance with law. 4. We have considered the submissions of both the parties and perused the record carefully. Firstly, we are taking the plea of condonation of delay in filing appeal. Before us the ld AR for the assessee vehemently submits that the impugned order was served upon the assessee on 02/03/2024 and that the assessee was required to file appeal on or before 02/05/2024, however, the appeal was filed on 27/06/2024. The ld. AR of the assessee submits that the delay in filing appeal is neither intentional nor deliberate. Considering the facts and circumstance of the case and the explanation offered by assessee, we are of the view that the delay in filing is not intentional or deliberate, hence, delay in filing appeal is condoned. Now adverting to the merit of the appeal. 5. On merits of the case, we find that the ld CIT(E) rejected the application of by taking view that the application for approval of fund was required to be filed on or before 30.09.2022, the assessee file application on 30.09.2023, therefore, the application in Form No. 10AB under Section 80G(5) is not maintainable. We find that CBDT in its recent Circular No. 7/2024 has extended time for filing application for approval under section 80G(5) upto 30.06.2024, therefore the assessee is also allowed to avail the benefit of extended time period. Hence, the matter is restored back to the file of ld CIT(E) with the direction to reconsider the application of assessee within time as per CBDT Circular No. 7/2024 and pass order in accordance ITA 711/Srt/2024 Khidmat-E-Khalq Charitable Trust Vs CIT(E) 4 with law, if the assessee fulfill the requisite conditions. Needless to order that before passing order, the ld. CIT(E) shall grant reasonable opportunity of hearing. The assessee is also given liberty to file additional submission or evidences before ld CIT(E). In the result, the grounds of appeal raised by the assessee are allowed for statistical purposes. 6. In the result, this appeal of assessee is allowed for statistical purposes only. Order announced in open court on 28th November, 2024. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 28/11/2024 *Ranjan Copy to: 1. Assessee 2. Revenue 3. CIT(E) 4. DR 5. Guard File By order Sr. Private Secretary, ITAT, Surat "