ORNAY FOUNDATION,PANCHKULA V. COMMISSIONER OF INCOME TAX,EXEMPTIONS, CHANDIGARH, CHANDIGARH

ITA 290/CHANDI/2024

AI Insights

The case involves Ornay Foundation, which filed an appeal against the order of the CIT (Exemptions), Chandigarh, rejecting their application under Section 80G of the Income Tax Act. The application was initially deemed non-maintainable as it was filed after the commencement of the Trust's activities and beyond the six-month period required for filing. However, a subsequent CBDT Circular extended the deadline for filing such applications, which the assessee cited in their appeal. The Tribunal decided to remit the matter back to the CIT (Exemptions) for a fresh examination on merits, considering the extended deadline.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472699 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-09-2024
• Assessment Year: 2024-2025
• Appeal Filed On: 22-03-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUSUM BA NSAL
• Assessee Lawyers: TEJMOHAN SINGH
• Keywords: Set aside
• Section: 80G

Judgement Text

" आयकर अपील य अ\u000bधकरण,च\u0010डीगढ़ \u0014यायपीठ , च\u0010डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘B’ CHANDIGARH BEFORE: SHRI A.D.JAIN, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 290/CHD/2024 \u0001नधा\u0005रण वष\u0005 / Assessment Year : 2024-25 Ornay Foundation, Panchkula, C/o Shri Tej Mohan Singh, Advocate #527, Sector 10-D, Chandigarh. बनाम VS The CIT (Exemptions), Chandigarh. \u000eथायी लेखा सं./PAN /TAN No: AADCO9771G अपीलाथ\u0019/Appellant \u001a\u001bयथ\u0019/Respondent \u0001नधा\u0005\u001cरती क\u001f ओर से/Assessee by : Shri Tej Mohan Singh, Advocate राज\u000eव क\u001f ओर से/ Revenue by : Smt. Kusum Bansal, CIT, DR तार\"ख/Date of Hearing : 25.09.2024 उदघोषणा क\u001f तार\"ख/Date of Pronouncement : 08.10.2024 PHYSICAL HEARING आदेश/ORDER PER A.D.JAIN, VICE PRESIDENT This is an appeal filed by the assessee against the order of ld. CIT(Exemptions) Chandigarh dated 13.03.2024 pertaining to assessment year 2024-25. 2. During the courses of hearing, the ld. AR submitted that the assessee had moved an application u/s 80G of the Income Tax Act before the ld. CIT (Exemption) on 22.09.2023 ITA 290/CHD/2024 A.Y. 2024-25 2 electronically. A notice was issued to the assessee on 26.10.2023 through ITBA to specify the date of commencement of activities by the Trust as well as details/documents. In response to the said notice, the assessee furnished reply vide letter dated 29.11.2023 alongwith annexures which were considered by the ld. CIT (Exemptions) and it was noticed that the activities commenced on 27.02.2023 and the date of filing of application in Form No.10AB is 22.09.2023, which is after expiry of six months of commencement of its activity. Therefore, the ld. CIT (Exemptions) rejected the application of the assessee holding it as non-maintainable without going into the merits of the application. 3. Against the said decision of the ld. CIT (Exemptions), the assessee is in appeal before this Tribunal. 4. The ld. AR has submitted that the CBDT vide Circular No. 7/2024 has extended the time limit for filing Form 10AB upto 30.06.2024 for approval under Section 80G, therefore, the ld. Counsel for the assessee has requested that the matter may be set aside to the file of the ld. CIT (Exemptions) to decide the same afresh. ITA 290/CHD/2024 A.Y. 2024-25 3 5. The ld. DR has not raised any objection to the request of the assessee. 6. We have heard the parties and have perused the material on record. We find that the CBDT vide Circular No. 07/2024 dated 25/04/2024 has provided that where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of the Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish afresh application in Form No. 10AB within the extended time provided in paragraph 3(H) i.e. 30/06/2024. In the present case, we are of the considered opinion that the application of the assessee deserves to be examined on merits and cannot be dismissed as barred by limitation. 7. In light of the same, we remit the matter to the file of the ld CIT(E) to admit the application of the assessee as filed within the stipulated period and examine the same on merits as per law after providing reasonable opportunity to the assessee. Needless to say, the assessee shall cooperate in the fresh proceedings before the CIT(E). ITA 290/CHD/2024 A.Y. 2024-25 4 8. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced on 08.10.2024. Sd/- sd/- (KRINWANT SAHAY) (A.D.JAIN ) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश क\u0002 \u0003ितिलिप अ\tेिषत/ Copy of the order forwarded to : 1. अपीलाथ\u000f/ The Appellant 2. \u0003\u0010यथ\u000f/ The Respondent 3. आयकर आयु\u0014/ CIT 4. िवभागीय \u0003ितिनिध, आयकर अपीलीय आिधकरण, च\u0018डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड\u001c फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "