S.D SABHA GAUSHALA,FEROZEPUR V. INCOME TAX OFFICER , FEROZEPUR

ITA 506/ASR/2024

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The case involves S.D. Sabha Gaushala, a registered society, appealing against the order of the Commissioner of Income Tax (Exemptions), Chandigarh, which rejected their application for approval under section 80G of the Income Tax Act. The rejection was based on the timing of their application relative to the commencement of their activities. The Assessee argued that the rejection did not consider the extension provided by CBDT Circular No. 7/2024, which allowed more time for filing Form No. 10AB. The Tribunal found merit in the Assessee's argument and remanded the case for re-evaluation in accordance with the circular.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471493 (ITAT-AMRITSAR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUPAM KANT GARG
• Assessee Lawyers: ASHRAY SARNA
• Keywords: Question of law
• Section: 12A; 10; 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, AMRITSAR BEFORE SHRI UDAYAN DAS GUPTA, JUDICIAL MEMBER AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकरअपीलसं./ITA No. 506/ASR/2024 िनधा\u000fरणवष\u000f / Assessment Year : 2024-25 S.D. Sabha Gaushala (Regd.), I/s Amritsari Gate, Ferozepur 152002 Vs. बनाम The ITO, Ferozepur \u0015थायीलेखासं./PAN NO: AAHAS3691M अपीलाथ\u0019/Appellant \u001a\u001bयथ\u0019/Respondent ( HybridHearing ) िनधा\u000f\u001cरतीक\u001eओरसे िनधा\u000f\u001cरतीक\u001eओरसे िनधा\u000f\u001cरतीक\u001eओरसे िनधा\u000f\u001cरतीक\u001eओरसे/Assessee by : Shri Ashray Sarna, CA राज\u0015वक\u001eओरसे राज\u0015वक\u001eओरसे राज\u0015वक\u001eओरसे राज\u0015वक\u001eओरसे/ Revenue by :Shri Anupam Kant Garg, CIT DR सुनवाईक\u001eतार#ख सुनवाईक\u001eतार#ख सुनवाईक\u001eतार#ख सुनवाईक\u001eतार#ख/Date of Hearing : 19.12.2024 उदघोषणाक\u001eतार#ख उदघोषणाक\u001eतार#ख उदघोषणाक\u001eतार#ख उदघोषणाक\u001eतार#ख/Date of Pronouncement : 03.02.2025 आदेश आदेश आदेश आदेश/Order Per Krinwant Sahay, AM: Appeal in this case has been filed by the Assessee against the order dated 09.08.2024passed by Commissioner of Income Tax (Exemption), [herein referred to as ‘CIT(E)’], Chandigarh. 2. Grounds of appeal are as under: - 1. That, the orders passed by the Ld. Commissioner dated 09.08.2024 is illegal, uncalled for and against the law & facts. 506-Asr--2024 S.D. Sabha Gaushala, Ferozepur 2 2 That the Ld. Commissioner of Income Tax (Exemptions). Chandigarh has passed the rejection Order merely on conjectures and surmises without any legal basis. 3 That, the Ld. Commissioner of Income Tax(Exemptions). Chandigarh has miserably failed to appreciate the facts of the case that society has already got Registered under section 80G(5) and order has been passed by Commissioner of Income Tax. Bathinda. So, the order of the Ld. Commissioner of Income Tax (Exemptions). Chandigarh is null and void-ab-intio, it may please be overturned. 4. That, the Ld. Commissioner of Income Tax(Exemptions), Chandigarh has also failed to consider the CBDT Circular no. 7/2024 dated 25th April, 2024 regarding extension of due date of filing of Form no. 10AB under the Income Tax Act. 1961 till 30th June 2024 duly submitted to Ld. Commissioner of Income Tax (Exemptions), Chandigarh in response to show cause notice dated: 04 07 2024. In this regard please refer to paragraph 3(H) of the said circular, which is read as under: - \"Form no. 10AB, in case of an application under clause (iii) of the first proviso to clause 23(C) of section 10 OR under sub clause (iii) of clause (ac) of sub-section (1) of section 12A or clause (iii) of the first proviso to sub section (5) of section 8oG of the Act, due has been extended till 30-06-2024\". Further also refer to paragraph 4 of this circular (No. 7/2024 dated 25/04 2024) which states as under: - 506-Asr--2024 S.D. Sabha Gaushala, Ferozepur 3 \"In cases where any trust, institution or fund has already made an application in Form No. 10AB under 5 The said provisions on or before the issuance of this Circular, and where the Principal Commissioner or Commissioner has not passed an order before the issuance of this Circular, the pending application in Form No 10AB may be treated as a valid application\". Thus, the Ld. Commissioner of Income Tax (Exemptions), Chandigarh has passed the rejection order without considering the applicability of above circular which clearly states that application in Form No. 10AB, if any pending before the Principal Commissioner or Commissioner who has not passed an order before the issuance of this Circular may please treat it as a valid application. Our application in Form 10AB dated 16-02-2024 has been furnished under correct code i.e. under section 80G(5)(iii) Which was pending before as on the date of this circular i.e. Circular no. 7 dated 25- 04-2024. Therefore, our case is fairly covered under paragraph 3(ii) and paragraph 4 the said circular. 6 So. the Ld. Commissioner of Income Tax (Exemptions), Chandigarh has erred in law by not applying the above said circular and rejected the application of Assessee. 7 The Assessee craves leave to argue on any other question of law or facts at the time of hearing of this appeal. 3. During the proceedings before us, the ld. Counsel for the Assessee argued that the rejection of application for final approval is not taken into consideration in terms of CBDT Circular No.7/2024 506-Asr--2024 S.D. Sabha Gaushala, Ferozepur 4 dated 25.4.2024 regarding extension of due date of filing of Form No. 10AB under the Income Tax Act, 1961 till 30.6.2024. During proceedings, the ld. Counsel further argued that the rejection of the application for final approval u/s 80G has been done by the ld. CIT(E) noting that the date of commencement of the activities of the Trust was 05.09.1989 and the filing of the application in Form No. 10AB was 06.02.2024, which was after expiry of six months of commencement of its activities. The ld. Counsel further submitted that now CBDT has issued a Circular No.7 /2024 dated 25.4.2024 and it has extended the time limit for filing Form No.10AB upto30.6.2024 for approval u/s 80G of the Act. The ld. Counsel submitted as under:- “that, the Ld. Commissioner of Income Tax (Exemptions), Chandigarh has also failed to consider the CBDT Circular no. 7/2024 dated 25th April, 2024 regarding extension of due date of filing of Form no. 10AB under the Income Tax Act. 1961 till 30th June 2024 duly submitted to Ld. Commissioner of Income Tax (Exemptions), Chandigarh in response to show cause notice dated: 04 07 2024. In this regard please refer to paragraph 3(H) of the said circular, which is read as under: - \"Form no. 10AB, in case of an application under clause (iii) of the first proviso to clause 23(C) of section 10 OR under sub clause (iii) of clause (ac) of sub-section (1) of section 12A or clause (iii) of the first proviso to sub section (5) of section 8oG of the Act, due has been extended till 30-06-2024\". Further also refer to paragraph 4 of this circular (No. 7/2024 dated 25/04 2024) which states as under: - 506-Asr--2024 S.D. Sabha Gaushala, Ferozepur 5 \"In cases where any trust, institution or fund has already made an application in Form No. 10AB under the said provisions on or before the issuance of this Circular, and where the Principal Commissioner or Commissioner has not passed an order before the issuance of this Circular, the pending application in Form No 10AB may be treated as a valid application\". Thus, the Ld. Commissioner of Income Tax (Exemptions), Chandigarh has passed the rejection order without considering the applicability of above circular which clearly states that application in Form No. 10AB, if any pending before the Principal Commissioner or Commissioner who has not passed an order before the issuance of this Circular may please treat it as a valid application. Our application in Form 10AB dated 16-02-2024 has been furnished under correct code i.e. under section 80G(5)(iii) Which was pending before as on the date of this circular i.e. Circular no. 7 dated 25-04-2024. Therefore, our case is fairly covered under paragraph 3(ii) and paragraph 4 the said circular. 4. The ld. Counsel further prayed before the Bench that the matter maybe remitted back to the CIT(E) to verify the issue and pass the order accordingly 5. The ld. DR did not object to this. 6. We have considered the findings of the ld. CIT(E) on this issue in his order and we have also considered the Circular No. 7/2024 issued by the CBDT vide F.No.173/25/2024-ITA-I dated 25th April, 2024. As per the Circular the CBDT has extended the date up to 30.06.2024 of 506-Asr--2024 S.D. Sabha Gaushala, Ferozepur 6 filing of Form No. 10AB. Thus, the matter is remanded back to the file of the CIT(E) Chandigarh to examine the issue in the light of the latest Circular No. 7/2024 dated 25.4.2024 and pass an order accordingly. 7. In the result, the appeal of the Assessee is allowed for statistical purposes. Order pronounced on 03.02.2025 Sd/- Sd/- (UDAYAN DAS GUPTA) (KRINWANT SAHAY) Judicial Member Accountant Member “आर आर आर आर. . . .क े क े क े क े. . . .” आदेशक\u001e\u001aितिल*पअ+े*षत आदेशक\u001e\u001aितिल*पअ+े*षत आदेशक\u001e\u001aितिल*पअ+े*षत आदेशक\u001e\u001aितिल*पअ+े*षत/ Copy of the order forwarded to : 1. अपीलाथ\u0019 अपीलाथ\u0019 अपीलाथ\u0019 अपीलाथ\u0019/ The Appellant 2. \u001a\u001bयथ\u0019 \u001a\u001bयथ\u0019 \u001a\u001bयथ\u0019 \u001a\u001bयथ\u0019/ The Respondent 3. आयकरआयु, आयकरआयु, आयकरआयु, आयकरआयु,/ CIT 4. *वभागीय\u001aितिनिध *वभागीय\u001aितिनिध *वभागीय\u001aितिनिध *वभागीय\u001aितिनिध, आयकरअपीलीयआिधकरण आयकरअपीलीयआिधकरण आयकरअपीलीयआिधकरण आयकरअपीलीयआिधकरण, च0ड#गढ़ च0ड#गढ़ च0ड#गढ़ च0ड#गढ़/ DR, ITAT, CHANDIGARH 5. गाड\u000fफाईल गाड\u000fफाईल गाड\u000fफाईल गाड\u000fफाईल/ Guard File आदेशानुसार आदेशानुसार आदेशानुसार आदेशानुसार/ By order, सहायकपंजीकार/ Assistant Registrar "