THE GOD'S GIFT FOUNDATION,GANDHINAGAR V. THE CIT (EXEMPTION), AHMEDABAD

ITA 546/AHD/2024

AI Insights

The case involves The God’s Gift Foundation, a trust, appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected their application for approval under Section 80G(5)(iii) of the Income Tax Act, 1961. The initial rejection was due to the application being filed late, beyond the stipulated time following provisional approval. However, subsequent to the filing of the appeal, the CBDT extended the deadline for such applications, and the trust filed a new application within this extended period. The tribunal found the appeal to be infructuous due to the timely filing of the new application and directed the CIT (Exemption) to consider this new application.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470439 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 03-10-2024
• Assessment Year: misc
• Appeal Filed On: 27-03-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R N DSOUZA
• Assessee Lawyers: PARIN SHAH
• Keywords: Gift
• Section: 80G

Judgement Text

"ITA No.546/Ahd/2024 Assessment Year: NA Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH, AHMEDABAD BEFORE SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA No.546/Ahd/2024 The God’s Gift Foundation Navo Vaghela Vas, Randesan, Gandhinagar- 382007 Gujarat. [PAN – AADTT9277H Vs. Commissioner of Income Tax (Exemption), Ahmedabad. (Appellant) (Respondent) Assessee by Shri Parin Shah, AR Revenue by Shri R N Dsouza, CIT-DR Date of Hearing 03.10.2024 Date of Pronouncement 05.11.2024 O R D E R PER SHRI NARENDRA PRASAD SINHA, AM: The present appeal is filed by the applicant trust against the order dated 04.03.2024 passed by the Commissioner of Income Tax (Exemption) Ahmedabad, (in short ‘the CIT(Exemption)’), rejecting the application for approval u/s. 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. The application for approval of the Trust under clause (iii) of first Proviso to Sub-Section (5) of Section 80G of the Income Tax Act, 1961 was filed electronically in Form No.10AB on 30.09.2023. The ld. CIT(Exemption) observed that the assessee had got provisional approval u/s 80G(5) of the Act and, therefore, was required to file application in Form 10AB within the time period of at least six ITA No.546/Ahd/2024 Assessment Year: NA Page 2 of 3 months prior to the expiry of the period of provisional approval or within six months of commencement of its activities, whichever was earlier. The CIT(Exemption) noticed that the assessee trust was incorporated on 24.10.2020 and provisional approval was issued to the trust on 23/12/2022. As the present application was filed belatedly by the assessee the CIT (Exemption) issued notice on 28/11/2023 calling for an explanation of the assessee in this regard. In reply dated 09/12/2023 the assessee had submitted that the activities of the trust were started on 01/04/2023 but no explanation for the delay in filing the present application was given. The CIT(Exemption) has observed that the applicant trust was required to file the application in Form 10AB on or before 30/09/2022. As the present application was filed belatedly on 30/09/2023 i.e. after a year, the same was rejected by the ld. CIT(Exemption) as non-maintainable. 3. The Ld. AR submitted that the CBDT vide Circular no.7/2024 has extended the time limit for making application for approval of exemption under Section 80G(5) of the Act till 30.06.2024. Accordingly, the assessee has filed a fresh application on 19/06/2024, a copy of which has been brought on record. The Ld. AR submitted that the present appeal be disposed of with a direction to the CIT(Exemption) to consider and approve the fresh application of the assessee. 4. The Ld. DR relied upon the order of the ld. CIT(Exemption). 5. We have considered the submissions and perused the relevant material available on record. It is pertinent to note that the CBDT vide recent Circular No.7/2024 dated 25th April, 2024, had allowed another opportunity for grant of approval u/s. 80G(5)(iii) of the Act by extending time limit for filing the application in Form No. 10AB till 30.06.2024. The assessee has filed a fresh application on 19/06/2024 for registration within this extended time limit. Thus, the present appeal ITA No.546/Ahd/2024 Assessment Year: NA Page 3 of 3 filed in respect of dismissal of the earlier application filed by the assessee under Section 80G(5) of the Act has to be taken inconsonance with the latest Circular No.7/2024 issued by the CBDT dated 25th April, 2024. Since the time limit for application was extended till 30.06.2024, and the assessee has already exercised the option to file the fresh application within the stipulated time issued by the CBDT, the present appeal has become infructuous and is, therefore, dismissed. The CIT (Exemption) is, however, directed to consider the fresh application of the assessee in accordance with law. 6. In the result, the appeal of the assessee is dismissed for statistical purpose. Order pronounced in the open Court on this 05th day of November, 2024. Sd/- Sd/- (T.R. SENTHIL KUMAR) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER (True Copy) Ahmedabad : Dated 05/11/2024 "