Pranab Micro Services Federation Vs Principal Chief Commissioner of Income Tax And Ors (Calcutta High Court)
In , the Calcutta High Court dismissed a writ petition filed by an institution registered under Section 12AA of the Income Tax Act, 1961, challenging the rejection of its application for exemption and final approval under the Act.
The petitioner had earlier obtained provisional approval under Clause (iv) of the First Proviso to Section 80G(5) through Form 10AC on 28 May 2021 for the period up to Assessment Year 2024–25. Thereafter, the petitioner applied for final approval under Clause (iii) of the First Proviso to Section 80G(5). The Commissioner of Income Tax (Exemption) rejected the application on the ground that the statutory time limit for filing the application had not been followed. The authority observed that the application for final approval was required to be filed at least six months before expiry of the provisional approval period or within six months from commencement of activities, whichever was earlier. Since the petitioner had commenced activities before grant of provisional registration, the prescribed period had already expired.
The petitioner challenged the order before the Income Tax Appellate Tribunal, Kolkata Bench. By order dated 11 March 2024, the Tribunal directed the Commissioner of Income Tax (Exemption) to grant provisional approval under Clause (iii) of the First Proviso to Section 80G(5), if the petitioner was otherwise eligible, and to decide the application for final registration within three months.
