Case Law Details
North Eastern Social Research Centre Vs CIT (Exemption) (ITAT Kolkata)
The case of North Eastern Social Research Centre vs. CIT(Exemption) before the Income Tax Appellate Tribunal (ITAT) Kolkata revolves around the denial of final approval under Section 80G of the Income Tax Act due to a perceived technical error in the application process.
The appellant, North Eastern Social Research Centre, had initially received provisional approval under Clause (iv) of the First Proviso to section 80G(5) of the Act, valid until Assessment Year 2025-26. Subsequently, they applied for final approval under Clause (iii) of the same proviso. However, the application was rejected by the Commissioner of Income Tax (Exemption) on the grounds that it was filed after the stipulated time period as per statutory provisions and CBDT circulars.
The primary contention was whether the institution’s commencement of activities prior to provisional approval barred them from seeking final approval under the specified clause. The ITAT Kolkata analyzed the relevant provisions of Section 80G(5) and previous judicial decisions, including “Vivekananda Mission Asram vs. CIT,” to determine the applicability of timelines and procedural requirements.
The Tribunal highlighted that the mere commencement of activities before provisional approval did not preclude the institution from applying for final approval once the provisional approval was granted. They underscored that the statutory provisions allowed for the application for final approval within six months of commencement of activities or prior to the expiry of provisional approval, whichever was earlier.
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