Anudip Foundation for Social Welfare Vs CIT(Exemption) (ITAT Kolkata)
In a significant ruling by the Income Tax Appellate Tribunal (ITAT) Kolkata, the case of Anudip Foundation for Social Welfare vs. Commissioner of Income Tax (CIT) (Exemption) highlights the complexities involved in obtaining final approval under Section 80G of the Income Tax Act, 1961. The judgment, dated 22nd November 2023, revolves around the rejection of the foundation’s application for final approval under Section 80G(5)(iii) of the Act. This article provides a detailed analysis of the case, the legal provisions involved, and the Tribunal’s decision.
Background of the Case
Anudip Foundation for Social Welfare, already registered under Section 80G(5) of the Income Tax Act since 2008, faced a legal hurdle following the amendments introduced by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Effective from 1st April 2021, these amendments required institutions with existing approvals to reapply for approval under the amended provisions.
The foundation, instead of reapplying for the final approval under Clause (i) of the First Proviso to Section 80G(5), applied for provisional approval under Clause (iv). This provisional approval was granted, valid until the Assessment Year 2024-25. However, when the foundation applied for final approval, the CIT (Exemption) rejected the application citing the expiration of the prescribed time limit.
