Virudhunagar Kshatriya Vidhyasala Managing Board Vs CIT(Exemption) (ITAT Chennai)
In the case of Virudhunagar Kshatriya Vidhyasala Managing Board vs. CIT(Exemption), the Income Tax Appellate Tribunal (ITAT) Chennai has directed the Commissioner of Income Tax (Exemption) [CIT(E)] to review the fresh application under Section 80G of the Income Tax Act. This decision follows the recent CBDT Circular No. 7/2024, which extends deadlines for applications.
Background:
The appeal emerged from an order dated May 31, 2023, by the CIT(E) that rejected the trust’s Form No. 10AB seeking registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The appeal was delayed by 269 days beyond the statutory period. The assessee contended that the delay was due to a misunderstanding regarding the provisional registration’s impact and subsequent issues with filing for final registration.
Key Points of the Case:
- Delay in Filing Appeal: The assessee sought condonation of the 269-day delay, attributing it to procedural confusion and transition issues related to the new electronic regime. The ITAT accepted these reasons as reasonable and admitted the appeal.
- Issue of Provisional Recognition: The CIT(E) had denied provisional recognition due to a mistake in the application process. The ITAT noted that the appellant had already been granted provisional registration and the issue arose from a procedural error.
- CBDT Circular No. 7/2024: The ITAT acknowledged that the assessee had applied afresh as per the extended deadline set by the CBDT Circular No. 7/2024, which allowed additional time until June 30, 2024, for compliance. Given this, the appeal was deemed academic.
- ITAT’s Decision: The ITAT directed the CIT(E) to reconsider the fresh application without prejudice to the appeal. The appeal was dismissed as infructuous due to the resolution provided by the new application in compliance with the extended deadline.
Conclusion:
