Grow Foundation Vs CIT (Exemption) (ITAT Ahmedabad)
Conclusion: Tribunal restored the matter to the CIT(E) for de novo consideration noting that assessee-trust had filed application for grant of final approval under Section 80G(5) on 28.04.2023 and assessee could have filed application for grant of approval on or before 30.09.2023 which further stood extended to 30.06.2024 vide Circular No. 7/2024 dated 25.04.2024 then, the application for grant of final registration under Section 80G(5) could not be denied only on the ground that the same was not filed before 30-09-2023.
Held: Assessee had filed Form No.10AB under section 80G(5). Although, assessee-trust was registered on 01.09.2013, it received provisional approval on 16.09.2022 under first proviso to section 80F (5) (iv), valid until AY 2025-26. CIT(E) noted that the trust’s activities began in 2018-19, and the application should have been filed by 30.09.2022. CIT(E) rejected assessee’s application for failing to file Form 10AB under section 80G(5) within the required time frame. Although provisional approval was granted, assessee did not file the form by the deadline of 30.09.2022, as mandated by law. CIT(E) cited the Kolkata Tribunal’s ruling in a similar case, confirming that no authority could condone such delays without statutory provisions. Assessee filed an appeal before the Tribunal aggrieved by the decision of CIT(E). It was held that whether the time limit for filing Form 10AB for registration under Section 80G(5), which was extended to 30.09.2022, could be interpreted as also being extended to 30.09.2023 and whether Circular No. 6/2023 extended the deadline for Section 12AB registration, but not for Section 80G(5). Tribunal examined this issue to determine if the extension for one could apply to the other. CBDT had extended the due date for filing Form No. 10A and Form No. 10AB under the Income Tax Act to 30.06.2024, as stated in Circular No. 7/2024 dated 25.04.2024. This extension addressed difficulties faced by taxpayers in electronic filing. It applies to both new applications and pending applications that were previously rejected solely for late submission or incorrect section codes. Additionally, existing trusts that failed to file Form No. 10A for AY 2022-23 may now apply for registration within the new deadline. Tribunal restored the matter to the CIT(E) for de novo consideration, noting that assessee filed for final approval under Section 80G(5) on 28.04.2023. It recognized the deadline for filing had been extended to 30.06.2024 under Circular No. 7/2024. The application could not be denied for not being submitted by 30.09.2023, and Tribunal directed CIT(E) to provide the assessee a hearing before making a decision.
