Vivekananda Mission Asram Vs CIT (ITAT Kolkata)
Income Tax Appellate Tribunal (ITAT), Kolkata, has sided with Vivekananda Mission Asram, allowing its appeal against the Commissioner of Income Tax (Exemption), Kolkata’s rejection of its application for registration under Section 80G of the Income Tax Act, 1961. The rejection was primarily based on technical grounds related to the timing of the application, which the tribunal deemed unwarranted given the circumstances.
Vivekananda Mission Asram, a society registered as a charitable institution under Section 12A since 1976 and previously approved under Section 80G since 1977, was required to re-apply for 80G registration following amendments to the relevant provisions in 2020. The asram duly applied for and received provisional approval under Section 80G(5)(iv) in November 2021, valid until Assessment Year 2024-25.
Subsequently, the asram applied for final approval under Section 80G. However, it inadvertently mentioned the incorrect clause of the relevant provision in its initial application (Form 10AB). Upon being advised by the Commissioner of Income Tax (Exemption) to rectify this, the asram withdrew the incorrect application in February 2023 and filed a fresh application on February 13, 2023, citing the correct clause.
Despite the asram complying with the department’s suggestion to file a fresh application, the Commissioner of Income Tax (Exemption) rejected the new application. The primary reason cited was that the application was filed beyond the stipulated deadline. The Commissioner contended that the time limit for final approval under Section 80G(5)(iii) was either six months before the expiry of the provisional approval or within six months of the commencement of activities, whichever is earlier. The Commissioner noted that the asram had been operational for a long time and that the extended deadline for submitting such applications, as per a CBDT circular, was September 30, 2022, which the asram’s fresh application missed.
