Carers World Wide Vs CIT (ITAT Banglore) 

In a significant ruling, the Income Tax Appellate Tribunal (ITAT) in Bangalore has quashed the order of the Commissioner of Income Tax (CIT) (Exemptions), which had rejected the approval under Section 80G of the Income Tax Act, 1961, for Carers Worldwide. This decision comes in light of the Central Board of Direct Taxes (CBDT) extending the deadline for filing Form 10AB.

Carers Worldwide, an organization that provides support to unpaid carers, had been granted provisional approval under Section 80G of the Income Tax Act via Form 10AC, effective from October 15, 2021, to the Assessment Year 2024-25. The organization subsequently filed an application in Form 10AB on November 3, 2023, to regularize this approval. However, the CIT (Exemptions) rejected this application on the grounds that it was filed belatedly as per the proviso to Section 80G(5) of the Act.

Aggrieved by the CIT’s decision, Carers Worldwide appealed to the ITAT. The organization’s representative argued that the CBDT had extended the due date for filing Form 10A/10AB to June 30, 2024, as per a press release dated April 25, 2024. They contended that this extension covered their case, and hence, the CIT’s rejection should be reconsidered.

After reviewing both sides’ arguments, the ITAT noted the CBDT’s extension of the deadline. The Tribunal observed that the extended deadline indeed applied to Carers World wide’s case. Consequently, the ITAT quashed the CIT’s order and remitted the matter back to the CIT (Exemptions) for fresh consideration in light of the extended deadline.

FULL TEXT OF THE ORDER OF ITAT BANGALORE

This appeal by the assessee is filed by the assessee against the order dated 12.04.2024 of the CIT(Exemptions), Bangalore rejecting approval u/s. 80G of the Act.

2. The brief facts are that provisional approval u/s. 80G of the Act was granted in Form 10AC on 15.10.2021 from 15.10.2021 to AY 2024-25 and the assessee filed application in Form 10AB on 03.11.2023 for regularisation of approval u/s. 80G of the Act. The CIT(Exemptions) noted that the application in form 10AB was filed belatedly by the assessee as per proviso to section 80G(5) of the Act. He therefore rejected application of the assessee. Aggrieved, the assessee is in appeals before the ITAT.

3. The ld. AR submitted that the CBDT has extended the due date for filing Form 10A/10AB vide press release dated 25.4.2024 till 30.6.2024. He therefore requested that the issue should be sent back to CIT(Exemptions) for fresh consideration. The ld. DR relied on the orders of lower authorities.

4. After hearing both the sides, we note that the CBDT has extended the due date till 30.6.2024 for filing Form 10AB vide Press release dated 25.4.2024 which is as under:-

Press Release

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
******
New Delhi, 25th April, 2024

CBDT extends due date for filing Form 10A/10AB

The Central Board of Direct Taxes (CBDT), has issued Circular No. 07/2024 dated 25.04.2024 further extending the due date for filing Form 10A/ Form 10AB under the Income-tax Act, 1961 (the ‘Act’) upto 30^th June, 2024.

CBDT had earlier extended the due date for filing Form 10A/ Form 10AB by trusts, institutions and funds multiple times to mitigate genuine hardships of the taxpayers. The last such extension was made by Circular No. 06/2023 extending the date to 30.09.2023.

Considering the representations received by CBDT requesting for further extension of due date for filing of such Forms beyond the last extended date of 30.09.2023, and with a view to avoid genuine hardships to taxpayers, CBDT has extended the due date of filing Form 10A/ Form 10AB upto 30^th June, 2024, in respect of certain provisions of section 10(23C)/ section 12A/ section 80G/ and section 35 of the Act.

CBDT further clarifies that, if any such existing trust, institution or fund had failed to file Form 10A for AY 2022-23 within the extended due date, and subsequently, applied for provisional registration as a new entity and received Form 10AC, can also now avail this opportunity to surrender the said Form 10AC and apply for registration for AY 2022-23 as an existing trust, institution or fund, in Form 10A till 30^th June 2024.

It is also clarified that those trusts, institutions or funds whose applications for re- registration were rejected solely on the grounds of late filing or filing under wrong section code, may also submit fresh application in Form 10AB within the aforesaid extended deadline of 30^th June, 2024.

The applications as per Form 10A/ Form 10AB shall be filed electronically through the e-filing portal of Income Tax Department. The Circular No. 07/2024 is available on www.incometaxindia.gov.in

(Surabhi Ahluwalia)
Pr. Commissioner of Income Tax
(Media & Technical Policy) &
Official Spokesperson, CBDT

5. From the above, it is clear that the assessee’s case is covered by the above CBDT press release. Therefore, the matter in appeal is remitted back to the ld. CIT(Exemptions) for fresh consideration and decision as per law.

6. In the result, the appeal is allowed for statistical purposes.

Pronounced in the open court on this 24^th day of June, 2024.