Surat Sewa Foundations Vs CIT (Exemption) (ITAT Surat)
ITAT Surat held that the application in Form No.10AB u/s 80G(5) of the Income Tax Act cannot be dismissed as barred by limitation in view of CBDT circular 7/2024 dated 25.04.2024. accordingly, matter remitted to the file of CIT(E).
Facts- The assessee filed an application for registration/incorporation in Form No.10AB u/s 12A(1)(ac)(iii) of the Act on 27.10.2023. assessee failed to furnish required details/ documents as required by CIT(E) and hence the application filed in Form No. 10AB u/s 12A(ac)(iii) of the Act was rejected and provisional registration granted on 16.02.2022 was also cancelled. Being aggrieved, the present appeal is filed.
Conclusion- Held that the CIT(E) rejected the application in Form No.10AB u/s 80G(5) of the Act vide his order dated 03.04.2024. Subsequently, Circular No.7/2024, dated 25.04.2024 was issued by the CBDT, extending the time limit up to 30.06.2024. The Tribunal observed that going by the intent and spirit of the above Circular (supra) issued by the CBDT and submission made by the assessee, the application of the assessee deserves to be examined on merits and cannot be dismissed as barred by limitation. There is no reason as to why the above decision would not be applicable to the facts of the instant appeal, which are similar. Hence, following the above decision, the matter is remitted to the file of CIT(E) to admit the application of the assessee-trust as filed within the stipulated period and examine the same on merits as per law after granting reasonable opportunity of being heard to the assessee. The assessee is also directed to be more vigilant in pursuing his case and file necessary documents and evidenced as needed by the CIT(E). For statistical purposes, the appeal of the assessee is treated as allowed.
