CIT (Exemptions) Vs West Bengal Welfare Society (Calcutta High Court)
In CIT (Exemptions) vs. West Bengal Welfare Society, the Calcutta High Court upheld the Income Tax Appellate Tribunal’s (ITAT) ruling that the application for registration under Section 80G(5)(iii) can be filed within six months of the commencement of activities, despite the application being submitted after six months from the start of activities. The Revenue’s appeal challenged the ITAT’s decision, arguing that the application was late and that the Commissioner of Income Tax (CIT) could not condone delays. The Court found the ITAT’s interpretation correct, noting that provisional registration allows for final application post-commencement. It also considered the Central Board of Direct Taxes’ Circular No. 7 of 2024, which extended deadlines for certain applications.
High Court observed that under clause (iii) of first proviso to Section 80G(5) is to be read that after the grant of provisional registration, if the assessee has not commenced its activities, he may apply for registration within six months of the commencement of this activity or within six months prior to the expiry of the period of provisional approval, whichever is earlier. It further noted that in any case the assessee is eligible to apply for final registration only after grant of provisional approval.
