The Chennai bench of the Income Tax Appellate Tribunal (ITAT) noted that the extension timeline provided in Form No. 10AB for Section 12A recognition was deemed to be an extension for the approval renewal under the first provision of Section 80G(iii) of the Income Tax Act, 1961.
The assessee was an old trust continuing to exist since 14.07.2017, as per the date of incorporation/registration. The assessee trust existed much before the commencement of the new regime of registration and approval.
The assessee moved final registration application under Section 12A of the Income Tax Act in Form No.10AB on 29.09.2022 and final registration was granted under Section 12A of the Income Tax Act, in Form No.10 AD vide dated 30.05.2023. The assessee finally moved application for obtaining final registration under Section 80G of the Income Tax Act in Form No.10AB on 14.11.2022.
The final registration was rejected by CIT (Exemption) under Section 80G of the Income Tax Act on 30.05.2023. The Revenue brought out the fact that the date of commencement of activities is also 30.03.2022 but assessee wrongly claimed commenced of activity date as 27.05.2022, which was an afterthought
Mr. N. Arjun Raj, representing the assessee stated that the date of incorporation of this trust is 10.05.2018 and assessee filed application for obtaining provisional registration under Section 12A of the Income Tax Act in Form No.10A under the new regime, first time vide dated 02.12.2020.
It was added that the provisional registration was granted by CIT (Exemption) under Section 12A of the Income Tax Act in Form No.10AC under the new regime on 27.05.2021. Subsequently, the assessee filed application for obtaining provisional approval / registration u/s.80G of the Act in Form No.10A on 15.11.2021 and consequently provisional registration was granted under Section 80G of the Income Tax Act in Form No.10A on 22.11.2021
Mr. R. Clement Ramesh Kumar representing the revenue stated that the extended date as extended by CBDT is 30.09.2022 is applicable in this case. But the assessee filed a belated application in Form No.10AB on 24.11.2022 and hence, the CIT (Exemption) has rightly rejected the same.
The two member bench of the tribunal comprising Manoj Kumar Agarwal (Accountant member) and Mahavir Singh (Vice President) set aside the order of CIT (Exemption) on the same reason and remand the matter back to the file of the CIT (Exemption) for deciding the issue on merits as per law. The appeal of the assessee was allowed.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
