The Pune bench of Income Tax Appellate Tribunal ( ITAT ) while allowing the appeal filed by the assessee held that application for approval under section 80G of the Income Tax Act filed within the prescribed time limit.
The assessee Kailash Math Trust, filed application in Form 10AB for approval u/s 80G of the Act. However the Commissioner of Income Tax ( Exemption ) rejected the application only on one ground that the application has been filed beyond the specified time and hence held it as time barred.
Aggrieved with the order of CIT ( Exemption ) assessee filed appeal before the tribunal .
During the appeal proceedings the Assesee representative, Kishor B Phadke argued that Assessee had received the Provisional Approval u/s 80G(5) of the Act vide order dated 19/08/2022 for period from 19/08/2022 to A.Y.2025-2026.
Keyur Patel, the Department representative, supported the order of CIT ( Exemptions ) and argued that the Activities of the Assessee had commenced in 04/03/1974, hence the assessee was liable to make application for Approval under Section 80G of the Income Tax Act to file the present application within six months from the date of provisional approval i.e. on or before 18.02.2023 whereas the present application filed by the assessee on 27.03.2023 i.e. beyond the time limit allowed under clause (iii) of first proviso to section 80G(5) of the Income Tax Act.
The tribunal during the adjudication opinion that the words, “within six months of commencement of its activities” has to be interpreted that it applies for those trusts/institutions which have not started charitable activities at the time of obtaining Provisional registration, and not for those trust/institutions which have already started charitable activities before obtaining Provisional Registration.
Therefore the two-member bench Of Satbeer Singh Godara, ( Judicial Member ) and Dr. Dipak P. Ripote,( Accountant Member ) held that the Assessee Trust had applied for registration within the time allowed under the Act.
Accordingly the bench allowed the appeal filed by the assessee.
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