The Surat Bench of the Income Tax Appellate Tribunal (ITAT) recently granted relief to an Appellant, approving the delay in application for approval of fund from the date of commencement of activities of the Assessee-trust, in terms of Circular No.7/2024 issued by the Central Board of Direct Taxes (CBDT).
An Income Tax Appeal filed by Khidmat-E-Khalq Charitable Trust against the Commissioner of Income Taxes (Exemptions) ( CIT(E) ); the Assessee sought to impugn an order passed by the CIT(E) rejecting application for approval under Section 80G(5). The application was rejected by the CIT(E) on the grounds that the activities of the assessee-trust commenced on 17.09.2020, requiring them to file application in Form-10AB on or before 30.09.2020 as per the directives of CBDT Circular No.6/2023.
Following a prayer for condonation of delay in the present matter before the ITAT, Advocate Yogesh B. Shah, appearing for the Appellant, submitted that the Assessee’s case is squarely covered by the provisions of CBDT Circular No.7/2024 and that the application may be restored to the file of the CIT(E) for meritorious reconsideration.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
Departmental Representative, Ravi Kant Gupta contested the submissions, seeking to uphold the CIT(E) Order.
The two-member Bench of Pawan Singh, Judicial Member and Bijayananda Pruseth, Accountant Member at the outset condoned the delay, and observed that the Appellant’s application had been rejected by the CIT(E) on the ground that the Appellant had filed application for approval of fund on 30.09.2023 while being required to do so by 30.09.2022.
Observing that the recent Circular No. 7/2024 had extended the time for filing application for approval under Section 80G(5) up to 30.06.2024, the Assessee is eligible to avail the benefit of extended time period for filing application.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
In light of the observations, the Surat ITAT restored the application back to the file of the CIT(E), directing the Commissioner to reconsider the application in terms of Circular No. 7/2024 after providing opportunity for hearing and to file additional submissions or evidences, if any.
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