The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has directed the Commissioner of Income Tax (Exemption) to process the trust’s new Form 10AB application, extending the deadline for filing Form 10AB for approval under Section 80G(5) of the Income Tax Act, 1961, until June 30, 2024, despite a delay of 331 days in filing the appeal.
The appeal under review was filed by the assessee, Manas Yog Seva Trust, challenging the order dated March 22, 2023, issued by the Commissioner of Income Tax (Exemption), Ahmedabad. The order had denied the final registration under Section 80G (5) of the Income Tax Act, 1961.
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This was the fourth hearing of the appeal. On this occasion, no representative appeared on behalf of the Assessee. Although a Letter of Authority was in place for C.A. Chintan A. Thakkar had failed to appear for the previous hearings as well. Additionally, the appeal was filed with a delay of 331 days. The application for condonation of delay was not submitted on proper stamp paper or by way of an affidavit.
Mr. Sudhendu Das, representing the revenue, confirmed that the Assessee had indeed filed a fresh application in Form 10AB on April 30, 2024, seeking approval under Section 80G(5) of the Income Tax Act.
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The contributions that one makes towards some charitable institutions or relief funds are claimed as deduction under Section 80G of the Income Tax Act. However, all the donations do not qualify the category of deductions under Section 80G. The donations that are made towards certain mentioned funds qualify the category of deduction.
The tribunal requested the Departmental Representative (D.R) to verify whether the Assessee Trust had submitted a new application following the CBDT Circular No. 7 of 2024 dated April 25, 2024, which extended the deadline for filing Form 10AB for approval under Section 80G(5) until June 30, 2024.
The two-member bench of the Tribunal, consisting of Narendra Prasad Sinha (Accountant Member) and T.R. Senthi Kumar (Judicial Member), observed the submissions made. Consequently, the Tribunal dismissed the present appeal and directed the CIT (E) to process the application filed on April 30, 2024, in Form 10AB in accordance with the law.
The appeal filed by the Assessee was dismissed, with the direction for the CIT (E) to address the fresh application as per legal provisions.
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