The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) dismissed an appeal as withdrawn after the delay in filing the application for approval under Section 80G(5)(iii) of the Income Tax Act, 1961 was condoned, and the approval was subsequently granted.
Charotar Seva Trust Vasad,appellant-assessee,filed an application for approval under section 80G(5)(iii) of the Act, in Form 10AB. The Commissioner of Income Tax (Exemption) [CIT(E)] noted that the assessee had received provisional approval under section 80G(5) and was required to submit the application at least six months before the approval expired or six months after starting its activities, whichever was earlier.
The trust was incorporated on 23/12/2020, and provisional approval was granted on 31/05/2021. Since the application was filed late, the CIT(E) issued a notice on 23/11/2023 asking for an explanation.
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In the reply, the assessee stated that its activities began on 19/03/2021 but did not explain the delay in filing the application. The CIT(E) found the application should have been filed by 30/09/2022. As it was filed late, the application was rejected, and the provisional approval was cancelled.
The assessee’s counsel, informed during the hearing that the assessee wished to withdraw the appeal. A letter was filed stating that after the appeal was filed, the assessee was granted registration under section 80G(5) of the Act, with the delay in filing the form condoned. The assessee requested permission to withdraw the appeal, and the Revenue had no objection.
The two member bench comprising T.R Senthil Kumar ( Judicial Member ) and Narendra Prasad Sinha ( Accountant Member ) reviewed the submission of the assessee. The approval under section 80G(5)(iii) of the Act was denied initially because the application was filed late. However, the delay was later condoned, and the approval was granted. As a result, the assessee requested to withdraw the appeal.
In short,the appeal filed by the assessee was dismissed as withdrawn.
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