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Dohit Muranjan

The Tribunal has the power to condone the delay in filing application for final approval under clause (iii) of first proviso to section 80G(5): ITAT

Updated: May 5


Citation: Swachh Vapi Mission Trust v. CIT(E) - 80G Registration

ITAT: Surat

ITA no.: 583/SRT/2023

Date of order: 11.3.2024


Brief facts


  • The assessee trust was incorporated on 15.3.2021 and was granted provisional registration under section 80G(5) on 6.4.2022.

  • The assessee filed an application for approval under clause (iii) of first proviso section 80G(5) in Form 10AB on 2.12.2022.

  • The law requires the assessee to file application for final approval within the time period of at least six months prior to expiry of period of the provisional approval or within six months of commencement of its activities, whichever is earlier.

  • Vide circular no. 8/2022 CBDT had extended the time limit to file the said application to 30.9.2022; however, the assessee filed it on 2.12.2022.

  • Hence, the CIT(E) rejected the application.

Observations of the Tribunal


The Tribunal made the following observations:

  1. There had been a delay in filing the application by the assessee

  2. The CIT(E) had rejected the application since he had no power to condone the delay

  3. A similar issue had already been dealt by the Surat Tribunal in Vananchal Kelvani Trust v. CIT(E), ITA No.728/SRT/2023 which held that the the Tribunal was the final fact finding authority, and based on the assessee’s facts and undue hardship created by the clause (iii) of proviso of section 80G(5) of the Act, the Tribunal had the power to condone the delay in filing the Form No.10AB, u/s 80G(5).

 

Hence, following the order of the Co-ordinate Bench in the case of Vananchal Kelavani Trust vs. CIT(E), the Tribunal condoned the delay and remitted the matter back to CIT(E) to adjudicate the issue afresh on merits.

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