The Court dismissed the petition in absence of questions of law for consideration

In a recent case, the Calcutta High Court upheld the decision of Income Tax Appellate Tribunal ( Tribunal ) that the assessee can apply for registration under section 80g(5)(iii) of the Income Tax Act, 1961 after commencement of  activity. The revenue filed petition under Section 260A of the Income Tax Act, 1961 ( the Act ) is challenging the order dated 13th September, 2023 passed by the Income Tax Appellate Tribunal in favour of respondent assessee, West Bengal Welfare Society. Get a Copy of Income Tax Act, Click here  Ms. Smita Das De, appeared  for the appellant and Mr. Abhratosh Majumder appeared for the respondent/assessee. The short question which falls for consideration is whether the Tribunal was justified in allowing the assessee’s appeal and directing registration to be granted under Section 80G(5) of the Act and thereby setting aside the order passed by the Commissioner of Income tax ( Customs ), Kolkata, [ C.I.T (Customs) ] dated 27th June, 2023. The Tribunal has restored the matter to the C.I.T ( Customs ) for a decision afresh on merits of the application filed for filing registration under Section 12A of the Act. On such remand being made to the authority, now the respondent assessee has been granted 12-year registration. Get a Copy of Income Tax Act, Click here Considering the recent Circular issued by the Central Board of Direct Tax being Circular No.7 of 2024, dated 25.4.2024, extending the due date for filing Form 10A and 10AB of the Act. In Clause 4.1 of the said Circular, it has been stated, in case where any trust, institution or fund has already made an application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish a fresh application in Form No. 10AB within the extended time provided in paragraph 3(ii) i.e. 30.06.2024. The Tribunal has found that assessee was granted provisional approval on 30th November, 2022; the assessee applied for final registration under clause (iii) of first proviso to Section 80G(5) of the Act. Therefore, the Tribunal held that the proviso is to be read that after the grant of provisional registration, if the assessee has not commenced its activities, he may apply for registration within six months of the commencement of this activity or within six months prior to the expiry of the period of provisional approval, whichever is earlier. Get a Copy of Income Tax Act, Click here The division bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya found that the Tribunal rightly noted that in any case the assessee is eligible to apply for final registration only after grant of provisional approval. The Court dismissed the petition in absence of questions of law for consideration.