KISSEN DAYAL RAMESWAR CHARITY TRUST,KOLKATA vs. CIT (EXMPTION) , KOLKATA

For that on the facts and in the circumstances of the case, the order passed the Ld. CIT(Exmption), Kolkata dated 23.08.2025 is arbitrary, bad in law, and liable to be quashed.

For that on the facts and in the circumstances of the case, the Ld. CIT(Exmption), Kolkata was not justified in rejecting the application for grant of approval u/s 80G(5)(iii) filed by the assessee trust in Form No. 10AB.

That the appellant craves leave to add, alter or delete all or any of the grounds of appeal."

Brief facts of the case are that assessee was granted provisional approval u/s 80G(5)(iv) of the Act on 28.05.2021. Subsequently, the assessee had filed an application for approval u/s 80G(5)(iii) of the Act in Form No. 10AB on 29.03.2025. A notice was issued by the Ld. CIT(E) to the assessee on 08.07.2025 requesting details of the activities carried out. The assessee furnished the requested details on 15.07.2025. Upon examination of the income and expenditure accounts for the year ended 31.03.2022, it was found that the assessee had incurred expenses on account of charity and donation amounting to ₹20,06,680/- during FY 2021-22, which established that the activities of the Trust had already commenced. The Ld. CIT (Exemption) observed that the extended due date for filing the application in Form No. 10AB was 30.06.2024 as per CBDT Circular No. 07/2024 dated 25.04.2024, and the assessee had failed to file it within the stipulated time limit. He held that the time limit prescribed u/s 80G(5)(iii) of the Act is mandatory and there is no power to condone the delay in filing the application. Since the application was not filed within the prescribed time limit of six months from the commencement of activities or prior to the expiry of the provisional approval, it was held to be non-maintainable. Accordingly, the Ld. CIT (Exemption) rejected the application of the assessee and cancelled the provisional approval of the assessee.

Aggrieved with the order of the Ld. CIT (Exemption), the assessee has filed the appeal before the Tribunal.

Rival contentions were heard and the submissions made have been examined.

We have considered the submissions made, gone through the facts of the case and perused the record and the order of the Ld. CIT (Exemption). The Bench noted that it was an old Trust, and therefore, the application for approval filed initially ought to have been filed u/s 80G(5)(iv) of the Act as an old Trust under clause (i) of the proviso thereof, which mandates that the approval would be granted for a period of five years. Inadvertently, the application was filed as a new Trust and since the Trust was in existence since 1964, therefore, this created a paradoxical situation as the application for final approval could not have been filed within six months of the commencement of the activities as per the amended provisions for grant of approval. Therefore, we hereby set aside the order of the Ld. CIT (Exemptions) and direct that the application filed initially may be treated as filed under clause (i) of the proviso which is applicable for the old trust as the assessee was not a new trust and thereafter, the approval as per the law should be granted. Hence, all the Grounds of appeal are partly allowed for statistical purpose.

In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 20th July, 2026. [Yogesh Kumar US] [Rakesh Mishra] Judicial Member Accountant Member Dated: 20.07.2026 Bidhan (Sr. P.S.)

CIT-

CIT(DR), Kolkata Benches, Kolkata.

Guard File. //// By order