GAUD BRAHMAN SABHA,MUMBAI vs. CIT (EXEMPTION), MUMBAI

ITA 3256/MUM/2025Status: DisposedITAT Mumbai18 July 2025AY 2024-258 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee's appeal is allowed. Regarding the timeliness of the application for Section 80G approval, the Tribunal noted that the assessee obtained provisional approval on June 15, 2023. For existing trusts like the assessee, the date of provisional approval is crucial, not the date of commencement of activities. The Tribunal referred to CBDT Circular No. 7 of 2024, which extended the time to file Form 10AB. It found that the assessee was required to file Form 10AB on or before December 31, 2024, based on the first limb of the second proviso to Section 80G(5)(iii), which states that an application should be filed at least six months prior to the expiry of the provisional approval. Since the assessee filed the application on September 24, 2024, it was well within the due date. The Tribunal concluded that the second limb of the proviso, dealing with the commencement of activities, was not applicable to the assessee's case. Consequently, the issue was remitted back to the CIT(Exemption) to consider the claim on its merits after providing the assessee a proper opportunity of being heard. The Tribunal did not explicitly decide on the issue of violation of Section 13(1)(b) and clause (d) of the explanation to Section 12AB(4), as it remitted the matter for fresh consideration.

What were the facts?

The assessee, Gaud Brahman Sabha, a charitable trust formed in 1897 and registered under Section 12A since 1974, applied for registration under Section 80G. It had obtained provisional registration under Section 80G(5)(iv) on June 15, 2023, valid from Assessment Year 2024-25 to 2026-27. The assessee filed an application for regularization under Section 80G(5)(iii) on September 24, 2024. The Commissioner of Income Tax (Exemption) rejected the application, citing that it was filed beyond the prescribed time limit of December 2023, as per the proviso to Section 80G(5)(iii). The CIT(E) also noted potential violations of Section 13(1)(b) and clause (d) of the explanation to Section 12AB(4) regarding activities favouring a particular community. The assessee appealed this order to the Income Tax Appellate Tribunal (ITAT).

What were the issues?

1. Whether the application for regularization of Section 80G approval, filed on September 24, 2024, was within the prescribed time limit under Section 80G(5)(iii) of the Income Tax Act, considering the assessee had obtained provisional approval on June 15, 2023, and was an existing trust formed in 1897. - Assessee's contention: The proviso to Section 80G(5)(iii) applies to newly formed trusts. For existing trusts like itself, the relevant timeline is six months prior to the expiry of provisional approval (i.e., by December 31, 2024), making its September 24, 2024 application timely. It relied on various ITAT decisions including R.L. Education Sanstha v. CIT (Exemption) and Saaksh Foundation v. CIT (Exemption). - Revenue's contention: The application was rejected as it was filed beyond the prescribed time limit of December 2023, as per the proviso to Section 80G(5)(iii). 2. Whether the activities of the assessee trust, which are stated to be for promoting the development of the Kudaldeshkar Gaud Brahmin community, violate Section 13(1)(b) and clause (d) of the explanation to Section 12AB(4) of the Income Tax Act. - Assessee's contention: Not explicitly recorded, but implied by the grounds of appeal and submissions regarding the nature of its activities. - Revenue's contention: The trust's activities favouring a particular religious community violate Section 13(1)(b) and clause (d) of the explanation to Section 12AB(4).

Which sections of the Income-tax Act were involved?

Section 80G,Section 12A,Section 13(1)(b),Section 12AB(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SMT. BEENA PILLAI & SHRI GIRISH AGRAWAL

For Appellant: Shri Anand Desai & Sachin Lopes
For Respondent: Shri Arun Kanti Datta, CIT D.R.
Pronounced: 01.07.2025

Per: Smt. Beena Pillai, J.M.: The present appeal filed by the assessee arises out of order dated 20/03/2025 passed by CIT (Exemptions), Mumbai for assessment year 2024-25 on following grounds of appeal : “1) The Appellant Trust was formed in 1897 and registered with the Charity Commissioner Office since 1953. The Appellant Trust is registered with the Income Tax department since 1974 u/s 12A. The trust sought registration under the new Income Tax Rules since 2021. The Ld. CIT(E) has erred in cancelling the provisional registration granted to the Appellant Trust u/s 80G(5)(iv) dated

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 80G

All 6,482 judgments and leading authorities on Section 80G →

Recent GST High Court judgments

Search GST case law →