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Facts
The assessee trust applied for regular registration under Section 80G(5) after being granted provisional registration. The CIT(Exemptions) rejected the application, filed in Form 10AB on 14.08.2024, as time-barred, noting it was beyond the extended due date of 30.06.2024 set by CBDT Circular No. 7/2024.
Held
The Tribunal noted that procedural lapses should not defeat substantive rights and directed the assessee to seek condonation of delay from the CBDT under Section 119(2)(b) of the Act. Subsequently, the CIT(Exemptions) was directed to consider the application for regular registration on its merits, providing due opportunity of being heard.
Key Issues
Whether the application for regular registration under Section 80G(5) can be rejected solely on the grounds of being time-barred, despite the procedural nature of the delay.
Sections Cited
80G(5), 119(2)(b)
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Income Tax Appellate Tribunal, Hyderabad “B” Bench, Hyderabad
करदाता का प्रतततितित्व/ : None Assessee Represented by राजस्व का प्रतततितित्व/ : Dr. Narendra Kumar Naik, Department Represented by CIT-DR सुिवाई समाप्त होिे की ततति/ : 29.07.2025 Date of Conclusion of Hearing घोषणा की तारीख/ : 06.08.2025 Date of Pronouncement O R D E R प्रतत रवीश सूद, जे.एम./PER RAVISH SOOD, J.M. The present appeal has been filed by the assessee trust is directed against the order passed by the Commissioner of Income Tax (Exemptions) [hereinafter referred to as “CIT(Exemptions)”], Hyderabad, dated 18.02.2025 rejecting the application filed in “Form No. 10AB” for regular registration under Section 80G(5) of the Income-tax Act, 1961 Yug Nirman Yojana Gayatri Pariwar Trust 2 (for short, “the Act”). The assessee trust has assailed the impugned order on the following grounds of appeal before us:
“1. The ld. Commissioner of Income Tax (Exemptions), Hyderabad has erred in law and on facts in rejecting the application for grant of approval under clause (iii) of first proviso to section 80G(5) of the Act.
The CIT (Exemption) has ignored the objective and activities of the society towards charitable objects and ignoring the fact that the provisional registration under Clause (iv) of first proviso to sub-section (5) of section 80G has been granted to the appellant society which is arbitrary and uncalled for.
3. That, the Appellant craves leave and reserves its rights to vary, amend, alter and/or add to the grounds of appeal
and to produce other documentary evidences as may be necessary at the time of hearing of the appeal.
4. That it is prayed, the rejection of 80G order may be deleted in the interest of justice and equity for which the appellant shall as in duty bound ever pray.”
2. Succinctly stated, the assessee trust was granted provisional registration under Section 80G of the Act by the Central Processing Centre (CPC) in “Form No. 10AC” dated 04.04.2022, valid for the period from AY 2022–23 to AY 2024–25.
The assessee trust, filed an application for regular registration under Section 80G of the Act in “Form No. 10AB” on 14.08.2024. During the course of proceedings under Section 80G(5)(iii), the assessee trust in response to notices issued by the CIT(Exemptions), dated 10.10.2024 and 26.12.2024, vide its replies submitted the requisite details/information in response to the queries that were raised by him. Yug Nirman Yojana Gayatri Pariwar Trust 3
However, the CIT(Exemptions) rejected the said application vide order dated 18.02.2025 on the ground that the assessee trust had failed to apply for regular registration within the prescribed time limit. It was observed by him that as per the amended provisions introduced by the Finance Act, 2020, an application in “Form No. 10AB” should be filed at least six months prior to the expiry of the provisional registration or within six months from the commencement of its activities, whichever is earlier.
The CIT(Exemptions) further observed that the CBDT vide Circular No. 7/2024 dated 25.04.2024 had extended the “due date” for filing Form No. 10A/10AB till 30.06.2024. However, as the assessee trust had filed its application in “Form 10AB” on 14.08.2024, therefore, it was time-barred. Accordingly, the CIT(Exemptions) rejected the application filed by the assessee trust for regular registration under Section 80G of the Act on the ground of the delay involved in filing of the same.
Aggrieved, the assessee trust has carried the matter in appeal before us.
The appeal was on the last occasion fixed for hearing on 28.07.2025, and Shri. Santosh Kumar Sabat, CA, the Ld. Authorised Yug Nirman Yojana Gayatri Pariwar Trust 4 Representative (for short, “AR”) for the assessee trust had put up an appearance, and the same was adjourned for today, i.e, 29.07.2025. However, as on date when the matter was called for hearing, neither the Ld. AR has put up an appearance nor any request for adjournment has been filed before us, therefore, we are constrained to proceed with and dispose off the appeal after hearing the respondent revenue and perusing the order of the CIT(Exemption).
Dr. Narendra Kumar Naik, Ld. CIT-DR supported the order of the CIT(Exemptions), and submitted that the time limit prescribed under the law is mandatory in nature, and the CIT(Exemptions) has no discretion to condone the delay in filing of “Form 10AB”.
We have heard the Ld. Departmental Representative and perused the material available on record. Admittedly, the assessee trust was granted provisional registration under Section 80G and had filed “Form 10AB” for regular registration on 14.08.2024. As observed by us hereinabove, the CBDT, vide Circular No. 7/2024 dated 25.04.2024, had extended the “due date” for filing such application till 30.06.2024, therefore, there can be no denying the fact that the application filed by the assessee trust was beyond the prescribed time limit. Yug Nirman Yojana Gayatri Pariwar Trust 5
Although the delay in filing the application for regular registration under Section 80G in “Form 10AB” is procedural in nature, but we are afraid that the provisions of the Act read alongwith the CBDT Circular No. 7/2024 (supra) are clear on the prescribed time limit in so far the filing of an application for regular registration in “Form 10AB” under Section 80G of the Act is concerned. However, we are at the same time of a firm conviction that procedural lapses should not defeat the substantive rights, particularly in matters of charitable trusts seeking exemptions. Although there is no explicit provision under the Income- tax Act or rules for condonation of delay in filing of “Form 10AB” for regular registration under Section 80G of the Act, but the assessee trust remains at liberty to approach the CBDT for condonation under Section 119(2)(b) of the Act. Thereafter, the CIT(Exemptions) is directed to take up and dispose of the application filed by the assessee trust for regular registration under Section 80G of the Act, on merits, in accordance with law, and after providing due opportunity of being heard to the assessee trust. Yug Nirman Yojana Gayatri Pariwar Trust 6
Resultantly, the appeal of the assessee trust is allowed for statistical purposes in terms of our aforesaid observations.
Order pronounced in the Open Court on 06th August, 2025. (श्री मिुसूदन सावडिया) (श्री रवीश सूद) (MADHUSUDAN SAWDIA) (RAVISH SOOD) लेखा सदस्य/ACCOUNTANT MEMBER न्यायिक सदस्य/JUDICIAL MEMBER