SRI BALBHEEMASENA GOWSEVA TRUST,RAWALAPALLY vs. CIT (EXEMPTION), HYDERABAD

PER MANJUNATHA G. :

The above appeals are filed by the Assessee Trust against the separate orders dated
13.03.2025
and 17.03.2025 of the learned Commissioner of Income Tax
(Exemptions), Hyderabad, in rejecting the application filed by the assessee in Form 10AB seeking for registration u/sec.12AB and 80G of the Income Tax Act, 1961 [in short
“the Act”], respectively, relating to assessment year 2025-

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verification and also to furnish a detailed reply on the specific information called for in the said notice in respect of application filed seeking for registration u/sec.12AB of the Income Tax Act, 1961 and similar information was sought by issuing notices dated 03.12.2024 and 17.02.2025 for registration u/sec.80G of the Income Tax Act, 1961. In response to the said notices, the assessee trust has furnished relevant information as called-for. However, the learned CIT(A) noted that, the application made by the assessee was beyond the time limit and therefore, rejected the applications filed by the assessee seeking for registration u/sec.12AB and u/sec.80G of the Income Tax
Act, 1961, without appreciating the documentary evidences filed by the assessee. He, therefore, submitted that, one more opportunity of hearing needs to be provided to the assessee by setting aside the order of the learned CIT(E) and remit the issue back to the learned CIT(E) with a direction to reconsider the issue afresh, by providing reasonable opportunity to hearing to the assessee.

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per the provisions of sec.12A(1)(ac)(ii) and 80G(5)(iv) of the Income Tax Act, 1961, the appellant is supposed to file application in Form 10AB seeking for permanent registration u/sec.12AB and 80G of the Act, atleast six months before the expiry of the provisional registration or within six months from the date of commencement of the activities, whichever is earlier. In the present case, the assessee has filed application in Form 10AB on 12.09.2024 for regular registration u/sec.12AB and on 17.09.2024 for registration u/sec.80G of the Act, which is beyond the due date provided under the Act i.e., within six months from the date of commencement of the activities. However, the application filed by the assessee is atleast six months before the expiry of the provisional registration. The assessee claimed that, since it has already commenced it’s activities before provisional registration, it can only file application atleast six months before expiry of provisional registration. 6. We find that, the law has been amended in the case of trusts for procedure of registration and the same has been amended from time to time which is caused confusion

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in the minds of the public about the classification of Trust/Institution. Although, the CBDT has issued Circulars from time to time and explained the procedure to be followed for obtaining registration, but, there is an ambiguity in law, which is difficult to understand by any layman. Therefore, in our considered view, when the assessee has filed it’s application for permanent registration atleast before six months from the expiry of provisional registration, the learned CIT(E) ought to have consider the application filed by the assessee on merits, when the assessee claims to have filed relevant evidences to prove carrying-out charitable activities in accordance with it’s objects. Therefore, considering the facts and circumstances of the case and also the fact that, the learned CIT(E) has rejected the application filed by the assessee in a routine manner without even considering basic facts and also on merits, in our considered view, the issue needs to be set- aside to the file of learned CIT(E) to give another opportunity of hearing to the appellant-trust. Thus, we set-aside the orders passed by the learned CIT(E) in rejecting the 7
ITA.Nos.809 & 810/Hyd./2025

application filed in Form 10AB seeking registration u/sec.12AB and u/sec.80G of the Income Tax Act, 1961
and restore the issues back to the file of learned CIT(E) for fresh consideration. The learned CIT(E) is directed to consider the applications filed by the appellant-trust for registration on merits, after considering relevant details submitted by the appellant-trust to justify it’s case.
7. In the result, both the appeals of the assessee are allowed for statistical purposes. A copy of this common order be placed in the respective case files.
Order pronounced in the open Court on 28.07.2025. [VIJAY PAL RAO]

[MANJUNATHA G]
VICE PRESIDENT

ACCOUNTANT MEMBER
Hyderabad, Dated 28th July, 2025
VBP
Copy to 1. Sri Balbheemasena Gowseva Trust, H.No.6-7A41, Near
Bheemarayuni Gudi, KODANGAL (M), VIKARABAD.
PIN – 509 336. Telangana.