PEOPLES PROGRESS TRUST,HYDERABAD vs. CIT(EXEMPTIONS), HYDERABD

प्रतत रवीश सूद, जे.एम./PER RAVISH SOOD, J.M.
The present appeal has been filed by the assessee trust against the order passed by the Commissioner of Income Tax (Exemptions)
[hereinafter referred to as “CIT(Exemptions)”], dated 17.03.2025
rejecting the application filed in “Form No. 10AB” for regular registration under Section 80G(5) of the Income-tax Act, 1961 (for short, “the Act”).
Peoples Progress Trust, Hyderabad.
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The assessee trust has assailed the impugned order on the following grounds of appeal before us:
“Ground 1. The Rejection order dated 17-03-2025 in Form 10AD of the Income-tax
Act, 1961 is erroneous and contrary to law and facts of the case and devoid of any merit.
Ground 2. The CIT(E), Hyderabad failed to note that the amendments in Finance
Act 2020 were introduced to simplify the procedure of registration of charitable trusts/Institutions and the amendments cannot be interpreted in a way that is prejudicial to the Trust/Institutions.
Ground 3. The CIT(E), Hyderabad failed to issue show cause notice and provide opportunity of being heard regarding delay in filing the application before rejecting it and thereby violating principles of natural justice.
Ground 4. The CIT(E), Hyderabad failed to note that, the appellant is an existing trust that had already commenced its activities before obtaining provisional registration. The timelines for commencement of activities under the new regime do not apply to existing trusts that began operations prior to 1st April 2021. The timelines for filing Form 10AB should be based on the expiry of provisional registration i.e., 30th
September 2024 and not the commencement of activities. In this regard reference can be drawn from case law: "Bhamashah Sundarlal Daga Charitable Trust Vs. The Commissioner of Income tax - Exemptions, Jaipur”.
Ground 5. The CIT(E), Hyderabad also failed to note that commencement of activities applies for those trusts/Institutions which are newly formed as per new regime and not yet started charitable activities at the time of obtaining provisional registration.
Ground 6. The CIT(E), Hyderabad failed to note that there is no specific violation by the appellant and complied with all other requirements/conditions for obtaining registration under section 80G(5)(iii) of the Act.
Ground 7. For the above and such other grounds that may be raised at the time of hearing, it is respectfully submitted that the appeal be allowed and suitable directions be given to the CIT(E), Hyderabad to allow the claim of the Appellant.”
Peoples Progress Trust, Hyderabad.
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