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Facts
The assessee trust, provisionally registered under Section 80G, applied for regular registration in Form 10AB on 30.09.2024. The CIT(Exemptions) rejected this application because it was filed after the prescribed due date of 30.06.2024, as extended by CBDT Circular No. 7/2024.
Held
The tribunal held that while the delay in filing was procedural and should not defeat substantive rights. It directed the assessee to approach the CBDT for condonation of delay under Section 119(2)(b), after which the CIT(Exemptions) is to dispose of the application for regular registration on merits after providing due opportunity of being heard.
Key Issues
Whether the rejection of the application for regular registration under Section 80G due to late filing of Form 10AB was justified, and if the delay can be condoned.
Sections Cited
80G, 80G(5), 80G(5)(iii), 119(2)(b)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Hyderabad ‘ A ‘ Bench, Hyderabad
करदाता का प्रतततितित्व/ : Shri P. Vinod, Advocate Assessee Represented by राजस्व का प्रतततितित्व/ : Dr. B. Bala Krishna, CIT-DR Department Represented by सुिवाई समाप्त होिे की ततति/ : 17.07.2025 Date of Conclusion of Hearing घोषणा की तारीख/ : 25.07.2025 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 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. 2 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. 3
Succinctly stated, the assessee is a trust registered with the