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Facts
The assessee, Vijaya Rajam Foundation, applied for regular registration/approval under Section 80G of the Income-tax Act in Form 10AB on 28/09/2024. The CIT (Exemptions) rejected the application, deeming it time-barred based on a CBDT circular extending the deadline to 30/06/2024 and considering the commencement of activities. The assessee contended its application was within time, being six months prior to the expiry of its provisional registration (valid until March 2025).
Held
The Tribunal held that the CIT (Exemptions) erred by applying a CBDT circular meant for AY 2022-23 to an application for AY 2023-24 onwards. It found that the assessee's application filed on 28/09/2024 was within the limitation period (more than six months before the provisional registration expired in March 2025). The Tribunal set aside the rejection order and remanded the matter back to the CIT (Exemptions) for reconsideration on merits.
Key Issues
Whether the application for regular registration under Section 80G was filed within the prescribed period of limitation, considering the date of provisional registration expiry versus commencement of activities and the applicability of CBDT circulars.
Sections Cited
80G, 80G(5)(iii)
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Income Tax Appellate Tribunal, Hyderabad ‘ DB-B ‘ Bench, Hyderabad
Before: Shri Vijay Pal Rao, Vice-Shri Manjunatha, G.
(िनधा�रण वष�/Assessment Year: 2025-26) Vijaya Rajam Foundation Vs. CIT (Exemptions) Hyderabad Hyderabad PAN:AABTV2462Q (Appellant) (Respondent) िनधा��रती �ारा/Assessee by: Shri A.V. Raghuram, Advocate राज� व �ारा/Revenue by:: Shri Narendra Kumar Naik, CIT (DR) सुनवाई की तारीख/Date of hearing: 01/07/2025 घोषणा की तारीख/Pronouncement: 02/07/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President
This appeal filed by the assessee is directed against the order dated 17/03/2025 of the learned CIT (Exemptions), Hyderabad for the A.Y.2025-26.
The assessee has raised the following grounds of appeal:
The learned AR of the assessee has submitted that the learned CIT (Exemption) has treated the application for approval u/s 80G in Form-10AB as beyond the period of limitation. However, the application was within the time limit as made by the Page 2 of 6 assessee before the expiry of 6 months of the provisional registration. He has further submitted that the date of commencement of the activity of the assessee Trust was prior to the grand of provisional registration dated, 22/06/2022 valid from A.Y 2023-24 to 2025-26. Therefore, the limitation for filing of the application in Form-10AB for regular/approval u/s 80G of the Act has to be considered in the context of the expiry of the provisional registration and not in the context of the commencement of the activities of the assessee. Thus, the learned AR has submitted that the application filed by the assessee for regular registration/approval is within the period of limitation and therefore, the learned CIT (Exemption) has wrongly rejected the application on the ground of limitation. In support of his contention, he has relied upon the following decisions: i) ITAT Pune Bench in the case of Shri Kailash Math Trust vs. CIT (E) in dated 5.1.2024 ii) ITAT Jodhpur Bench in the case of Bhamashah Sundarla Daga Charitable Trust vs. CIT (E) in 2023, dated 10/11/2023 iii) ITAT Rajkot Bench in the case of Kabir Kirti Mandir Kashi v. CIT (E) in ITA No.126 & 127/Rjt/2024 dated 17/04/2024
On the other hand, the learned DR has submitted that the assessee has filed the application in Form 10AB on 28/09/2024 which is beyond the extension of limitation by the CBDT vide, circular No.7/2024 dated 25/04/2024 whereby the limitation was extended up to 30/06/2024. Therefore, the application filed by the assessee was beyond the period of limitation as extended by the CBDT as well as 6 months from the Page 3 of 6 date of commencement of the activities. He has relied upon the impugned order of the learned CIT (Exemption).
We have considered the rival contentions and carefully perused the impugned order of the learned CIT (Exemption). The assessee was granted provisional registration/approval in Form 10AC on 22/06/2022 valid from A.Y 2023-24 to A.Y 2025-26. Thereafter, the assessee filed the application in Form 10AB seeking regular approval u/s 80G of the Act on 28/09/2024 which was rejected by the learned CIT (Exemption) as under: “The assessee has filed an e-application in Form No.10AB seeking registration u/s 80G of the Income-Tax act, 1961. 2. Notices dated 03.12.2024 and 17.02.2025 were issued in respect of proceedings u/s 80G(5)(iii) to the address mentioned in the Form 10AB to produce the copy of Memorandum of Association/Trust deed for verification and to furnish a detailed reply on the specific information called for in the said notice. 3. In response to the above notice, the assessee submitted his reply. On perusal of the submissions made by the assessee, it is observed that the CPC has issued provisional registration in form 10AC dated 22.06.2022 valid from AY 2023-24 to AY 2025-26. As per the finance Act, 2020, the assessee should have applied form 10AB for regular registration u/s 80G, at least six months before the expiry of provisional registration or within six months from the date of commencement of activities, whichever is earlier. Further, the CBDT vide circular No. 7 of 2024 dated 25.04.2024 extended the time limit for filing of form 10A/10AB till 30.06.2024. However, the assessee has applied form 10AB for regular registration u/s 80G on 28.09.2024, i.e. beyond the time limit prescribed for filing of form 10AB. 4. Keeping in view of the above, as the assessee has made the application in form 10AB beyond the time limit prescribed, the present application in form 10AB for registration u/s 80G is herewith rejected.”
The learned CIT (Exemption) has given the reasons for treating the application as beyond the time limit extended by the CBDT, vide circular No.7/2024, dated 25/04/2024. It is pertinent to note that the Circular No.7 of 2024 of the CBDT extended the time limit for submitting the application in Form-10AB for the A.Y 2022-23 whereas in the case in hand, the provisional registration was granted from the A.Y 2023-24 to 2025-26. Therefore, the provisional registration was valid up to March, 2025 and the limitation for filing the application in Form-10AB was up to 30/09/2024 i.e. 6 months before the expiry of the provisional registration/approval. The other limitation provided for filing of Form 10-AB was in respect of the date of commencement of the activities of the Trust/Institution which is not relevant for the case of the assessee, due to the simple reason that the activities were already commenced in the case of the assessee prior to the provisional registration. Thus, the limitation extended by the CBDT Circular No.7/2024 is not for the application for approval/registration valid from A.Y 2023-24 onwards but it was for the A.Y 2022-23. By considering these facts as well as the earlier decisions of the Tribunal as relied upon by the assessee, we are of the considered view that the application filed by the assessee for regular approval/registration u/s 80G of the Act on 28/09/2024 is within the limitation, being more than 6 months before the expiry of the provisional registration. Accordingly, in view of the above facts and circumstances, the impugned order of the CIT (Exemption) is set aside and the matter is remanded to the record of the CIT (E) for re-consideration of the application of the assessee for grant of regular registration/approval u/s 80G of Page 5 of 6 the I.T. Act, 1961 on merits by considering all relevant facts, details and record.
In the result, appeal filed by the assessee is allowed for statistical purposes.