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Facts
Muslim Educational Trust, a charitable trust registered u/s 12AB, applied for regular approval u/s 80G in Form 10AB after receiving provisional approval u/s 12A(1)(ac)(ii). The Commissioner of Income Tax (Exemption) rejected the application, citing belated filing beyond the statutory period.
Held
The Tribunal observed that the rejection was solely due to belated filing, but the impugned order lacked any finding regarding the commencement date of the trust's activities. Since the filing deadline under Section 80G proviso is linked to the commencement of activities, the matter was remanded to the CIT(A) for de novo consideration to determine this crucial date.
Key Issues
Whether the application for regular approval under Section 80G was validly rejected for belated filing when the order did not determine the date of commencement of the trust's activities.
Sections Cited
80G, 12AB, 12A(1)(ac)(ii), 10AB, 10AC
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Income Tax Appellate Tribunal, COCHIN BENCH
O R D E R This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Exemption), Kochi dated 24.09.2025 for Assessment Year (AY) 2024-25 denying grant of approval u/s. 80G of Income Tax Act, 1961 (hereinafter "the Act").
Brief facts of the case are that the appellant is a charitable trust duly registered u/s. 12AB of the Act. The appellant had filed an application in Form 10AB on 09.03.2025 seeking approval u/s. 89G of the Act. The provisional approval under clause (ii) of clause (ac) of subsection (1) of section 12A in form 10AC was granted on 29.05.2023. The appellant had filed an application in Form 10AB seeking regular approval. However, the said application was rejected Muslim Educational Trust vide impugned order by the Commissioner of Income Tax (Exemption) on the ground that the application was not filed within 6 months from the date of commencement of activities or expiry of the provisional registration.
Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.
I heard the rival contentions and perused the material available on record. On a careful perusal of the impugned order it would reveal that the application was filed u/s. 10AB seeking approval u/s. 80G of the Act was rejected by the learned Commissioner of Income Tax (Exemption) solely on the ground that the application was filed belatedly and beyond the extended time, i.e. 20.06.2024. The proviso to clause (ix) of subsection (v) of section 80G provided that the application shall be filed within 6 months prior to the expiry of provisional approval or within 6 months from commencement of its activities, whichever is earlier. The impugned order is silent as to when the appellant had commenced the activities. There is no finding by the Commissioner of Income Tax (Exemption) as to when the activities of the trust were commenced. Therefore, the matter is remanded back to the file of CIT(A) for de novo consideration.
In the result, the appeal filed by the assessee stands partly allowed for statistical purposes.