CHAROTAR SEVA TRUST VASAD,ANAND vs. THE CIT (EXEMPTION), AHMEDABAD

The application for approval of the Trust under clause (iii) of first Proviso to Sub-Section (5) of Section 80G of the Income Tax Act, 1961 was filed by the assessee in Form No.10AB electronically. The ld. CIT(Exemption) observed that the assessee had got provisional approval u/s 80G(5) of the Act and, therefore, was required to file application in Form 10AB within the time period of at least six months prior to the expiry of the period of provisional approval or within six months of commencement of its activities, whichever was earlier. The CIT(Exemption) noticed that the assessee trust was incorporated on 23/12/2020 and provisional approval was issued to the trust on 31/05/2021. As the present application was filed belatedly by the assessee, the CIT (Exemption) issued notice on 23/11/2023 calling for an explanation of the assessee in this regard. In reply dated 08/12/2023 the assessee had submitted that the activities of the trust were started on 19/03/2021 but no explanation for the delay in filing the present application was given. The CIT(Exemption) has observed that the applicant trust was required to file the application in Form 10AB on or before 30/09/2022. As the present application for approval under Section 80G(5) of the Act was filed belatedly, the same was rejected by the ld. CIT(Exemption) as non-maintainable and the provisional approval granted earlier was also cancelled.

We have considered the submission of the assessee. The approval u/s. 80G(5)(iii) of the Act was denied for the reason that the application was not filed within the due date. Subsequently, the delay in filing the application was condoned and the approval was granted to the assessee. Therefore, the assessee has sought permission to withdraw the present appeal.

In view of above facts, the present appeal is dismissed as withdrawn.