Trust gets second chance for 80G registration after belated Form 10AB filing under CBDT Circular 6/2023

ITAT Ahmedabad allowed the appeal where CIT(E) denied final registration under section 80G due to belated filing of Form 10AB. The assessee trust, having provisional registration from October 2021, filed the application on February 28, 2023, claiming unawareness of the six-month deadline requirement. ITAT held that CBDT Circular 6/2023 extended the deadline to September 30, 2023, and permitted fresh applications even for previously rejected cases. The tribunal found CIT(E) failed to consider this circular provision and directed reconsideration of the application with proper hearing opportunity.

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Issues involved:
The appeal against rejection of registration under section 80G of the Income Tax Act, 1961.

Summary:
Issue 1: Rejection of registration under section 80G
The assessee, a trust formed for animal welfare and helping the needy, had its application for final registration under section 80G rejected by the CIT(E) due to filing beyond the prescribed time limit. The assessee appealed, arguing for approval based on bonafide reasons and citing lack of understanding between provisional and final registration. The counsel for the assessee presented affidavits explaining the delay and sought condonation. The Revenue opposed, emphasizing the strict time limit under the Act. The Tribunal noted the trust's misunderstanding, the CBDT circulars extending time limits, and the failure of the CIT(E) to consider a relevant circular. Consequently, the impugned order was set aside, directing a reconsideration of the application for final registration under section 80G.

Separate Judgement:
None.

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