Six-month Form 10AB filing rule applies only to new trusts; delay-based rejection cannot stand without adverse findings.

The six-month filing requirement for Form No. 10AB from commencement of activities under the proviso to section 80G(5) was held applicable only to newly formed trusts and institutions, not to pre-existing charitable entities already carrying on activities before the provisional registration regime began. A rejection based only on delay, without any adverse finding on genuineness of activities or compliance with statutory conditions, was treated as unsustainable. The delay therefore warranted condonation and the application had to be examined on merits, with the matter restored for fresh consideration in accordance with law.

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Issues: Whether rejection of the application for approval under section 80G solely on the ground of delay was sustainable, and whether the delay in filing Form No. 10AB deserved condonation with the matter to be considered on merits.

Analysis: The assessee had commenced charitable activities much before the grant of provisional approval and before the provisional registration regime came into force. The time limit of filing within six months from commencement of activities was held to be intended for newly constituted trusts and institutions, and not for longstanding trusts already carrying on activities. Applying that requirement to such a trust would produce an unintended and absurd consequence and defeat the object of the amended scheme. As the rejection rested only on limitation and no adverse finding was recorded on genuineness of activities or compliance with statutory conditions, the delay warranted condonation and the application required examination on merits.

Conclusion: The rejection solely on limitation was held to be unsustainable, the delay was condoned, and the matter was restored for fresh consideration in accordance with law.

Final Conclusion: The assessee obtained relief against the limitation-based rejection, and the application was remitted for decision on eligibility and statutory compliance.

Ratio Decidendi: The six-month filing requirement from commencement of activities under the proviso to section 80G(5) applies only to newly formed trusts and cannot be used to reject a pre-existing trust's application solely on that ground when no adverse finding exists on its charitable activities or compliance.

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