2025 (11) TMI 1238

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... registration under Section 80G(5) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") and cancelling the provisional approval earlier granted in Form No. 10AC. 2. Facts of the Case 2.1 The assessee is a registered charitable trust engaged in activities of relief to the poor, education, and general public utility. The assessee was granted provisional registration under section 80G(5) vide Form No. 10AC dated 04.11.2021. The trust was required to apply for conversion of provisional approval to final registration in Form No. 10AB within the time prescribed under clause (ii) of the first proviso to section 80G(5). The CBDT, vide Circular No. 7/2024 dated 25.04.2024, extended the due date for filing such Form 10AB up to 30.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and also cancelled the provisional registration u/s 80G(5) issued in Form 10AC, without appreciating that the appellant trust was duly eligible for such registration. - That the unintentional or bona fide mistake was made in filing the form with wrong selection of section in online submission of the Form No. 10AB, dated 12-04-2024. The appellant trust had already acted in good faith by filing its application originally [on 12-04-2024] within the extended deadline of 30-06-2024, as notified vide CBDT Circular No. 7/2024, albeit under the wrong clause. The learned CIT(e) rejected the application only on this ground that the application is not in made under proper section. - The appellant filed a fresh / corrected applicatio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....7/2024, which clarified that such cases of rejection on "delay or wrong section" are to be covered under the extended time limit. The AR, therefore, prayed that the impugned order be set aside and the CIT(E) be directed to consider the application on merits after treating it as filed within time and restoring the provisional registration. 4. The learned Departmental Representative (DR) supported the order of the CIT(E). However, the DR did not seriously object to the alternative plea of the assessee for restoration of the matter to the file of the CIT(E) for fresh consideration on merits, in accordance with law, and subject to verification of factual compliance. 5. We have carefully considered the rival submissions, perused the orders....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s filed within the prescribed period. 5.5 The CIT(E) has not doubted the genuineness of the trust's activities nor examined its objects. Therefore, the rejection of the application and the consequential cancellation of Form 10AC approval, without any finding on merits, cannot be sustained in law. 5.6 In view of the foregoing discussion, and applying the principle of substance over form, we hold that the learned CIT(E), was not justified in rejecting the assessee's Form 10AB application and cancelling the provisional approval. 5.7 Accordingly, the impugned order is set aside, and the matter is restored to the file of the learned CIT(E) with the following specific directions: i. The learned CIT(E) shall treat the assessee's ....