2026 (2) TMI 622

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....-tax Act, 1961 [hereinafter referred to as "the Act"]was rejected. 2. The brief facts of the case are that the assessee trust filed an application in Form No. 10AB on 01.03.2025 under clause (iii) of the first proviso to section 80G(5) seeking regular approval under section 80G. The assessee had earlier been granted provisional approval in Form No. 10AC dated 31.08.2021, which was valid up to Assessment Year 2024-25. 3. The CIT(E) observed that as per clause (iii) of the first proviso to section 80G(5), where an institution has been provisionally approved, the application for regular approval is required to be filed at least six months prior to expiry of provisional approval or within six months of commencement of activities, whicheve....

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....egistration was for 5 to 10 years. * The provisional registration scheme was introduced for the first time from 01.04.2021 (by Finance Act 2020). Thus, this was a new scheme under which the Trust applied for registration for the first time. Further, this was the first time that the Trustees were applying for renewal of registration. * The Trust is satisfying all other legal compliances and is filing Form 10BB every year. 3) The assessee prays that the approval u/s 80G of the Act be granted to the assessee Trust. 4) The assessee craves leave to add, delete, amend or alter the above grounds. 5. The learned Authorized Representative, placed on record the fact sheet and submitted that the activities of the....

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..... 8. The learned Departmental Representative strongly relied upon the order of the CIT(E) and submitted that irrespective of the extensions granted by the CBDT, the assessee failed to apply within the prescribed time. It was contended that approval under section 80G is a conditional statutory benefit and strict compliance with timelines is mandatory. The learned DR thus supported the rejection of the application on the ground of limitation. 9. We have considered the rival submissions and perused the material available on record. It is an admitted position that the assessee trust commenced its activities on 01.02.2016, whereas the provisional approval under section 80G was granted on 31.08.2021. Thus, the commencement of activities cle....

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....etation of the phrase "within six months of commencement of activities" so as to apply it to long-standing trusts would lead to an absurd and unintended consequence, namely that such trusts would be permanently barred from seeking approval under section 80G, which could never have been the legislative intent. Such an interpretation would render the statutory scheme unworkable and defeat the object of the amendments introduced to simplify and streamline the registration process. 13. Applying the above settled principles, it has been consistently held that where the assessee trust had commenced its activities much prior to the grant of provisional approval and prior to the introduction of the provisional registration regime with effect fro....