Income Tax : S.80G of Income-tax Act, 1961 and Registration

Income Tax : S.80G of Income-tax Act, 1961 and Registration

It is pertinent to note that the Circular No.7 of 2024 of the CBDT extended the time limit for submitting the application in Form-10AB for the A.Y 2022-23 whereas in the case in hand, the provisional registration was granted from the A.Y 2023-24 to 2025-26. Therefore, the provisional registration was valid up to March, 2025 and the limitation for filing the application in Form-10AB was up to 30/09/2024 i.e. 6 months before the expiry of the provisional registration/approval. The other limitation provided for filing of Form 10-AB was in respect of the date of commencement of the activities of the Trust/Institution which is not relevant for the case of the assessee, due to the simple reason that the activities were already commenced in the case of the assessee prior to the provisional registration. Thus, the limitation extended by the CBDT Circular No.7/2024 is not for the application for approval/registration valid from A.Y 2023-24 onwards but it was for the A.Y 2022-23.

In the case in hand, the assessee has stated in the reply filed before the CIT (E) that the assessee Trust commenced its charitable activity with effect from the date of its registration i.e. 22/06/2016 and therefore, when the activities of the assessee were commenced prior to the provisional registration granted on 22/06/2022, then the limitation reckoned from the commencement of the activity becomes irrelevant.

Citation : *KMV Foundation v. CIT (E) [2025] GCtR 1317 (ITAT, Hyderabad)*