Peoples Progress Trust Vs CIT (Exemptions) (ITAT Hyderabad)
The appeal was filed by the assessee trust against the order dated 17.03.2025 passed by the Commissioner of Income Tax (Exemptions) [CIT(E)] rejecting its application in Form No. 10AB for regular registration under Section 80G(5) of the Income-tax Act, 1961. The trust challenged the rejection on several grounds, including that the order was contrary to law and facts, that the amendments introduced by the Finance Act, 2020 were intended to simplify the registration process for charitable trusts and should not be interpreted adversely, and that the CIT(E) rejected the application without issuing a show-cause notice or providing an opportunity of being heard, thereby violating the principles of natural justice. The trust further contended that it was an existing trust registered on 19.07.1995 and had commenced its charitable activities long before obtaining provisional registration. It argued that the timelines relating to commencement of activities applied only to newly formed trusts and that the due date for filing Form No. 10AB should be determined with reference to the expiry of its provisional registration rather than the commencement of its activities. It also submitted that it had complied with all other statutory conditions for obtaining registration under Section 80G(5)(iii).
