The Pyramid Spiritual Trust (Hyderabad) Vs The ITO (Exemptions) (ITAT, Hyderabad)
One Unserved 80G Order Cannot Topple the Entire Pyramid: ITAT Condones 2,336-Day Delay, Revives Registration &; Knocks Down Consequential Cancellation u/s 12AB(4)
The Trust & Its Charitable Recognition
The assessee-Trust was established to create awareness regarding Spiritual Science & Anapanasati Meditation and promote physical, mental & intellectual health.
It was granted registration u/s 12AA on 21.11.2007 & approval u/s 80G(5)(vi) on 04.08.2009. Its claims for exemption u/s 11 had also been accepted by the Department in proceedings u/s 143(1) as well as u/s 143(3).
On 09.08.2018, the Trust filed Form 10G, seeking approval u/s 80G. The CIT(E), however, rejected the application vide order dated 12.02.2019 for non-compliance with notices. The notices sent on two occasions had been returned with the postal endorsement “refused”.
Crucially, the application was not rejected because the Trust’s objects were non-charitable or its activities were non-genuine. It was rejected purely for non-prosecution.
Provisional Registration Granted Under New Regime
Following the new registration regime introduced by the Finance Act, 2020, the Trust filed Form 10A on 31.08.2021, seeking registration u/s 12A & approval u/s 80G.
The Department granted registration & approval through Form 10AC dated 24.09.2021, covering AYs 2022-23 to 2026-27.
