Commencement of Activities Before 80G(5) Application Doesn’t Bar Future Tax Benefits

Diamond Cares Vs CIT (Exemption) (ITAT Kolkata) Introduction: The Income Tax Appellate Tribunal (ITAT) Kolkata, in the case of Diamond Cares vs. Commissioner of Income Tax (Exemption), delivered a landmark ruling that significantly impacts trusts seeking approval under Section 80G of the Income Tax Act, 1961. This decision, dated January 10, 2024, underscores the tribunal’s interpretation of the application timeline for final approval under Section 80G(5)(iii) and its implications for trusts with pre-existing charitable activities. Detailed Analysis The core issue in this appeal was the ...