Case Law Details
Nrisimha Priya Charitable Trust Vs Central Board of Direct Taxes (Madras High Court)
Madras High Court held that CBDT Circular no. 6 of 2023 dated 24.05.2023 giving differential treatment by not extending time for filing application to new trust having provisional approval u/s. 80G is violative of Article 14 of the Constitution of India.
Facts- The petitioner trust was established on 09.09.2021 and is allotted a Permanent Account Number under the Income-Tax Act, 1961 (from now on referred to as ‘the Act‘). The trust is formed with charitable and educational goals. The petitioner had to apply for a provisional registration/approval under the Act as per the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 which amended the provisions relating to the application for the registration. As per the said Act, the first and second proviso to Section 10(23C), Section 12A(1)(ac) and the first and second proviso to Section 80G(5) of the Act were amended.
The petitioner applied for provisional approval in Form No.10A to the second respondent seeking approval under clause (iv) of the first proviso to sub-section 5 of Section 80G of the Act on 25.09.2021. The petitioner was granted provisional approval on 06.10.2021. In the meanwhile, the petitioner commenced its activities from 09.09.2021 and therefore, had to apply for regular approval/registration in Form No.10AB within six months from the date of commencement i.e., within six months from 09.09.2021.
While so, considering the difficulties faced by the assessees in electronically filing Form No.10AB, the first respondent, namely, the Central Board of Direct Taxes, issued Circular No.8 of 2022, dated March 21, 2022, by extending the date for filing applications for regular registration or approval till September 30, 2022. The time extension was granted in respect of the existing trusts and the new trusts for registrations u/s. 10(23C), 12A, and 80G(5).
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