Gajanana Charitable Trust Vs CIT (ITAT Cochin)
ITAT Cochin held that denial of registration u/s. 80G to the existing trust alleging belated filing of application applying sub clause (iii) of proviso to section 80G(5) unjustified as the same apply to newly formed trust only.
Facts- The assessee was granted provisional approval u/s 80G of the Act dated 18.10.2021 in Form 10AC u/s. 80G(5)(iv) of the Act. Subsequently the assessee has applied for permanent registration in Form 10AB under clause (iii) to sub-section (5) of section 80G of the Act dated 24.09.2023.
Admittedly, the trust was established in the year 2011 and its activities commenced much earlier. Therefore, CIT (Exemption) was of the view that the application for permanent registration should have been filed by the assessee before the extended time allowed by the CBDT in its circular bearing No. 8/22 up-to the date 30.09.2022 wherein the application has been filed belatedly dated 24.09.2023. Accordingly, CIT(Exemption) rejected the application for registration u/s. 80G. Being aggrieved, the present appeal is filed.
Conclusion- ITAT Surat Bench in the case of Vananchal Kelavani Trust held that the intention of parliament in putting the word “or within six months of commencement of its activities, whichever is earlier” is in the context of the newly formed Trust/institutions. For the existing Trust/Institution, the time limit for applying for Regular Registration is within six months of expiry of Provisional registration if they are applying under sub clause (iii) of the Proviso to Section 80G(5) of the Act. This will be the harmonious interpretation.
