Heritage Youth Foundation Vs CIT-Exemption (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT), Pune Bench, has ruled in favor of Heritage Youth Foundation, setting aside an order by the Commissioner of Income-tax (Exemption) [CIT(E)] that had rejected the foundation’s application for 80G approval on grounds of being time-barred. The ITAT’s decision provides clarity on the interpretation of new provisional registration timelines under Section 80G(5) of the Income Tax Act, particularly for organizations that had already commenced charitable activities before seeking provisional approval.
Background of the Case
Heritage Youth Foundation had applied for 80G approval, which allows donors to claim deductions for contributions made to approved charitable organizations. The CIT(E) dismissed the application, contending that it was filed beyond the statutory period. According to the CIT(E), the foundation’s activities began on August 10, 2018. Given a CBDT extension via Circular No. 08/2022, the application should have been filed by March 19, 2023. However, Heritage Youth Foundation filed its application on September 28, 2023, which the CIT(E) deemed too late, leading to the rejection without delving into the merits of the application. The CIT(E) also cancelled the provisional registration granted on September 20, 2022, without an opportunity for hearing.
The Statutory Interpretation Challenge
