Unico Charitable Trust Vs CIT (Exemptions) (ITAT Chennai)
The Income Tax Appellate Tribunal (ITAT) in Chennai has restored a case involving the Unico Charitable Trust back to the Commissioner of Income Tax (Exemptions) [CIT(E)] for a re-evaluation. The case pertains to the trust’s application for regular approval under Section 80G of the Income Tax Act, which was rejected by the CIT(E) due to a 90-day delay in filing the required Form 10AB.
The Unico Charitable Trust, which had previously been granted provisional approval, was required to file Form 10AB by September 2024. However, the trust submitted the form on December 30, 2024. The CIT(E) rejected the application on the grounds that it was filed beyond the stipulated deadline, rendering it not maintainable.
The trust appealed this decision, arguing that the rejection was based on a technicality and that the delay should be condoned, given the genuine nature of its charitable activities. The trust’s representative informed the ITAT that they had already filed a separate petition with the Central Board of Direct Taxes (CBDT) under Section 119(2)(b) of the Act, which grants the CBDT the authority to condone delays in certain filings.
The ITAT, after hearing both parties, found it appropriate to restore the case to the CIT(E) while the CBDT’s decision on the condonation application is pending. The Tribunal reasoned that the outcome of the condonation petition has a direct bearing on the approval under Section 80G. By restoring the matter, the ITAT has directed the CIT(E) to await the CBDT’s order on the delay condonation before passing a new order on the trust’s application. The appeal was, therefore, allowed for “statistical purposes,” meaning it was not decided on its merits but was sent back for a procedural resolution.
