Radhe Krushna Gau Sala Trust Mota Rampar Vs CIT(Exemption) (ITAT Ahmedabad)
Relief for Charitable Trusts: ITAT Ahmedabad Upholds Benefit of CBDT Circular on Late/Wrong 10AB Applications; Fresh Application Valid When Wrong Code Corrected Within CBDT Extended Time – ITAT Ahmedabad
Assessee, a charitable trust, filed appeal against order of CIT(E) dated 11.12.2024 rejecting application in Form 10AB for registration u/s 80G(5). CIT(E) rejected the application stating that a prior application had already been rejected on 03.09.2024 and the fresh application was not maintainable under para 4.1 of CBDT Circular No. 7/2024 dated 25.04.2024.
Before Tribunal, Assessee argued that the first application contained a wrong section code. Hence, the revised application dated 04.06.2024, filed within extended time allowed under Circular No. 7/2024, was fully covered under para 4.1 of the said Circular, which permits fresh application where earlier one was rejected due to late filing or wrong code.
Tribunal observed that CBDT Circular 7/2024 extended time for filing Form 10AB up to 30.06.2024 & expressly allowed fresh applications where original application was rejected for wrong section code. In the present case, the fresh application correcting the section code was filed even before rejection order was passed on the earlier application. Therefore, Assessee stood on stronger footing.
