Fofaria Family Charitable Trust Vs CIT (Exemption) (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, adjudicated an appeal filed by the Fofaria Family Charitable Trust against the order of the Commissioner of Income Tax (Exemption) [CIT(E)], which rejected the Trust’s application for regular registration under Section 80G(5) of the Income Tax Act, 1961. The core issue revolved around the Trust’s inadvertent selection of an incorrect clause in the prescribed application form, Form 10AB, and the CIT(E)’s subsequent rejection of the application without a hearing on the merits.
The Trust had initially secured provisional approval under Section 80G(5), which was valid until March 31, 2024. To obtain regular approval, the Trust was required to file Form 10AB under clause (iii) of the first proviso to Section 80G(5). This clause applies to institutions seeking regular approval after receiving provisional approval. However, the Trust twice submitted the application under clause (ii), which is intended for institutions that already possess a regular approval nearing its expiry.
The CIT(E) rejected the application, asserting that the Department lacked the authority or facility to modify the “section code” selected by the applicant in Form 10AB. Because the Trust held only provisional approval, the application filed under clause (ii) (for renewal of existing regular approval) was deemed non-maintainable and rejected without evaluating the charitable activities or merits of the Trust.
