Charitable Trust Vs Commissioner Income (Exemption) (ITAT Chennai)
The case involves two appeals (ITA No. 1933/Chny/2025 and ITA No. 1934/Chny/2025) filed by an assessee, a Charitable Trust incorporated on December 11, 2006, which possessed a valid registration under section 12AA of the Income Tax Act, 1961, dated January 31, 2008.
Key Issues and Assessee’s Mistake
The primary issue stems from the transition to new registration provisions under the Finance Act, 2021. Despite having prior approval, the assessee inadvertently filed an application in Form 10A on March 30, 2022, under the wrong section—clause (iv) of the first proviso to section 80G(5) of the Act (for provisional registration) instead of clause (i) (for regular registration for 5 years, applicable to old trusts).
This mistake led the competent authority, the PCIT/CIT, Chennai, to grant provisional registration in Form 10AC, dated April 6, 2022, only for a three-year period (AY 2022-23 to AY 2024-25).
Subsequent Actions and Rejection
The assessee later filed an application in Form 10AB on October 29, 2024, under clause (iii) to extend its provisional registration. The CIT (Exemption) rejected this subsequent application on June 9, 2025, treating it as not maintainable/filed beyond the due date. This rejection was challenged in ITA No. 1934/Chny/2025. The initial grant of provisional approval was challenged in ITA No. 1933/Chny/2025.
