Debabrata-Auro Foundation Vs CIT (Exemptions) (ITAT Mumbai)
Existing Trust Not Hit by 6-Month Rule — ITAT Revives 12AB & 80G Applications
The Mumbai Bench of the Income Tax Appellate Tribunal set aside the rejection of the assessee-foundation’s applications for final registration under section 12AB and approval under section 80G, holding that the CIT(E) had misapplied the limitation provisions under section 12A(1)(ac)(iii).
The assessee, an existing Section-8 company registered under section 12A since 2017, had applied for provisional registration under the new regime in January 2023 and was granted provisional registration valid up to AY 2025-26. Thereafter, it filed Form 10AB on 03-03-2025 seeking final registration. The CIT(E) rejected the application as time-barred, holding that the trust should have applied within six months from commencement of activities after provisional registration, and consequentially rejected the 80G application as well.
The Tribunal found this reasoning factually and legally incorrect, noting that the assessee was not a newly created trust, but an existing charitable entity carrying on activities long before the grant of provisional registration. Therefore, the second limb of section 12A(1)(ac)(iii)—applicable to new trusts commencing activities—had no application. The rejection was thus based on an incorrect appreciation of facts and law.
Accordingly, the ITAT set aside both orders and remanded the matters to the CIT(E) with directions to admit the applications and decide them on merits, after granting reasonable opportunity of hearing. Both appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
These are two appeals filed by the assessee against the respective orders of the Ld. Commissioner of Income Tax(Exemptions), Mumbai, dated 27-09-2025, wherein the assessee’s application, seeking registration u/s. 12AB and 80G of the Income Tax Act, 1961 („the Act’) have been rejected. Both these appeals were heard together and are being disposed-off by this common order, for the sake of convenience.
