Teddy Trust Vs CIT (Exemption) (ITAT Chennai)
Teddy Trust filed an appeal with the Income Tax Appellate Tribunal (ITAT) Chennai against the denial of registration under Section 80G(5) of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemption), Chennai (CIT(E)) dated September 25, 2023. The trust sought registration by submitting Form No. 10AB on March 30, 2023.
Key Details
- Incorporation and Activities: The trust was incorporated on November 4, 1992, and commenced its activities on January 17, 1992.
- Provisional Approval: The trust received provisional approval in Form No. 10AC under Section 80G(5)(iv) for the period from October 21, 2022, to Assessment Year (AY) 2025-26.
- Application Timeline: According to Section 80G(5)(iii), the application had to be filed at least six months before the expiry of the provisional approval or within six months of commencing its activities. The trust filed the application after this period, leading to its rejection by CIT(E) for being time-barred.
CIT(E)’s Findings
1. Incorrect Form Usage: The trust, being an old entity, should have sought registration under the new regime in Form No. 10A under Section 80G(5)(i) instead of Form No. 10A under Section 80G(5)(iv), which led to provisional approval for only three years.
2. Timeline Extensions: Multiple Circulars by the Central Board of Direct Taxes (CBDT) extended the timeline for filing Form No. 10A and Form No. 10AB up to September 30, 2022. However, further extensions did not cover Form No. 10AB under Section 80G, making the application time-barred.
