C P Reddy Charitable Trust Vs CIT (Exemption) (ITAT Visakhapatnam)
The appeal concerns the C P Reddy Charitable Trust challenging the order dated 17.06.2025 passed by the Commissioner of Income Tax (Exemptions), Hyderabad, which rejected its application for regular registration under Section 80G(5) of the Income Tax Act, 1961. The trust raised grounds contending that the rejection was erroneous because it failed to consider the merits of the case, the genuine reasons for delay in filing, and the ongoing charitable activities of the trust.
The trust had been granted provisional registration under Section 80G via Form 10AC on 24.09.2021, valid for assessment years 2022–23 to 2024–25. Subsequently, the trust filed Form 10AB for regular registration under Section 80G on 31.12.2024. During proceedings, the CIT(Exemptions) issued notices on 29.03.2025 and 19.05.2025 seeking specific information, which the trust submitted in full compliance.
The CIT(Exemptions) rejected the application, stating that it was filed beyond the prescribed time limit under the amended provisions introduced by the Finance Act, 2020. The law requires that Form 10AB be filed at least six months prior to the expiry of provisional registration or within six months from commencement of activities, whichever is earlier. Although CBDT Circular No. 7/2024 dated 25.04.2024 extended the due date for filing to 30.06.2024, the trust filed its application on 31.12.2024, which was clearly time-barred. Consequently, the CIT(Exemptions) rejected the application solely due to procedural delay.
