Case Law Details
Kailash Math Trust Vs CIT (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT) Pune recently delivered a landmark judgment in the case of Kailash Math Trust vs. Commissioner of Income Tax (Exemption), Pune, focusing on the critical aspects of Section 80G of the Income Tax Act, 1961. This ruling sheds light on the provisions related to the application timing for registration under Section 80G, particularly emphasizing the requirement for charitable trusts to apply within six months of commencing their activities.
Analysis
The crux of the dispute revolved around the Kailash Math Trust’s appeal against the decision of the ld.Commissioner of Income Tax (Exemption), Pune, who had rejected their application for registration under Section 80G. The rejection was based solely on the ground that the application was filed beyond the specified timeframe, thus declaring it time-barred.
The ITAT, in its deliberation, highlighted the significant amendments introduced by the Finance Act, 2020, concerning the procedure for registration under Section 80G. Particularly, it introduced the concept of “Provisional Approval” to simplify the registration process for new charitable institutions. This amendment aimed to facilitate a smoother transition for newly established trusts or institutions by providing them with a three-year provisional registration period before they must apply for full registration.
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