Mitcon Forum for Social Development Vs CIT (Exemption) (ITAT Pune)
Income Tax Appellate Tribunal (ITAT), Pune Bench, has delivered a significant ruling that clarifies the timelines for seeking final 80G approval under the Income Tax Act, 1961, particularly for charitable institutions that had already commenced their activities before obtaining provisional registration. The Tribunal set aside an order by the Commissioner of Income-tax (Exemption) [CIT(E)] that had rejected the application of Mitcon Forum for Social Development as time-barred.
Background of the Case
Mitcon Forum for Social Development had sought approval under Section 80G(5)(iii) of the Income Tax Act, which enables donors to claim deductions for contributions. The organization, registered under Section 13(1) of the Companies Act on December 28, 2023, and already holding a 12A registration, received provisional 80G approval on October 2, 2021, valid until Assessment Year 2024-25.
The core of the dispute arose when the CIT(E) rejected Mitcon Forum’s application for final 80G approval, filed on September 13, 2024. The CIT(E) argued that since the trust’s activities had commenced in Financial Year 2021-22 (before provisional approval), the application for final approval should have been filed within six months from the date of provisional approval, i.e., before April 1, 2022. Although the Central Board of Direct Taxes (CBDT) had extended this date to June 30, 2024, the CIT(E) maintained that the September 13, 2024, filing was still beyond this extended deadline, rendering it time-barred.
