Tewhima Permaculture Foundation Vs ITO (ITAT Hyderabad)
Income Tax Appellate Tribunal (ITAT), Hyderabad Bench, has set aside an order by the Commissioner of Income Tax (Exemptions) [CIT(E)], Hyderabad, that rejected the application of Tewhima Permaculture Foundation for registration under Section 12AB of the Income Tax Act, 1961. The ITAT, in its order dated June 30, 2025, remanded the matter back to the CIT(E) for fresh consideration, emphasizing the need for a proper opportunity of hearing for the assessee.
Case Background
Tewhima Permaculture Foundation had filed an e-application in Form 10AB to seek regular registration under Section 12AB of the Act. The foundation had previously received provisional registration in Form 10AC on October 21, 2022, valid from Assessment Year (AY) 2023-24 to AY 2025-26.
During the proceedings, the CIT(E) noted that as per the Finance Act, 2020, an assessee should apply for regular registration in Form 10AB at least six months before the expiry of provisional registration or within six months from the date of commencement of activities, whichever is earlier. The CIT(E) also acknowledged CBDT Circular No. 7 of 2024, dated April 25, 2024, which extended the time limit for filing Form 10A/10AB until June 30, 2024.
However, the CIT(E) observed that the assessee filed Form 10AB for regular registration on September 26, 2024, which was beyond the extended deadline. Consequently, the application was rejected.
