Prayas Charitable Trust Vs CIT (ITAT Ahmedabad)
In the case Prayas Charitable Trust vs. CIT, ITAT Ahmedabad addressed an appeal by Prayas Charitable Trust challenging the rejection of its 80G(5) approval application due to a delayed filing of Form 10AB. The CIT (Exemption) had originally denied the application, citing non-maintainability because the trust missed the filing deadline of November 20, 2022. The trust argued that the delay was due to unavoidable circumstances and requested condonation. However, the CIT(E) maintained that it lacked authority to condone such delays.
A recent circular from the CBDT ( Circular No. 07/2024 dated 25.04.2024) allowed entities like Prayas Charitable Trust to refile Form 10AB. In light of this new guidance, the ITAT restored the trust’s application to the CIT(E) for fresh review. The tribunal directed the CIT(E) to reevaluate the case without dismissing it solely based on the previous filing delay and to give the trust an opportunity to present its case. This decision allows Prayas Charitable Trust another chance to seek 80G(5) approval for tax-exempt status, supporting the trust’s charitable objectives under updated procedural flexibility.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 13.03.2024.
