Arth Foundation Vs CIT (Exemption) (ITAT Pune)
ITAT Pune held that time limit of six months for filing an application u/s. 80G(5) of the Income Tax Act applies only to trusts which have not started charitable activities and not to trust which has already started charitable activities before obtaining Provisional registration. Accordingly, application held to be valid and maintainable.
Facts- Assessee had filed application in Form No.10AB for approval under section 80G(5) of the Act, on 07.02.2025. Commissioner of Income Tax(Exemption) noted that Assessee had started activities on 01.04.2022. Therefore, CIT(E) rejected the assessee‘s application u/s.80G(5) of the Act, stating that as per Clause-iii of Section 80G(5) time limit to file application was within six months from the date of commencement of activities or within six months from the date of provisional approval. In this case, provisional approval was received on 23.09.2021 for a period upto A.Y.2024-25. Being aggrieved, the present appeal is filed.
Conclusion- Held that the words, ―within six months of commencement of its activities” has to be interpreted that it applies for those trusts/institutions which have not started charitable activities at the time of obtaining Provisional registration, and not for those trust/institutions which have already started charitable activities before obtaining Provisional Registration. Thus, the amended provision permits a Charitable Trust to file application for 80G approval at any time after the commencement of activities. Therefore, in these facts and circumstances of the case, we hold that the Assessee Trust had applied for registration within the time allowed under the Act. Hence, the application of the assessee is valid and maintainable.
