CIT Vs CSP Foundation (Karnataka High Court)
The Karnataka High Court dismissed an appeal filed by the Income Tax Department against the Income Tax Appellate Tribunal (ITAT) in the case of CIT vs. CSP Foundation. The core issue was the rejection of the CSP Foundation’s application for registration under Section 80G of the Income Tax Act, 1961. The application, filed on November 22, 2023, was initially rejected by the Commissioner of Income Tax (Exemptions) for being time-barred.
The assessee appealed this decision to the ITAT. During the appeal’s pendency, the Central Board of Direct Taxes (CBDT) issued a press release on April 25, 2024, extending the deadline for filing Form 10AB until June 30, 2024. Subsequently, the CBDT also released Circular No. 7/2024, which explicitly allowed for fresh applications even if a previous one had been rejected due to a delay.
In light of this new directive, the ITAT remanded the matter back to the Commissioner for reconsideration. The Revenue then appealed this remand order to the High Court. However, the Revenue’s counsel conceded that due to the CBDT’s Circular No. 7/2024, the Tribunal’s decision was correct. The High Court found no grounds to interfere with the remand order and dismissed the appeal.
