CBDT Extends Time Limit for Form 10AB filing to 30.06.2024: ITAT sets aside CIT (E) order Canceling Trust Registration u/s 12 AB [Read Order]

The Chennai bench of the Income Tax Appellate Tribunal (ITAT) set aside the Commissioner of Income Tax ( Exemption) [CIT(E)] order canceling the trust's registration under Section 12AB, following the Central Board of Direct Taxes’ ( CBDT ) extension of the time limit for filing Form 10AB to 30.06.2024.

The assessee, The Earth Trust filed an application in Form No.10AB on 02.06.2023 seeking registration under clause (iii) of first provision to sub-section (5) of Section 80G. It transpired that the assessee trust was incorporated on 30.12.2004 and it commenced its activities on 01.01.2005. The assessee was granted provisional approval in Form No.10 AC under Section 80G (5)(iv) for the period commencing from 08.12.2022 to AY 2024-25.

The first provision to Section 80G (5), provided a timeline for an application to be filed under clause (iii) of first provision to sub-section (5) of Sec.80G. As per sub-clause (iii) of this proviso, the assessee was required to file this application at least before 6 months prior to expiry of provisional approval or within 6 months from the date of commencement of its activities, whichever is earlier. The said timeline was mandatory in nature. As against this, the assessee filed application on 02.06.2023 which was much after expiry of 6 months from commencement of its activities. Accordingly, it was held by CIT(E) that the application was time barred and liable to be rejected.

The CIT(E) also noted that under the new regime, CBDT, on multiple occasions, extended the time limit for filing the application in Form No.10A and or 10AB. The latest Circular No.08 of 2022 dated 31.03.2022 extended the time limit to 30.09.2022 beyond which there was no further extension. This was evident from subsequent CBDT Circular No.22/2022 dated 01.11.2022 through which CBDT extended the time limit for filing application in Form No.10A under various Sections, up-to 25.11.2022. However no further extension was granted for filing of Form No.10AB. Also, CBDT issued another Circular No.6/2023 on 24.05.2023 extending the due date for filing application in Form No.10AB from 30.09.2022 to 30.09.2023 only in respect of trusts / institutions registered under Section 10(23C) and 12AB.

The bench found that this issue has been decided favorably by the co-ordinate bench in a bunch of appeals titled as M/s CIT-1982 Charitable Trust & Ors, In this decision, the bench held that the extended time limit of 30.09.2023 as per CBDT Circular would apply to Form No.10AB as well.

The two member bench of the tribunal Manu Kumar Giri (Judicial member) and Manoj Kumar Agarwal (Accountant member) also takes note of recent Circular No.07/24 issued by CBDT on 25.04.2024 extending the time limit for all such applications to 30.06.2024. Therefore, there remain no grounds for rejection of application by raising the issue of timeline. Considering the facts and circumstances of the case, ITAT set aside the impugned order and directed CIT(E) to consider the application on merits without raising the issue of timeline. Accordingly, the appeal was allowed for statistical purposes.

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