ITAT Dismisses Appeal, Directs CIT (E) to Resolve Fresh Form 10 AB Application for Section 80 G (5) Trust Registration [Read Order]

In a recent, judgement, The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT)  has dismissed the appeal and directed the Commissioner of Income Tax ( Exemption ) CIT (E) to address the new Form 10 AB application for the Section 80G(5) of the Income Tax Act, 1961, trust registration.

In an appeal filed by the assessee,  Navgujarat Foundation against the order dated December 20, 2023, issued by the Commissioner of Income Tax (Exemption), Ahmedabad, the Assessee sought to challenge the denial of final registration under Section 80G of the Income Tax Act, 1961.

The assessee was not represented at the hearing; however, a written submission dated July 9, 2024, was filed by the Trustee. The submission detailed that the assessee-Trust had made a fresh application for registration under Section 80G of the Act by submitting Form No. 10AB on April 25, 2024, accompanied by Acknowledgement No. 240823170250524, to the Commissioner of Income Tax (Exemption).

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This application was made in response to the Central Board of Direct Taxes (CBDT) Circular No. 7 of 2024, dated April 25, 2024, which extended the deadline for filing Form 10AB for approval under Section 80G(5) of the Act to June 30, 2024. A copy of the circular was also enclosed with the submission. The Revenue, represented by H. Phani Raju, raised no objections to dismissing the appeal and instructed the CIT (E) to consider the application on its merits.

The two-member bench of the Tribunal, consisting of Accountant Member Malaren Vasant Mahadeokar and Judicial Member T.R. Senthil Kumar, recorded the submissions made by the assessee-Trust. Subsequently, the Tribunal dismissed the appeal, directing the Commissioner of Income Tax (Exemption) to consider the fresh application filed by the assessee in Form 10AB on April 25, 2024, for final registration under Section 80G(5) of the Income Tax Act, in accordance with the law. With these observations, the appeal was dismissed.

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