Due Date For Filing Form 10AB Extended By CBDT; Bangalore ITAT Quashes Order Rejecting Section 80G Approval

The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has quashed the order rejecting the approval under Section 80G of the Income Tax Act as the Central Board of Direct Taxes (CBDT) has extended the due date for filing Form 10A/10AB via press release dated April 25, 2024, to June 30, 2022.

The bench of Beena Pillai (Judicial Member) and Laxmi Prasad Sahu (Accountant Member) has observed that the CBDT, while considering the representations received by the CBDT requesting a further extension of the due date for filing Form 10A/10AB beyond the last extended date of September 30, 2023, and with a view to avoiding genuine hardships to taxpayers, extended the due date of filing Form 10A/Form 10AB up to June 30, 2024, in respect of certain provisions of Section 10(23C), Section 12A, Section 80G, and Section 35 of the Income Tax Act.

Section 80G of the Income Tax Act provides for a deduction for donations made to certain charitable institutions or funds. The deduction is available to individuals as well as companies. The deduction under Section 80G can be claimed on the amount donated to eligible institutions or funds.

Form 10A is used at the time of the registration or approval of a trust, institution, or NGO for the first time. It means it is used just once in a lifetime, following which Form 10AB is required for subsequent renewals. Any application for renewal of registration or approval of a trust shall be required to be made in Form 10AB.

The provisional approval under Section 80G of the Income Tax Act was granted in Form 10AC on October 15, 2021, from October 15, 2021, to AY 2024-25, and the assessee filed an application in Form 10AB on November 3, 2023, for regularization of approval under Section 80G of the Income Tax Act.

The CIT (Exemptions) noted that the application in Form 10AB was filed belatedly by the assessee as per proviso to Section 80G(5). He therefore rejected the application of the assessee.

The appellant/assessee has challenged the order of the CIT (Exemptions), Bangalore, rejecting approval under Section 80G of the Income Tax Act.

The assessee contended that the CBDT has extended the due date for filing Form 10A/10AB via press release dated April 25, 2024, to June 30, 2024. He therefore requested that the issue be sent back to CIT (Exemptions) for fresh consideration.

The tribunal noted that the CBDT has issued Circular No. 07/2024 dated April 25, 2024, further extending the due date for filing Form 10A and Form 10AB under the Income-tax Act, 1961, up to June 30, 2024.

The tribunal remanded the matter back to the CIT (Exemptions) for fresh consideration and decision as per law.

Counsel For Appellant: Harsha K.M., CA

Counsel For Respondent: Sunil Kumar Agarwal

Case Title: Carers World Wide Versus The Commissioner of Income Tax (Exemptions)

Case No.: ITA No.886/Bang/2024

Click Here To Read The Order