KMV FOUNDATION,HYDERABAD V. CIT(EXEMPTIONS), HYDERABAD

ITA 641/HYD/2025

AI Insights

The case involves KMV Foundation, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Hyderabad, rejecting their application for registration under section 80G of the Income Tax Act due to alleged delay in filing. The CIT (E) had rejected the application on the grounds that it was filed beyond the extended deadline provided by CBDT circular No.7/2024. However, the Tribunal noted that the provisional registration was valid until March 2025, and the application was filed within six months prior to the expiry of the provisional registration. The Tribunal also referenced a similar case, Shiva Kiran Charitable Trust vs. CIT (E), where it was held that the application was within the limitation period.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706048 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Other Referred Cases: Shiva Kiran Charitable Trust vs. CIT (E)
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P VINOD
• Keywords: Set aside; Period of limitation; Charitable institution
• Section: 80G

Judgement Text

" ITA No 641 of 2025 KMV Foundation Page 1 of 8 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ DB-B ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Manjunatha, G. Accountant Member आ.अपी.सं /ITA No.641/Hyd/2025 (िनधाŊरण वषŊ/Assessment Year: 2025-26) KMV Foundation Hyderabad PAN:AACTK8789L Vs. Commissioner of Income Tax (Exemptions) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri P Vinod, Advocate राज̾ व Ȫारा/Revenue by:: Shri Narender Kumar Naik, CIT (DR) सुनवाई की तारीख/Date of hearing: 02/07/2025 घोषणा की तारीख/Pronouncement: 03/07/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal filed by the assessee is directed against the order dated, 17/03/2025 of the learned CIT (E), Hyderabad, for the A.Y.2025-26, whereby the application of the assessee seeking registration/approval u/s 80G of the Act was rejected, due to delay in filing the application in Form 10AB. 2. The ass has raised the following grounds of appeal: ITA No 641 of 2025 KMV Foundation Page 2 of 8 ITA No 641 of 2025 KMV Foundation Page 3 of 8 3. The learned AR of the assessee has submitted that the learned CIT (Exemption) has treated the application for approval u/s 80G in Form-10AB as beyond the period of limitation. However, the application was within the time limit as made by the assessee before the expiry of 6 months of the provisional registration. He has further submitted that the date of commencement of the activity of the Assessee Trust was prior to the grand of provisional registration dated, 22/06/2022 valid ITA No 641 of 2025 KMV Foundation Page 4 of 8 from A.Y 2023-24 to 2025-26. Therefore, the limitation for filing of the application in Form-10AB for regular approval u/s 80G of the Act has to be considered in the context of the expiry of the provisional registration and not in the context of the commencement of the activities of the assessee. Thus, the learned AR has submitted that the application filed by the assessee for regular registration/approval is within the period of limitation and therefore, the learned CIT (Exemption) has wrongly rejected the application on the ground of limitation. 4. On the other hand, the learned DR has submitted that the assessee has filed the application in Form 10AB on 28/09/2024 which is beyond the extension of limitation by the CBDT vide, circular No.7/2024 dated 25/04/2024 whereby the limitation was extended up to 30/06/2024. Therefore, the application filed by the assessee was beyond the period of limitation as extended by the CBDT as well as 6 months from the date of commencement of the activities. He has relied upon the impugned order of the learned CIT (Exemption). 5. We have considered the rival contentions and carefully perused the impugned order of the learned CIT (Exemption). The assessee was granted provisional registration/approval in Form 10AC on 22/06/2022 valid from A.Y 2023-24 to A.Y 2025-26. Thereafter, the assessee filed the application in Form 10AB ITA No 641 of 2025 KMV Foundation Page 5 of 8 seeking regular approval u/s 80G of the Act on 30/09/2024 which was rejected by the learned CIT (Exemption) as under: “The assessee has filed an e-application in Form No.10AB seeking registration u/s 80G of the Income-Tax act, 1961. 2. Notices dated 03.12.2024 and 14.02.2025 were issued in respect of proceedings u/s 80G(5)(iii) to the address mentioned in the Form 10AB to produce the copy of Memorandum of Association/Trust deed for verification and to furnish a detailed reply on the specific information called for in the said notice. 3. In response to the above notice, the assessee submitted his reply. On perusal of the submissions made by the assessee, it is observed that the CPC has issued provisional registration in form 10AC dated 22.06.2022 valid from AY 2023-24 to AY 2025-26. As per the finance Act, 2020, the assessee should have applied form 10AB for regular registration u/s 80G, at least six months before the expiry of provisional registration or within six months from the date of commencement of activities, whichever is earlier. Further, the CBDT vide circular No. 7 of 2024 dated 25.04.2024 extended the time limit for filing of form 10A/10AB till 30.06.2024. However, the assessee has applied form 10AB for regular registration u/s 80G on 28.09.2024, i.e. beyond the time limit prescribed for filing of form 10AB. 4. Keeping in view of the above, as the assessee has made the application in form 10AB beyond the time limit prescribed, the present application in form 10AB for registration u/s 80G is herewith rejected.” 6. On identical facts and identical order of the CIT(E), we have considered this issue in case of Shiva Kiran Charitable Trust vs. CIT (E) in ITA No.627/Hyd/2025, vide order dated 2nd July, 2025 in Para 5 & 6 as under: “5. We have considered the rival contentions and carefully perused the impugned order of the learned CIT (Exemption). The assessee was granted provisional registration/approval in Form 10AC on 22/06/2022 valid from A.Y 2023-24 to A.Y 2025-26. ITA No 641 of 2025 KMV Foundation Page 6 of 8 Thereafter, the assessee filed the application in Form 10AB seeking regular approval u/s 80G of the Act on 28/09/2024 which was rejected by the learned CIT (Exemption) as under: “The assessee has filed an e-application in Form No.10AB seeking registration u/s 80G of the Income-Tax act, 1961. 2. Notices dated 03.12.2024 and 17.02.2025 were issued in respect of proceedings u/s 80G(5)(iii) to the address mentioned in the Form 10AB to produce the copy of Memorandum of Association/Trust deed for verification and to furnish a detailed reply on the specific information called for in the said notice. 3. In response to the above notice, the assessee submitted his reply. On perusal of the submissions made by the assessee, it is observed that the CPC has issued provisional registration in form 10AC dated 22.06.2022 valid from AY 2023-24 to AY 2025-26. As per the finance Act, 2020, the assessee should have applied form 10AB for regular registration u/s 80G, at least six months before the expiry of provisional registration or within six months from the date of commencement of activities, whichever is earlier. Further, the CBDT vide circular No. 7 of 2024 dated 25.04.2024 extended the time limit for filing of form 10A/10AB till 30.06.2024. However, the assessee has applied form 10AB for regular registration u/s 80G on 28.09.2024, i.e. beyond the time limit prescribed for filing of form 10AB. 4. Keeping in view of the above, as the assessee has made the application in form 10AB beyond the time limit prescribed, the present application in form 10AB for registration u/s 80G is herewith rejected.” 6. The learned CIT (Exemption) has given the reasons for treating the application as beyond the time limit extended by the CBDT, vide circular No.7/2024, dated 25/04/2024. It is pertinent to note that the Circular No.7 of 2024 of the CBDT extended the time limit for submitting the application in Form-10AB for the A.Y 2022-23 whereas in the case in hand, the provisional registration was granted from the A.Y 2023-24 to 2025-26. Therefore, the provisional registration was valid up to March, 2025 and the limitation for filing the application in Form-10AB was up to 30/09/2024 i.e. 6 months before the expiry of the provisional registration/approval. The other limitation provided for filing of ITA No 641 of 2025 KMV Foundation Page 7 of 8 Form 10-AB was in respect of the date of commencement of the activities of the Trust/Institution which is not relevant for the case of the assessee, due to the simple reason that the activities were already commenced in the case of the assessee prior to the provisional registration. Thus, the limitation extended by the CBDT Circular No.7/2024 is not for the application for approval/registration valid from A.Y 2023-24 onwards but it was for the A.Y 2022-23. By considering these facts as well as the earlier decisions of the Tribunal as relied upon by the assessee, we are of the considered view that the application filed by the assessee for regular approval/registration u/s 80G of the Act on 28/09/2024 is within the limitation, being more than 6 months before the expiry of the provisional registration. Accordingly, in view of the above facts and circumstances, the impugned order of the CIT (Exemption) is set aside and the matter is remanded to the record of the CIT (E) for re-consideration of the application of the assessee for grant of regular registration/approval u/s 80G of the I.T. Act, 1961 on merits by considering all relevant facts, details and record.” 7. In the case in hand, the assessee has stated in the reply filed before the CIT (E) that the assessee Trust commenced its charitable activity with effect from the date of its registration i.e. 22/06/2016 and therefore, when the activities of the assessee were commenced prior to the provisional registration granted on 22/06/2022, then the limitation reckoned from the commencement of the activity becomes irrelevant. Following the earlier order of this Tribunal (cited Supra), we hold that the application filed by the assessee in Form 10AB is within the period of limitation and consequently, the impugned order of the CIT (E) is set aside and the matter is remanded to the record of the CIT (E) for reconsideration of the application of the assessee for grant of regular registration/approval u/s 80G of the Act on merits by considering all relevant facts, details and record. We order accordingly. ITA No 641 of 2025 KMV Foundation Page 8 of 8 8. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 3rd July, 2025. Sd/- Sd/- (MANJUNATHA, G.) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 3rd July, 2025 Vinodan/sps Copy to: S.No Addresses 1 KMV Foundation, 8-3-948/949 Level-1, Solitaire Plaza, Beside Image Hospital Ameerpet, Srininagar Colony, SG Khairatabad, Hyderabad 2 CIT (Exemptions) Aayakar Bhavan, Basheerbagh, Opp: LB Stadium, Hyderabad 500004 3 Pr. CIT – Exemptions, Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "