Provisional Approval Granted to Trust Under New Regime Couldn’t Be Sole Basis for Rejecting Renewal of Registration u/s 80G | ITAT

Case Details: Sheth Vijilal Laxmidas Tribvondas vs. CIT (Exemptions) - [2025] 172 taxmann.com 514 (Mumbai-Trib.)

Judiciary and Counsel Details

• Sandeep Singh Karhail, Judicial Member & Girish Agrawal, Accountant Member
• Kshyap Vepari, for the Appellant.
• Ms Ramma Priya, CIT-DR for the Respondent.

Facts of the Case

The assessee-trust was incorporated with an object of relief to the poor, education, medical relief and advancement of any other objects of general public utility. The assessee filed an application in Form 10A for seeking provisional registration under section 80G. The application was granted, and the assessee received the 80G registration.

Subsequently, the assessee filed an application seeking approval under section 80G. Commissioner (Exemption) rejected the application on the basis that the application was filed under the wrong section.

Aggrieved by the order, the assessee filed an appeal to the Mumbai Tribunal.

ITAT Held

The Tribunal held that the application filed by the assessee seeking approval under section 80G was for renewal of the registration already available with the assessee. From the perusal of the provisions of the first proviso to section 80G(5), it is evident that clause (ii) is applicable to the trusts that already have regular approval and the application is made for the renewal of the same, while in case the trust has been provisionally approved and such approval is expiring, clause (iii) of the first proviso to section 80G(5) is applicable.

In the instant case, since the assessee was already an approved trust, the application was rightly made by the assessee under clause (ii) of the first proviso to section 80G(5), and the grant of provisional approval cannot be the sole basis for rejecting the same.

Accordingly, in the interest of justice and fair play, the application filed by the assessee for renewal of regular approval under section 80G(5) was restored to the file of the Commissioner (Exemption) for de novo adjudication in accordance with the law and after consideration of the facts in entirety.