ITAT Mumbai Grants Relief to Charitable Trust on Delayed 12AB and 80G Applications

The “E” Bench of the Income Tax Appellate Tribunal, Mumbai, has granted significant procedural relief to Tirth Global Foundation by condoning delay and remanding its applications for registration under Sections 12AB and 80G of the Income-tax Act, 1961.

Delay Condoned in 12AB Registration

The Tribunal condoned a 78-day delay in filing appeals against the rejection of the trust’s application for regular registration under Section 12AB. It accepted the assessee’s explanation that the delay arose from a bona fide misunderstanding of the newly introduced provisional registration regime and its expiry. Noting that the trust had commenced activities prior to provisional registration and had otherwise complied with statutory filings, the Bench held that procedural lapses should not defeat substantive rights. Relying on judicial precedents and the newly inserted proviso to Section 12A(1)(ac) empowering condonation of delay, the Tribunal remanded the matter to the CIT(E) for fresh consideration.

80G Approval Also Restored

Since rejection of approval under Section 80G was solely consequential to denial of Section 12AB registration, the Tribunal set aside that order as well. The issue was restored to the CIT(E) for de novo adjudication after deciding the 12AB application. Both appeals were thus allowed for statistical purposes, reaffirming a liberal and justice-oriented approach in procedural matters concerning charitable trusts.