ITAT Allows Ten-Year Trust Registration After Finance Act 2025 Amendment

The present appeal has been filed by Tatsat Public Charitable Trust (Appellant) against the Commissioner of Income Tax, Ahmedabad (Respondent), in the Income Tax Appellate Tribunal (ITAT) “B” Bench, Ahmedabad, before Dr B.R.R. Kumar (Vice-President) and Shri Siddhartha Nautiyal (Judicial Member). The case was decided on December 12, 2025. The appeal is filed by the assessee against the appellate order dated August 20, 2025, passed by the CIT(E).

The assessee applied for registration (Form No. 10AB) on January 17, 2025. The CIT(E) granted registration under section 12AB of the Act for five assessment years instead of ten assessment years.

The Trust approached ITAT. During the hearing AR submitted that an amendment has been introduced in the proviso to sub-section (1) of section 12AB, in which registration will be granted for ten years instead of five years in certain cases.

AR said that under the Finance Act, 2025, the new rule applies from April 1, 2025. Since the trust received its registration on August 20, 2025, which is after this date, the trust should get the benefit of the new rule. Therefore, instead of registration being valid for only five years, the trust should be granted registration for ten years, as allowed under the amended provision.

However, the DR said that because the assessee applied for registration on January 17, 2025, the registration should be valid for only five years.

However, the assessee disagreed and explained that what really matters is when the tax authority passed the order, not when the application was filed. Since the CIT(E) passed the order on August 20, 2025, by that time the amended law was already in force, which allows registration for ten years.

Considering all the facts, ITAT granted the assessee registration approval for ten years and also allowed the appeal file.