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TMI BlogInterpreting Time Limits for 80G Registration for Charitable Institutions: Avoiding Absurdity in the LawX X X X Extracts X X X X X X X X Extracts X X X X ..... DHPUR 1. INTRODUCTION This article analyzes a recent decision by the Income Tax Appellate Tribunal (ITAT) concerning the registration process for charitable institutions u/s 80G of the Income Tax Act, 1961. The core legal question presented was whether the application for registration filed by the assessee (a charitable trust) was time-barred or not, given the specific timelines prescribed in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the legislative intent behind the amendments introduced by the Finance Act, 2020. The Tribunal referred to the Budget Speech of the Hon'ble Finance Minister and the Memorandum of the Finance Bill, 2020, to understand the rationale behind the introduction of the concept of "provisional approval" for charitable institutions. The ITAT observed that the intention behind the amendme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , ERNAKULAM, AND ANOTHER - 1981 (9) TMI 1 - SUPREME COURT, the ITAT held that statutory provisions must be interpreted in a manner that avoids absurdity and mischief. Consequently, the Tribunal interpreted the phrase "within six months of commencement of its activities" as applicable only to newly formed trusts/institutions that had not started charitable activities at the time of obtain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee to file necessary documents. 5. DOCTRINAL ANALYSIS The ITAT's decision highlights the importance of interpreting statutory provisions in a harmonious and purposive manner, avoiding literal interpretations that may lead to absurd or unintended consequences. The Tribunal's reliance on the legislative intent, as expressed in the Budget Speech and the Memorandum of the Finance Bil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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