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Facts
The assessee, Navsarjan Education Trust, applied for final registration under Section 12A(1)(ac)(iii) and approval under Section 80G of the Income Tax Act. The applications were rejected by the CIT(E) for reasons including lack of response from the assessee and alleged delay in filing applications. The assessee cited lack of awareness of online procedures and procedural complexities.
Held
The Tribunal condoned the delay in filing the appeals, set aside the orders of the CIT(E), and restored the matters for fresh adjudication. The Tribunal held that the application for final approval under Section 80G should be considered after provisional approval, not from the date of commencement of activities, acknowledging the confusion surrounding amended provisions.
Key Issues
Whether the rejection of applications for 12A registration and 80G approval by the CIT(E) was justified, considering the reasons for delay and the interpretation of the relevant statutory provisions.
Sections Cited
12A(1)(ac)(iii), 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Annapurna Gupta
आदेश/O R D E R
Per Sanjay Garg, Judicial Member:
The captioned four appeals have been preferred by the assessee-trust against the separate orders of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘CIT(E)’].
ITA Nos.2483, 2484, 2487 & 2497/Ahd/2025 Navsarjan Education Trust vs. Dy.CIT Asst. Years : 2023-24 & 2021-22
ITA No.2483/Ahd/2025 for Assessment Year (AY) is against the order of the Ld. CIT(E) dated 19/02/2024 rejecting the application of the assessee for final/regular registration u/s.12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), whereas, ITA No.2497/Ahd/2025 is against the order of the Ld. CIT(E) dated 13/11/2024 rejecting the another application of the assessee for final/regular approval u/s.12A(1)(ac)(iii) of the Act. ITA No.2484/Ahd/2025 for AY 2021-22 is against the impugned order of the Ld. CIT(E) dated 07/03/2024 rejecting the application of the assessee for final/regular approval under clause (iii) of first proviso to sub- section (5) of section 80G of the Act, whereas, ITA No.2487/Ahd/2025 is against the order of the Ld. CIT(E) dated 15/11/2024 rejecting the another application of the assessee for final/regular approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Act.
ITA No.2483/Ahd/2025
This appeal of the assessee-trust is time-barred by 591 days. A separate application for condonation of delay has been filed, wherein, it has been pleaded that the assessee-trust was not aware of any notices of hearing sent online by the Ld. CIT(E). That the trustees of the assessee-trust were not much aware of the procedure in relation to the online proceedings. There was no permanent Chartered Accountant (CA) appointed by the assessee- trust, therefore, the assessee-trust could not represent its case before the Ld. CIT(E) and even the assessee-trust was not aware about the passing of the impugned order of the Ld. CIT(E).
ITA Nos.2483, 2484, 2487 & 2497/Ahd/2025 Navsarjan Education Trust vs. Dy.CIT Asst. Years : 2023-24 & 2021-22
The Ld. Counsel for the assessee has submitted that the assessee is a public charitable trust registered under the Bombay Public Trusts Act, 1950, vide Registration No.F/2485/Rajkot, dated 02/07/1991. Its sole object is to impart education to underprivileged children through “Metoda Samarpan School” at Kalawad Road, Lodhika, Rajkot.” The assessee-trust was granted provisional registration u/s.12A(1)(ac)(vi) of the Act, which was valid for the period from AYs 2021-22 to 2023-24. The assessee-trust thereafter applied for final registration u/s.12A(1)(ac)(iii) of the Act. During the consideration upon application of the assessee for final registration, the Ld. CIT(E) called for certain details and evidences relating to the charitable activities of the trust of the assessee. Since there was no response coming out from the assessee-trust, the Ld. CIT(E) dismissed the application of the assessee for want of verification of genuineness of the activities of the assessee-trust.
4.1. The Ld. Counsel for the assessee has further submitted that since the trustees of the assessee-trust were not aware about the know-how of the online proceedings, therefore, the assessee-trust could not present its case before the Ld. CIT(E) resulting into passing of the impugned order.
Considering the above submissions and also considering that the assessee-trust is a charitable trust engaged in the noble cause of imparting education to underprivileged children and in the interests of justice, the delay in filing the appeal is hereby condoned, the impugned order of the Ld. CIT(E) is set aside and matter is restored to the file of the Ld. CIT(E) for decision afresh on the application of the assessee-trust. It is directed that the assessee- trust will remain vigilant and duly furnish the requisite details as and when called for by the Ld. CIT(E) and it will not be a ground that the notices issued
ITA Nos.2483, 2484, 2487 & 2497/Ahd/2025 Navsarjan Education Trust vs. Dy.CIT Asst. Years : 2023-24 & 2021-22
by the Ld. CIT(E) did not come to the knowledge of the trustees of the assessee-trust. The assessee-trust, if so required, may furnish its correct email-id to the Ld. CIT(E), whereupon the Ld. CIT(E) will issue the notices of hearing to the assessee-trust.
With the above observations, the appeal of the assessee in ITA No.2483/Ahd/2025 is treated as allowed for statistical purposes.
ITA No.2497/Ahd/2025
The facts and issue involved in this appeal are identical to that has been discussed above in ITA No.2483/Ahd/2025, therefore, the delay in filing the present appeal is also hereby condoned and the matter is restored to the file of the Ld. CIT(E) for decision afresh in the terms as noted above while adjudicating the appeal of the assessee-trust in ITA No.2483/Ahd/2025.
With the above observations, the appeal of the assessee in ITA No.2497/Ahd/2025 is treated as allowed for statistical purposes.
ITA No.2484/Ahd/2025
Now coming to the assessee’s appeal in ITA No.2484/Ahd/2025 for AY 2021-22. The assessee-trust was granted provisional approval u/s.80G(5) of the Act on 09/07/2021 valid for the period from AYs 2021-22 to 2023-24. The assessee, thereafter, applied for final/regular approval under clause (iii) of first proviso to sub-section (5) of section 80 G of the Act on 30/09/2023. The
ITA Nos.2483, 2484, 2487 & 2497/Ahd/2025 Navsarjan Education Trust vs. Dy.CIT Asst. Years : 2023-24 & 2021-22
Ld. CIT(E), however, rejected the said application of the assessee observing that the assessee was registered/incorporated on 02/07/1991. That the relevant provisions of clause (iii) of first proviso to sub-section (5) of section 80G of the Act, is as under:
“where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier.”
The Ld. CIT(E), therefore, observed that since the assessee-trust had already commenced its activities in the year 1991 and the assessee-trust, as per the aforesaid provisions, was supposed to apply for final approval at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier, so the present application of the assessee-trust was time-barred.
We have heard the rival contentions and gone through the record. If we accept the above interpretation of the Ld. CIT(E), then, in no case, final approval u/s.80G(5) of the Act or registration u/s.12A of the Act will be granted to any trust who had commenced its activities even before the grant of provisional registration to it. As per the facts on file, the assessee-trust has been into the charitable activities since 1991, however, it did not apply for registration u/s.80G(5) of the Act. Thereafter, the assessee-trust applied for provisional registration for the first time in the year 2021 which was granted to it on 09/07/2021. The assessee-trust, under the circumstances, was supposed to apply for final/regular approval after grant of provisional approval, that is after 09/07/2021, irrespective of the fact that the assessee-
ITA Nos.2483, 2484, 2487 & 2497/Ahd/2025 Navsarjan Education Trust vs. Dy.CIT Asst. Years : 2023-24 & 2021-22
trust was on existing trust and was into the charitable activities even prior to grant to provisional registration. The assessee-trust accordingly applied for final approval. However, as per the Ld. CIT(E), the assessee-trust was supposed to apply for final approval within six months from the commencement of its activities which have commenced in the year 1991 itself, which is practically impossible. The Ld. CIT(E) expected the assessee to put the cart before the horse. The application for final approval can be made only after the provisional approval is granted. The provisional approval was granted to the assessee-trust in the year 2021 and, thereafter, the assessee- trust applied for final approval on 30/09/2023. It is pertinent to mention here that there was a lot of confusion regarding the interpretation of the amended provisions introduced in the Act w.e.f. 01/04/2021 relating to registration u/s.12A of the Act and approval u/s.80G of the Act including about the dates, prescribed forms and certificates of approval, etc. to be issued and the CBDT had to issue Circulars and Clarifications from time-to-time in this respect. This type of confusion was not only among the assessees but also among the income-tax authorities. The present order of the Ld. CIT(E) is one such example. Therefore, if there is some delay occurred by the assessee in filing the application for final approval, after grant of provisional approval on 09/07/2021, no adverse view is required to be taken against the assessee. Therefore, it is held that the present application by the assessee for final approval has been filed within the limitation period. Accordingly, the impugned order of the Ld. CIT(E) is set aside and the matter is restored to the file of the Ld. CIT(E) for decision afresh after providing proper and adequate opportunity of hearing to the assessee to present its case before the Ld. CIT(E). As a result, the appeal of the assessee in ITA No.2484/Ahd/2025 is treated as allowed for statistical purposes.
ITA Nos.2483, 2484, 2487 & 2497/Ahd/2025 Navsarjan Education Trust vs. Dy.CIT Asst. Years : 2023-24 & 2021-22
ITA No.2487/Ahd/2025
Now, coming to the appeal of the assessee in ITA No.2487/Ahd/2025. The appeal is time-barred by 317 days. Considering the application of the assessee for condonation of delay, the delay in filing the present appeal is hereby condoned.
The present application of the assessee-trust before the Ld. CIT(E) for approval u/s.80G(5) of the Act has been rejected only because the application of the assessee moved u/s.12A of the Act for final/regular registration has been rejected.
Since we have restored the matter relating to the final/regular registration u/s.12A of the Act to the file of the Ld. CIT(E), therefore, the impugned order of the Ld. CIT(E) is set aside and the matter is restored to the file of the Ld. CIT(E) for decision in accordance with law for deciding along with the application of the assessee for final registration u/s.12A of the Act. As a result, the appeal of the assessee in ITA No.2487/Ahd/2025 is treated as allowed for statistical purposes.
It is directed that the Ld. CIT(E) will decide all the restored applications together and by one consolidated order so as to avoid any confusion/overlapping or dual adjudication pertaining to same period.
ITA Nos.2483, 2484, 2487 & 2497/Ahd/2025 Navsarjan Education Trust vs. Dy.CIT Asst. Years : 2023-24 & 2021-22
In view of the discussion made above, all the four appeals of the assessee-trust are treated as allowed for statistical purposes.
Order pronounced in the Open Court on 17/04/2026.
Sd/- Sd/- (Annapurna Gupta ) ( Sanjay Garg) Accountant Member Judicial Member
अहमदाबाद/Ahmedabad, िदनांक/Dated 17/04/2026 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की !ितिलिप अ"ेिषत/Copy of the Order forwarded to : 1. अपीलाथ$ / The Appellant 2. !%थ$ / The Respondent. 3. संबंिधत आयकर आयु& / Concerned CIT 4. आयकर आयु& अपील ( ) / The CIT(A)- 5. िवभागीय !ितिनिध आयकर अपीलीय अिधकरण अहमदाबाद/DR,ITAT, Ahmedabad. , , 6. गाड� फाईल / Guard file.
आदेशानुसार/ BY ORDER, स%ािपत !ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad Date of dictation (dictation pad is attached with file) : 1. 8.4.2026 : 2. Date on which the typed draft is placed before the Dictating Member. 9.4.2026/16.4.2026 Date on which the approved draft comes to the Sr.P.S./P.S : 3. : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 17.4.26 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 17.4.26 7. Date on which the file goes to the Bench Clerk. : 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order