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Facts
The assessee's application for approval under Section 80G was rejected by the Ld. CIT(E) because the assessee had not, at that time, filed an application for regular registration under Section 12AB. Subsequently, the assessee filed the application for registration under Section 12AB.
Held
The Tribunal held that the grant of approval under Section 80G is consequential to registration under Section 12AB. Since the assessee has now applied for Section 12AB registration, the matter was restored to the Ld. CIT(E) for fresh adjudication.
Key Issues
Whether the rejection of Section 80G approval is sustainable when the assessee subsequently applies for Section 12AB registration.
Sections Cited
80G, 12AB, 10AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “C” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI ANIKESH BANERJEE
: Shri. Ashish Thakurdesai Assessee by : Shri R. A. Dhyani, (CIT DR) Revenue by Date of Hearing : 16/10/2025 Date of pronouncement : 03/11/2025 ORDER
PER OM PRAKASH KANT, AM
This appeal by the assessee is directed against order dated 28.06.2025 passed by the Ld. Commissioner of Income-tax (Exemptions), Mumbai [in short ‘the Ld. CIT(E)’] rejecting the applications of the assessee for approval u/s. 80G of the Income Tax Act, 1961 [in short the ‘Act’], raising following grounds:
“1. On facts, in circumstances of the case and in law, the learned Commissioner of Income Tax Exemption erred in rejecting the application of the appellant for regularisation of provisional application in Form 10AB. 2. The appellant craves leave to add, alter, modify or delete the above Ground of Appeal.”
Purva Seema Vikas Pratisthan Charitable Institution 2. At the very threshold of hearing, the Learned Counsel for the assessee drew our attention to the paper book comprising forty-two pages, and submitted that the application preferred by the assessee for approval under Section 80G of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) came to be rejected by the Learned Commissioner of Income Tax (Exemptions) [in short “Ld. CIT(E)”], primarily on the ground that the assessee had not, at the relevant time, filed an application for regular registration under Section 12AB of the Act.
2.1 It was, however, pointed out that subsequent to the passing of the impugned order, the assessee has duly filed the application for registration under Section 12AB before the Ld. CIT(E). A copy of such application is placed at pages 33 to 42 of the paper book. The Learned Counsel, therefore, pleaded that the issue may be restored to the file of the Ld. CIT(E) for a fresh adjudication of the assessee’s claim for approval under Section 80G, after taking into account the assessee’s application for registration under Section 12AB and in accordance with law.
2.2 The Learned Departmental Representative, in fairness, did not seriously controvert the submission so advanced on behalf of the assessee, and left the matter to the discretion of the Bench.
We have given our thoughtful consideration to the rival submissions and have perused the material available on record. It is manifest that the grant of approval under Section 80G is consequential and dependent upon the registration of the Purva Seema Vikas Pratisthan Charitable Institution institution under Section 12AB of the Act. In the absence of such registration, the approval under Section 80G cannot, in law, be accorded. However, as the assessee has now duly moved an application for registration under Section 12AB before the competent authority, the ends of substantial justice would be met if the matter is restored to the file of the Ld. CIT(E) for reconsideration of the assessee’s claim under Section 80G, post the disposal of the said application under Section 12AB.
3.1 We accordingly set aside the impugned order of the Ld. CIT(E) and remit the matter back to his file with a direction to adjudicate afresh the assessee’s application for approval under Section 80G, in accordance with law and upon due consideration of the assessee’s registration under Section 12AB.
In the result, the Ground No. 1 appeal of the assessee is allowed for the statistical purposes.
In the result, appeal of the assessee is allowed for the statistical purposes.
Order is pronounced in the open court on 03.11.2025