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Facts
The assessee, a charitable trust, filed an application for final approval under section 80G of the Income Tax Act in Form 10AB. The CIT(E) rejected the application, stating it was filed under the wrong section, despite the trust having provisional approval and a valid registration under section 12A.
Held
The Tribunal noted that the assessee had inadvertently selected the wrong sub-clause in Form 10AB while applying for final registration under section 80G. Therefore, the Tribunal remitted the issue back to the CIT(E) to decide the application afresh.
Key Issues
Whether the rejection of application for approval under Section 80G solely on technical grounds of mentioning a wrong sub-clause is justified, or if the matter should be remanded for fresh consideration.
Sections Cited
80G, 12A
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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI
Before: SMT. BEENA PILLAI & SMT. RENU JAUHRI
Per: Smt. Beena Pillai, J.M.: The present appeal filed by the assessee arises out of order dated 17/06/2025 passed by Ld.CIT(E), Mumbai on following grounds of appeal :
“1. On the facts and circumstances of the case and in law, the Honourable Learned Commissioner of Income Tax (Exemptions) ("
2 ITA 4808/Mum/2025; A.Y. N.A Shri Ramkumar Meghraj Tekariwal Baraganwala Charitable Trust Honourable Ld. CIT(E)") has erred in rejecting the application for approval under section 80G of the Income Tax Act, 1961 ("The Act"), on the ground that the application was filed under a wrong section, without appreciating that the appellant trust has otherwise fulfilled all the conditions prescribed for obtaining final approval.
2. The Honourable Ld. CIT(E) is not considering the adjournment request submitted before him against show cause notice and also not giving a proper opportunity of being heard, is an amount to a violation of the principles of natural justice.
3. The Honourable Ld. CIT(E) has erred in rejecting the application purely on technical grounds” Brief facts of the case are as under:
The assessee is charitable trust and filed application in form 10AB seeking approval under clause (ii) of the first proviso to subsection 5 of section 80G of the Act. The assessee was thus granted provisional approval by issuing form 10AC on 01/10/2021 to assessment year 2024-25. 2.1 The Ld.CIT(E) rejected the application due to wrong mentioning of the clause under 1st proviso 80(5) of the Act.
Aggrieved by the order of the Ld.CIT(E) the assessee is in appeal before this Tribunal.
The Ld.AR submitted that, the assessee being an old trust, it had to apply for renewal under section 80G(5)(iii) as against 80G(ii). He thus submitted that the registration u/s.12A is available to the assessee and relied on the decision of Coordinate Bench of this Tribunal in case of Rotry Charity Trust vs. CIT(E) Mumbai in vide order dated 09/01/2025 wherein identical issue was considered.
3 ITA 4808/Mum/2025; A.Y. N.A Shri Ramkumar Meghraj Tekariwal Baraganwala Charitable Trust On the contrary, the Ld.DR relied on the orders passed by the authorities below.
We have perused the submissions advance by both sides in the light of record placed before us.
It is noted that the assessee is admittedly an old trust having a valid registration under section 12A and 80G. 4.1 It is noted that while filing Form for final registration in Form 10AB has inadvertently mentioned the wrong section as sub-clause (b)(ii) of first proviso to subsection (5) of section 80G instead of clause (iii) of first proviso to subsection (5) of section 80G 4.2 From the perusal of provisions applicable to the facts of present case, in our considered view, there is merit in claim of the Id. AR that assessee has selected the wrong section code inadvertently while filing the application for final registration in Form 10AB 4.3 In view of these we remit the issue back to the file of Ld.CIT(E), with a direction to consider the application under Clause (iii) to first proviso to section 80G(5) of the Act, and to decide the application of the assessee for final approval as possible before the expiry of the provisional approval granted in order to enable the assessee to have the benefit of section 80G without any break. Accordingly the grounds raised by the assessee stands allowed for statistical purposes. In the result the appeal filed by the assessee stands allowed for statistical purposes.
4 ITA 4808/Mum/2025; A.Y. N.A Shri Ramkumar Meghraj Tekariwal Baraganwala Charitable Trust Order pronounced in the open court on 13/10/2025