PRADNYASHODH SEWA SAMITI FOUNDATION,PUNE vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE

We have heard both the parties and perused the record. In this case, the assessee had filed an application in Form No. 10AB for registration u/s 80G(5) of the Act on 29.09.2025. The assessee’s application has been rejected by the Ld. CIT(E). The relevant paragraph No. 5 of the Ld. CIT(E) is reproduced as under : “5. Without prejudice to the above, it is seen that the date of expiry of provisional approval under section 80G(5)(iv) of the Act in the instant case is 31/03/2025. As per the provisions of clause (iii) of first proviso to section 80G(5) of the Act, where a trust or institution has been

Thus, in this case, the Ld. CIT(E) has dismissed the appeal of the assessee on account of delay in filing of the application. Section 80G(5) of the Act is a beneficial provision. It is also observed that by Finance Act, 2024 an amendment has been introduced in the form of proviso to section 80G(5) of the Act. The relevant amendment is reproduced here as under : “[(iv) 17[***] where activities of the institution or fund have— (A) not commenced, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said approval is sought; (B) commenced, at any time after the commencement of such activities:]”

Thus, it can be observed that by the amendment brought in Finance Act, 2024, Parliament in its wisdom has allowed assessee to file application for registration u/s 80G “at any time” after the commencement of activities. This amendment explains the intention of Parliament to allow assessee to file an application at any time after commencement of activities. Therefore, we set aside the order of the Ld. CIT(E) to Ld. CIT(E) with a direction to consider the application on merits and decide the case on merits. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.

In the result, the appeal of the assessee is allowed for statistical purpose.