MAHILA SNEHASAMVARDHAK SAMAJ WAI,WAI vs. CIT EXEMPTION PUNE, PUNE

The Ld. AR submitted that the assessee is a charitable trust. However, the Ld. CIT(E) dismissed the application filed by the assessee for approval u/s 80G(5) of the Act as it was filed incorrect sub-clause. The Ld. AR submitted that the assessee may be given one more opportunity.

We have heard both the parties and perused the records. In this case, the assessee had received provisional approval u/s 80G(5) of the Act on 22.06.2022. Therefore, the assessee was required to file application before the Ld. CIT(A) within six months of expiry of provisional approval or within six months of commencement of its activities, whichever is earlier. In this case, the assessee had filed application for registration u/s 80G(5) of the Act in Form No. 10AB on 30.09.2025. The assessee has received provisional approval on 22.06.2022 for the period 22.06.2022 to AY 2025-26. As per fact recorded by the Ld. CIT(E) in the order in para 3, the provisional registration was expiring on 31.03.2025. The assessee has admittedly filed application in Form No. 10AB on 30.09.2025. Admittedly, the provisional approval was getting over on 31.03.2025.

It is observed that on identical facts ITAT Mumbai in the case of Bombay Patel Welfare Society Vs. Commissioner of Income-tax (Exemptions) [2026] 188 taxmann.com 343 (Mumbai - Trib.) [03-07-2026], held as under : Quote, “16. In the present case, the assessee was already holding provisional approval under section 80G(5), and there is nothing in the impugned order to indicate that the delayed filing was accompanied by any deliberate suppression, contumacious conduct or attempt to obtain an unintended benefit. The rejection of the application without examination of the assessee's substantive eligibility would, in the circumstances, result in the charitable institution being denied an adjudication on merits solely on account of a procedural lapse. 17. We are, therefore, of the considered view that the delay in filing Form No. 10AB deserves to be condoned and the application requires examination on merits in accordance with the statutory conditions governing approval under section 80G.” Unquote.

Respectfully following the decision of ITAT Mumbai (supra), we set aside the order u/s 80G(5) of the Act to the Ld. CIT(E) for de-novo adjudication. The Ld. CIT(E) shall provide opportunity of the hearing to the assessee. The assessee shall file all the necessary documents before the Ld. CIT(E). Accordingly, the grounds raised by the assessee are allowed for statistical purpose.

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