LAKSHH FOUNDATION,MOHALI vs. CIT(EXEMPTIONS), CHANDIGARH

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ITA 1419/CHANDI/2025Status: DisposedITAT Chandigarh03 August 2026AY 2025-263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the impugned order and restored the issue of approval back to the CIT(Exemption) for fresh adjudication. The assessee was directed to plead and prove its case forthwith, considering the principles of natural justice.

What were the facts?

The assessee, Lakshh Foundation, was granted provisional approval under Section 80G(5)(iii) but its application for regular approval was rejected by the CIT(Exemption) for being filed beyond the statutory time limit. The assessee argued that it was not given an effective opportunity of hearing and sought remand.

What were the issues?

Whether the application for approval under Section 80G(5)(iii) was filed within the prescribed time limit and if the assessee was granted a proper opportunity of hearing.

Which sections of the Income-tax Act were involved?

Section 80G(5)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application as filed by the assessee seeking approval u/s 80G(5)(iii) vide impugned order dated 04.09.2025 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. 2. Upon perusal of impugned order, it could be seen that the assessee was granted provisional approval on 28.02.2023 up-to AY 2025-26 under clause (iv) of first proviso to sub-section (5) of Sec.80G.

As per the extant provisions, such provisionally registered assessee was required to file the application at least 6 months prior to expiry of period of provisional approval or within 6 months of commencement of its activities, whichever is earlier. The assessee had commenced its activities during FY 2023-24 and thus, the application was held to be not filed within the statutory time limit as well as extended time limits as provided by CBDT. The only prayer of Ld. AR is that the assessee was granted provisional approval earlier on the same facts and no effective opportunity of hearing was granted to the assessee to explain its case. The Ld. AR also sought benefit of various subsequent Circulars of CBDT to support its application. On these facts, Ld. AR sought remand back of the matter. 3. Keeping in mind the principles of natural justice and in view of the fact that the assessee is a charitable trust, we accept the prayer of Ld. AR. Accordingly, the impugned order is set aside and the issue of approval stand restored back to Ld. CIT(E) for fresh adjudication with a direction to the assessee to plead and prove its case forthwith. 4. The appeal stands allowed for statistical purposes. Order pronounced on 03rd August, 2026

-Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 03-08-2026

आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

ASSISTANT REGISTRAR

ITAT CHANDIGARH

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