NIRADHAR SEVA SADAN FOUNDATION,PANVEL vs. COMMISSIONER OF INCOME TAX EXEMPTION PUNE, PUNE

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ITA 1759/PUN/2026Status: DisposedITAT Pune30 July 2026AY 2025-20265 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the issue of Section 12A registration was already restored to the CIT(Exemption) in the assessee's own case. Therefore, the application for Section 80G approval should also be restored to the CIT(Exemption) for fresh adjudication.

What were the facts?

The assessee applied for regular approval under Section 80G(5) of the Income Tax Act. The CIT(Exemption) rejected the application because the assessee did not have valid registration under Section 12AB of the Act.

What were the issues?

Whether the application for 80G approval can be considered when the 12AB registration is pending adjudication, and if so, should it be restored to the lower authority.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 12AB,Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE

For Appellant: Shri Sachin N. Jaiswal (virtual)
For Respondent: Shri Amit Bobde, CIT-DR
Hearing: 30.07.2026Pronounced: 30.07.2026

PER ASTHA CHANDRA, JUDICIAL MEMBER : This appeal filed by the assessee is directed against the order dated 27.03.2026 of the Ld. CIT(Exemption), Pune rejecting the application for grant of regular approval u/s.80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

Tersely stated, the facts of the case as emanating from the record are that the assessee filed an application in Form No.10AB on 29.09.2025 for approval of the trust under clause (ii) of first proviso to sub section (5) of section 80G of the Act. Ld.CIT(Exemptions), Pune rejected the application for grant of approval u/s.80G(5) of the Act on the ground that the assessee is not having valid registration u/s.12AB of the Act by observing as under :

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“2. The application was carefully perused and considered along with its annexures. The conditions for approval under section 80G(5)(vi) of the Act are provided under clause (i) to (v) of section 80G(5) of the Income Tax Act, 1961. As per the condition vide clause (i) of section 80G(5) of the Income Tax Act, 1961, the approval is available only if the income of the institution or fund is not be liable to inclusion in its total income under the provisions of section 11 and 12 or clause (23AA) / clause (23C) of section 10 of the Income Tax Act, 1961. Further, exclusions for the said condition are detailed in clause (a), (b) and (c) of proviso to clause (i) of section 80G(5) of the Act. Therefore, the institution/fund is required to be regularly registered / approved either under section 12AB or 10(23C) of the Income Tax Act, 1961 or the institution / fund shall be a Regimental Fund or Non-Public Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependents. 3. In the instant case it is noticed that the assessee is neither registered u/s 12AB read with section 12A(1)(ac)(i)/12A(1)(ac) (ii) nor approved u/s 10(23C) read with clause (i) / (iii) of first proviso to the said section and the case is not covered under the exclusions provided vide proviso to clause (i) of section 80G(5) of the Act. The assessee is also not a Regimental Fund or Non-Public Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependents. In fact, the assessee's application u/s 12A(1)(ac) (ii) of the Act was rejected vide order dated 21.02.2026. Therefore, the condition prescribed under clause (i) of section 80G(5) of the Income Tax Act, 1961 is not fulfilled in this case, 4. In view of the above, the application under sub clause (B) of (iv) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 filed by the a ax Act, 1961 filed by the assessee is hereby rejected.”

3.

At the time of hearing before us, ld. Counsel for the assessee submitted that in assessee’s own case the Tribunal vide ITA No.1526/PUN/2026 order dated 23.07.2026 has already restored the issue of registration u/s.12A of the Act to the file of ld.CIT(Exemption), therefore, the application for grant of approval u/s.80G(5) deserves restoration. He accordingly prayed for restoring the issue of approval as well to the file of ld.CIT(Exemption) for afresh adjudication.

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4.

Ld. Departmental Representative on the other hand fairly conceded the request made by the ld. Counsel for the assessee.

5.

We have heard the rival submissions and perused the record placed before us. The sole issue in the instant appeal is against the rejection of application filed for grant of approval u/s.80G(5) of the Act. In this connection, at the time of hearing, ld. Counsel for the assessee drew the attention of the Bench to the order of Tribunal in ITA No.1526/PUN/2026 order dated 23.07.2026 demonstrating that the issue of registration u/s.12A of the Act stood restored to the file of ld.CIT(Exemption) for afresh adjudication. We have perused the order and find that the issue of registration u/s 12A of the Act in the assessee’s own case already stood restored to the file of the Ld. CIT(Exemption) by virtue of Tribunal order referred supra observing as follows :

“4. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper book furnished by the assessee. In this regard, we find that it is the sole request of Ld. Counsel of the assessee that if one last opportunity is provided to the assessee, he is in a position to furnish all the relevant desired information in support of application for registration before Ld. CIT, Exemption, Pune. 5. Considering the totality of the facts of the case and in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and restore the matter back to his file with a direction to decide the application for registration afresh and as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT, Exemption, Pune in this regard and to produce relevant documents/evidences, if any, in support of application for registration without taking any adjournment under any

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pretext, otherwise Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate orders as per law. Thus, the grounds raised by the assessee are allowed for statistical purposes.”

6.

Considering the same, we deem it proper to restore the issue of grant of approval u/s 80G of the Act also to the file of the Ld. CIT(Exemption). Ld.CIT(Exemption) who shall decide the issue of registration u/s.12A of the Act first and then dispose of the application pertaining to approval u/s.80G(5) of the Act in accordance with law. The grounds raised by the assessee are accordingly allowed for statistical purposes.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open Court on 30th July, 2026.

Sd/- Sd/- (R. K. PANDA) (ASTHA CHANDRA) VICE PRESIDENT JUDICIAL MEMBER पुणे Pune; दिन ांक Dated : 30th July, 2026 Satish

Digitally signed by Satish Kumar Madishetty Satish Kumar Madishetty Date: 2026.07.30 18:46:32 +05'30'

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आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to:

1.

अपील र्थी / The Appellant; प्रत्यर्थी / The Respondent 2. 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘B’ Bench, Pune ग र्ड फ ईल / Guard file. 5. आदेशानुसार/ BY ORDER,

// True Copy // Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune

S.No. Details Date Initials Designation 1 Draft dictated on 30.07.2026 Sr. PS/PS 2 Draft placed before author 30.07.2026 Sr. PS/PS Draft proposed & placed before the 3 30.07.2026 JM/AM Second Member Draft discussed/approved by Second 4 30.07.2026 AM/AM Member 5 Approved Draft comes to the Sr. PS/PS 30.07.2026 Sr. PS/PS 6 Kept for pronouncement on 30.07.2026 Sr. PS/PS 7 Date of uploading of Order 30.07.2026 Sr. PS/PS 8 File sent to Bench Clerk 30.07.2026 Sr. PS/PS Date on which the file goes to the Office 9 Superintendent 10 Date on which file goes to the A.R. 11 Date of Dispatch of order

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