SRI SAI SEVA SADAN,HYDERABAD vs. ITO,(EXEMPTION), HYDERABAD

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ITA 73/HYD/2026Status: DisposedITAT Hyderabad24 July 2026AY 2025-267 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that procedural lapses should not defeat substantive rights, especially for charitable trusts. It allowed the assessee to approach the CBDT for condonation of delay and restored the matter to the CIT(Exemption) to decide the application on merits after the CBDT's decision.

What were the facts?

The assessee, a charitable trust, applied for regular registration under section 80G but filed Form No. 10AB beyond the prescribed time limit. The CIT(Exemption) rejected the application solely on this ground without examining its merits.

What were the issues?

Whether the rejection of an application for 80G registration solely on the ground of delayed filing of Form 10AB is justified, and if the assessee can be granted an opportunity to seek condonation of delay.

Which sections of the Income-tax Act were involved?

Section 80G,Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ Bench, Hyderabad

Before: SHRI RAVISH SOOD, HON’BLE & SHRI MADHUSUDAN SAWDIA, HON’BLE

Hearing: 24.07.2026

आदेश / O R D E R PER MADHUSUDAN SAWDIA, AM:

This appeal is filed by Sri Sai Seva Sadan (“the assessee”), feeling

aggrieved by the order passed by the Learned Commissioner of Income

Tax (Exemption), Hyderabad, (“Ld. CIT(E)”) dated 12.11.2025 for the

A.Y. 2025-26.

2.

The Assessee has raised the following grounds of appeal:

ITA No.73/Hyd/2026 Sri Sai Seva Sadan :: 2 ::

1.

The learned CIT (Exemptions) erred in law and on facts in rejecting the application for approval under section 80G merely on the ground that Form No. 10AB was filed beyond the prescribed time limit.

2.

The learned CIT (Exemptions) failed to appreciate that the delay in filing Form No. 10AB was due to bona fide reasons, namely lack of awareness of procedural changes and transition of the statutory auditor, and was neither deliberate nor intentional.

3.

The learned CIT (Exemptions) erred in not exercising the powers judiciously, especially when the genuineness of the activities of the appellant trust was never doubted OR disputed.

4.

The rejection is bad in law, as it places procedural compliance above substantive compliance, contrary to the settled principles that procedural provisions are directory in nature when no prejudice is caused to the Revenue.

5.

The learned CIT (Exemptions) failed to consider that the appellant trust was earlier enjoying valid approval under section 80G and continues to satisfy all the conditions laid down under section 80G(5) of the Act.

6.

The learned CIT (Exemptions) ought to have condoned the delay in filing Form No. 10AB in the interest of justice, equity, and fair play, particularly in the absence of any allegation of misuse, fraud, OR non- genuine activities.

7.

The order passed is arbitrary, unreasonable, and contrary to the object of the Act, which seeks to encourage genuine charitable activities and donations thereto.

8.

The appellant craves leave to add, alter, amend, OR withdraw any of the above grounds at the time of hearing of the appeal.

3.

The brief facts of the case are that the assessee is a charitable

trust, filed an application for grant of regular registration under section

80G of the Income-tax Act, 1961 (“the Act”) in Form No. 10AB on

22.05.2025. During the course of proceedings under section 80G(5) of

the Act, the assessee, in response to the notices issued by the Ld. CIT(E)

dated 07.08.2025 and 26.09.2025, furnished the requisite details and

information called for by the Ld. CIT(E). After considering the

submissions of the assessee, the Ld. CIT(E), by order in Form No. 10AD

dated 12.11.2025, rejected the application for grant of regular

ITA No.73/Hyd/2026 Sri Sai Seva Sadan :: 3 :: registration under section 80G of the Act. It was observed by the Ld.

CIT(E) that, in terms of the amended provisions introduced by the

Finance Act, 2020, an application in Form No. 10AB was required to be

filed at least six months prior to the expiry of the provisional registration

or within six months from the commencement of its activities, whichever

was earlier. However, since the assessee had filed Form No. 10AB only on

22.05.2025, the application was held to be time-barred. Accordingly, the

Ld. CIT(E) rejected the application solely on the ground of delay in filing

Form No. 10AB, without examining the assessee’s eligibility for grant of

registration on merits.

4.

Aggrieved by the order of the Ld. CIT(E), the assessee is in appeal

before this Tribunal. The Learned Authorised Representative (“Ld. AR”)

fairly conceded that there was a delay in filing Form No. 10AB before the

Ld. CIT(E). However, he submitted that the assessee-trust is engaged in

genuine charitable activities for the benefit of society at large. He further

submitted that, in the interest of substantial justice, one opportunity may

be granted to the assessee to approach the Central Board of Direct Taxes

(“CBDT”) by filing an application under section 119(2)(b) of the Act

seeking condonation of the delay in filing Form No. 10AB. He, therefore,

prayed that the matter may be restored to the file of the Ld. CIT(E) with a

direction to decide the application for regular registration on merits after

the application for condonation of delay is decided by the CBDT.

ITA No.73/Hyd/2026 Sri Sai Seva Sadan :: 4 ::

5.

Per contra, the Learned Departmental Representative (“Ld. DR”)

relied upon the order of the Ld. CIT(E).

6.

We have heard the rival submissions and perused the material

available on record. There is no dispute that the application in Form No.

10AB has been filed beyond the period prescribed under the provisions of

the Act. The Ld. AR has also fairly admitted the delay in filing the

application. Accordingly, the Ld. CIT(E) rejected the application solely on

the ground that the same was barred by limitation, without examining the

assessee’s claim for registration on merits. We further find that an

identical issue had come up for consideration before this Tribunal in the

case of Yug Nirman Yojana Gayatri Pariwar Trust Vs. CIT (Exemptions) in

ITA No. 494/Hyd/2025, vide order dated 06.08.2025, wherein this

Tribunal in para nos. 9 and 10 of the order has held as under:

9.

We have heard the Ld. Departmental Representative and perused the material available on record. Admittedly, the assessee trust was granted provisional registration under Section 80G and had filed “Form 10AB” for regular registration on 14.08.2024. As observed by us hereinabove, the CBDT, vide Circular No. 7/2024 dated 25.04.2024, had extended the “due date” for filing such application till 30.06.2024, therefore, there can be no denying the fact that the application filed by the assessee trust was beyond the prescribed time limit.

10.

Although the delay in filing the application for regular registration under Section 80G in “Form 10AB” is procedural in nature, but we are afraid that the provisions of the Act read alongwith the CBDT Circular No. 7/2024 (supra) are clear on the prescribed time limit in so far the filing of an application for regular registration in “Form 10AB” under Section 80G of the Act is concerned. However, we are at the same time of a firm conviction that procedural lapses should not defeat the substantive rights, particularly in matters of charitable trusts seeking exemptions. Although there is no explicit provision under the Incometax Act or rules for condonation of delay in filing of “Form 10AB” for regular registration under Section 80G of the Act, but the assessee trust remains at liberty to approach the CBDT for condonation under Section 119(2)(b) of the Act. Thereafter, the CIT(Exemptions) is directed to take up and dispose of the application

ITA No.73/Hyd/2026 Sri Sai Seva Sadan :: 5 :: filed by the assessee trust for regular registration under Section 80G of the Act, on merits, in accordance with law, and after providing due opportunity of being heard to the assessee trust. 7. On perusal of the above, the Tribunal noticing that the application in

Form No. 10AB had been filed beyond the prescribed period, granted

liberty to the assessee to approach the CBDT by filing an application

under section 119(2)(b) of the Act seeking condonation of the delay. The

Tribunal further restored the matter to the file of the Ld. CIT(E) with a

direction to decide the application for grant of regular registration on

merits, in accordance with law, after the disposal of the condonation

application by the CBDT. The facts of the present case being identical to

those considered by this Tribunal in the case of Yug Nirman Yojana

Gayatri Pariwar Trust Vs. CIT (Exemptions) (supra), we respectfully follow

the same. In our considered opinion, the ends of justice would be met if

similar relief is granted to the present assessee. Accordingly, we set aside

the impugned order of the Ld. CIT(E) and restore the matter to his file

with a direction to take up and dispose of the assessee’s application for

grant of regular registration under section 80G of the Act on merits, in

accordance with law, after providing adequate opportunity of being heard

to the assessee, subject to the outcome of the application to be filed by

the assessee before the CBDT under section 119(2)(b) of the Act seeking

condonation of the delay in filing Form No. 10AB. The assessee shall be

at liberty to approach the CBDT by filing an application under section

119(2)(b) of the Act seeking condonation of the delay in filing Form No.

10AB. Upon disposal of such application by the CBDT, the Ld. CIT(E) shall

ITA No.73/Hyd/2026 Sri Sai Seva Sadan :: 6 :: proceed to adjudicate the assessee’s application for grant of regular

registration under section 80G of the Act on its own merits and in

accordance with law, without being influenced by any observations made

in this order.

8.

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

purposes.

Order pronounced in the open Court on 24th July, 2026. Sd/- Sd/- (रिवश सूद) (मधुसूदन साविडया) (RAVISH SOOD) (MADHUSUDAN SAWDIA) �ाियक सद� /JUDICIAL MEMBER लेखा सद�/ACCOUNTANT MEMBER

Hyderabad, dated 24th July, 2026. TLN

आदेशकी �ितिलिप अ�ेिषत/ Copy of the order forwarded to: िनधा�रती/The 1 : SRI SAI SEVA SADAN 6-3-668/10/20, DURGA NAGAR COLONY, Assessee PANJAGUTTA, HYDERABAD-500082, TELANGANA राज�/ The Revenue 2 : ITO, (EXEMPTION), AAYKAR BHAWAN, OPPOSITE LB STADIUM, BASHEER BAGH HYDERABAD-500004, TELANGANA 3 The Principal Commissioner of Income Tax, Hyderabad. िवभागीय�ितिनिध, आयकर अपीलीय अिधकरण, हैदराबाद / DR, ITAT Hyderabad. 4 गाड�फ़ाईल / Guard file 5

ITA No.73/Hyd/2026 Sri Sai Seva Sadan :: 7 ::

आदेशानुसार / BY ORDER Digitally signed by TUMMALACHARLA TUMMALACHARLA LAKSHMI NARAYANA DN: cn=TUMMALACHARLA LAKSHMI LAKSHMI NARAYANA, c=IN, o=INCOME TAX APPELLATE TRIBUNAL, ou=INCOME TAX NARAYANA APPELLATE TRIBUNAL, CHENNAI BENCH Date: 2026.07.24 15:28:26 +05'30' Sr. Private Secretary ITAT, Hyderabad

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