GENESIS EDUCATIONAL AND CHARITABLE TRUST,KOLKATA vs. INCOME TAX OFFICER 1(1) EXEMPT, KOLKATA

For that the Ld CIT(E) was not justified in rejecting the 80G application wrongly interpreting the provisions of Section 80G(iii).

For that since the assessee trust is an old entity the clause "within six months from commencement of its activities" would not apply its strict sense and as such the rejection order is bad in law.

For that on the facts and in the circumstances of the case, the learned Commissioner of Income Tax (Exemption) erred in law and on facts in rejecting the application filed by the appellant in Form No. 10AB under Section 80G(5) of the Income-tax Act, 1961 as non-maintainable on the ground of delay.

For that the learned CIT(E) failed to appreciate that the provisions of Section 80G(5)(iii) of the Income-tax Act, 1961 are directory in nature and not mandatory, and therefore the application could not have been rejected solely on the ground of delay without examining the merits.

For that the learned CIT(E) failed to appreciate that the Central Board of Direct Taxes (CBDT) has been vested with powers under Section 119 of the Income-tax Act, 1961 to relax procedural requirements and that such beneficial provisions should be construed liberally in favour of the assessee.

For that the learned CIT(E) erred in not considering that the appellant is a charitable institution carrying out genuine activities and is otherwise eligible for approval under Section 80G, and therefore rejection on mere technical grounds defeats the object of the statute.

For that the learned CIT(E) failed to appreciate that procedural delays should not override substantive justice, especially when no adverse finding has been recorded regarding the genuineness of the activities of the appellant.

For that the appellant craves leave to add, alter or deduce any ground of appeal raised above at the time of hearing."

Brief facts of the case are that the assessee was previously granted provisional approval u/s 80G(5)(iv) of the Act which was valid from 30.06.2022 to AY 2025-26. Subsequently, the assessee filed an application seeking regular approval u/s 80G(5)(ii) of the Act electronically on 22.09.2025 in Form No. 10AB. The Ld. CIT (Exemption) observed that the assessee had already commenced its activities and was therefore required to file the application u/s 80G(5)(iii) of the Act within the extended time limit of 30.06.2024. He also observed that the application was filed beyond the mandatory prescribed and extended time limit, therefore, the Ld. CIT (Exemption) held that the delay could not be condoned. Accordingly, the Ld. CIT (Exemption) rejected the ITA No(s). 1457/KOL/2026 Assessment Year(s) 2025-26 Genesis Educational And Charitable Trust. application for having been filed beyond the prescribed time limit and also dismissed the claim of the assessee.

Aggrieved with the order of the Ld. CIT (Exemption), the assessee has filed the appeal before the Tribunal.

Rival contentions were heard and the submissions made have been examined.

We have heard the rival contentions and have also gone through the facts of the case. It was submitted by the Ld. AR that the assessee is an old trust and therefore, the condition of filing the application within 6 months from the commencement of activities could not be applied and therefore, there was no justification for dismissing the application on account of delay. The Ld. DR relied upon the order of the Ld. CIT(E) and requested that the same may be upheld. We have considered the submissions made, gone through the facts of the case and perused the record and the order of the Ld. CIT(E). In the interest of justice and fair play, it was considered imperative by the Bench that the assessee may be granted another round of opportunity to file its submission in response to the notice issued by the Ld. CIT (Exemption). Hence, the order of the Ld. CIT (Exemption) is hereby set aside and the matter is remanded to him for deciding the application of the assessee afresh after granting an opportunity of being heard to the assessee and thereafter to consider the application in accordance with law for grant of registration u/s 80G of the Act. For statistical purposes, the grounds of appeal are partly allowed.

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

CIT-

CIT(DR), Kolkata Benches, Kolkata.

Guard File. //// By order