INNERWHEEL CLUB OF BOMBAY CENTRAL CHARITABLE TRUST,MUMBAI vs. INCOME TAX OFFICER (EXEMP)1(3), MUMBAI

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ITA 7656/MUM/2026Status: DisposedITAT Mumbai10 July 2026AY 2026-274 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the matter should be remanded back to the CIT(E) to condone the delay and decide the application afresh in accordance with law, following the CBDT circular.

What were the facts?

The assessee's application for approval under Section 80G(5) was rejected by the CIT(Exemptions) for being filed beyond the prescribed time limit. The assessee argued that a CBDT circular allowed for condonation of delay in such cases.

What were the issues?

Whether the delay in filing the application for 80G approval can be condoned by the authorities in light of the CBDT circular, and if the CIT(E) had the jurisdiction to do so.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH

Before: SHRI AMIT SHUKLA & SHRI ARUN KHODPIA

For Appellant: Shri Samir Shah
For Respondent: Shri Ajay Soneji, SR DR
Hearing: 10/07/2026Pronounced: 10/07/2026

आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 27.06.2026 passed by ld. Commissioner of Income Tax (Exemptions) rejecting the assessee’s application for approval u/s.80G(5).

2 ITA No.7656/Mum/2026 Innterwheel Club of Bombay Central Charitable Trust 2. Before us ld. Counsel informed that approval u/s. 12A has already been granted vide order dated 27/06/2026 however, the application for 80G has been rejected on the ground that it is filed beyond time and there is no jurisdiction to condone the delay. However, ld. Counsel submitted that there is a CBDT Circular No.6 of 2026 wherein CBDT has given following direction / clarification.

“Section 80G of the Income-tax Act, 1961 (the Act") provides for deduction in respect of donations made to certain funds and institutions for availing approval under clause (ii) of the first proviso to section 80G(5) of the Act, a fund or institution approved under section 80G(5) and whose approval is due to expire, is required to furnish an application in Form No. 10AB electronically, at least six months prior to expiry of the said period 2. Representations have been received in the Board from certain funds and institutions whose approval was expiring on 31.03.2026 and who could not furnish Form No 10AB for seeking approval under clause (ii) of the first proviso to section 80G(5) of the Act within the due date of 30.09.2025 It has been represented that the delay in furnishing the prescribed application was attributable to bona fide reasons and other circumstances resulting in genuine hardship to the funds or institutions in terms of receipt of donations 3. The matter has been examined by the Board. In order to mitigate genuine hardship to such funds and institutions, the Central Board of Direct Taxes, in exercise of the powers conferred under section 119(2)(b) of the Income Tax Act, 1961 read with section 536/27 of Income Tax Act, 2025 hereby condones the delay in filling Form No. 10AB, where the prescribed application in Form No.10AB has been furnished

3 ITA No.7656/Mum/2026 Innterwheel Club of Bombay Central Charitable Trust electronically between 01.10.2025 to 31.03.2026. The jurisdictional Principal Commissioner of Income tax or Commissioner of Income tax are authorized to dispose of such applications on merits and pass an order on or before 31-12 2026 4. Further, where an application in Form No. 10AB filed electronically between 01.10.2025 to 31.03.2026 has been rejected as on date of issue of this circular solely on the ground that it was furnished beyond the prescribed time limit of 30.09. 2025, the delay shall be deemed to have been condoned in such cases. The jurisdictional Principal Commissioner of Income-tax or Commissioner of Income-tax are authorized to dispose of such applications on merits and pass an order on or before 31.12.2026.”

3.

In line of this direction given by the CBDT, the matter is remanded back to the file of the ld. CIT(E) to condone the delay and decide the application afresh in accordance with law. With this direction, appeal of the assessee is partly allowed for statistical purposes.

4.

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

Order pronounced on 10th July, 2026.

Sd/- Sd/- (ARUN KHODPIA) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 10/07/2026 KARUNA, sr.ps

4 ITA No.7656/Mum/2026 Innterwheel Club of Bombay Central Charitable Trust

Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, //True Copy//

(Asstt. Registrar) ITAT, Mumbai

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