PRAVAT,GOPALNAGAR, PURULIA vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), KOLKATA, KOLKATA

Erroneous Rejection on Technical Grounds: The Ld. Commissioner of Income Tax (Exemption), Kolkata [hereafter "CIT(E)"] erred in law and on facts by rejecting the application filed in Form No. 10AB under Section 80G(5) (ii) of the Income Tax Act, 1961 solely on the grounds of a procedural delay. The Ld. CIT(E) failed to appreciate that the prescribed time limits in administrative circulars should be interpreted to advance the cause of justice rather than to defeat the substantive rights of a charitable institution.

Consistency with Registration under Section 12AB of the Income Tax Act, 1961: The Ld. CIT(E) failed to consider that the same authority had already granted registration to the Appellant Trust under Section 12AB(1)(b) of the Income Tax Act, 1961, vide Unique Registration Number: AABTP6220G25KL01 dated 17/03/2026 for the period from AY 2027-28 to 2036-37. Since the Trust's charitable status and the genuineness of its activities were accepted for the purpose of Section 12AB just two days prior to the 80G of the Income Tax Act, 1961 rejection order dated 19/03/2026, the rejection of 80G of the Income Tax Act, 1961 approval on purely technical grounds is contradictory and legally unsustainable.

Failure to Consider Merits and Genuineness: The Ld. CIT(E) erred in rejecting the application "without going into the merits" despite acknowledging that the Appellant had submitted various details and supporting documents for verification along with the application. The Ld. CIT(E) should have evaluated the genuineness of the activities and the fulfillment of conditions as per the objects of the Trust, which include advancing education and providing medical relief.

Hyper-technical Interpretation of CBDT Circulars: The Ld. CIT(E) erred in strictly applying the deadline of 30.06.2024 as per CBDT Circular No. 07/2024 for an application intended for Assessment Year 2027-28 onwards. The Appellant contends that as long as the registration under Section 12AB of the Income Tax Act, 1961 is active, the incidental benefit of Section 80G of the Income Tax Act, 1961 should not be denied to a genuine charitable trust merely due to a delay in filing a procedural form.

Lack of Opportunity and Hardship: The Ld CIT(E) failed to appreciate the practical difficulties and hardships faced by the Trust, which has been functioning since 2007 and was previously granted 80G of the Income Tax Act, 1961 approval as far back as 2014. The rejection of 80G of the Income Tax Act, 1961 approval based on a "mandatory" time limit where the authority claims no power to condone delay is an over-restricted application of the law that unfairly penalizes a charitable organization."

Brief facts of the case are that the appeal arises from an application filed electronically by the assessee in Form No. 10AB u/s 80G(5)(ii) of the Act on 28.09.2025. The assessee had previously been granted provisional approval u/s 80G(5)(iv) of the Act. Subsequently, the Ld. CIT(E) initiated verification proceedings of the application. The Ld. CIT(E) observed that the extended due date for filing the application in Form No. 10AB was 30.06.2024 as per the CBDT Circular No. 07/2024, and the assessee had failed to file the application within this stipulated time limit. The Ld. CIT(E) noted that the time limits prescribed u/s 80G(5)(ii) of the Act are mandatory and that there is no power to condone the delay in filing the application for approval u/s 80G of the Act, therefore, he rejected the application as non- maintainable as the same was filed beyond the time limit prescribed and without going into the merits of the case.

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

Rival contentions were heard and the submissions made have been examined. It was submitted by the Ld. AR that the trust has been in existence since 20/09/2007 and could not file the application within the extended date. The approval under section 80G of the Act was said to have been granted since 2014 and the rejection was done suo motu. It was submitted that the assessee was seeking approval for assessment year 2027-28 onwards and had applied in the year 2025-26 and was seeking approval from the next F.Y. The Ld. DR argued that the order of the Ld. CIT(E) may be upheld as the assessee did not file the required documents before him and the appeal may be dismissed.

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). The Bench was of the view that the Ld. CIT(E) had denied the claim of exemption u/s 80G(5)(ii) of the Act on account of delayed filing of application in Form No. 10AB u/s 80G(5) of the Act by the assessee. Therefore, in the interest of justice and fair play, it was considered by the Bench that the assessee may be allowed another opportunity to ITA No(s). 1418/KOL/2026 Assessment Year(s) 2027-28 present its case. The assessee had sought approval for the next financial year from AY 2027-28 onward and the Ld. CIT(E) had also granted the regular registration/approval under section 12AB of the Income Tax Act, 1961 from AY 2027-28 onwards, therefore, on the same facts, the approval u/s 80G(5) also ought to have been allowed. Hence, the order of the Ld. CIT(E) is set aside and the matter is remanded to him for deciding the application afresh after granting an opportunity of being heard to the assessee and seeking the reply from the assessee in respect of the queries raised and thereafter decide the application in accordance with law. Hence, all the grounds of appeal are partly allowed for statistical purpose.

In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 29th July, 2026. [Yogesh Kumar US] [Rakesh Mishra] Judicial Member Accountant Member Dated: 29.07.2026 Bidhan (Sr. P.S.)

CIT-

CIT(DR), Kolkata Benches, Kolkata.

Guard File. //// By order