AUROVALLEY ASHRAM SOCIETY,DEHRADUN vs. CIT (EXEMPTION), LUCKNOW

ITA No.212/DDN/2026 AUROVALLEY ASHRAM SOCIETY, DEHRADUN

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “DB” NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No.212/DDN/2026 Assessment Year: 2025-26 AUROVALLEY ASHRAM SOCIETY, Vs. CIT (EXEMPTIONS), Rishidwar, Raiwala, C.R. Building-ITO, Dehradun, Uttarakhand 249205. I.P. Estate, New Delhi, PAN No.AAATA1726H Delhi 110002. Appellant Respondent

Assessee by None Revenue by Shri Amar Pal Singh, Sr. DR (VC)

Date of hearing: 24.06.2026 Pronouncement on 03.07.2026 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. This appeal arises from order dated 09.03.2026, passed by Ld. CIT(Exemptions), Lucknow, u/s 80G(5) of the Income Tax Act, 1961 (hereafter as “the Act”). In this case, the application of the assessee has been rejected on account of delayed in filing of Form 10AB.

1.1 The aggrieved assessee has approached the ITAT with two grounds of appeal which challenge this action of Ld. CIT(Exemption). On the last date of hearing, none appeared on behalf of the assessee, but it was decided to proceed ahead with the adjudication with the help of Ld. DR, 1

ITA No.212/DDN/2026 AUROVALLEY ASHRAM SOCIETY, DEHRADUN who was requested to assist the Bench in going through the assessee’s submissions.

“That in accordance with clause (iii) of the first proviso to section 80G(5), the appellant was required to file Form No. 10AB for grant of regular approval, However, owing to lack of awareness regarding the newly introduced procedural requirements and amendments governing the transition from provisional approval to regular approval, the appellant could not file the said form within the prescribed time, subsequently, Form No. 10AB was filed on 26.09.2025 seeking regular approval under section 80G(5). The delay was purely inadvertent, bona fide, and procedural in nature, without any intention to disregard the provisions of law. That the learned Commissioner of Income Tax (Exemption), Lucknow, vide order dated 09.03.2026, rejected the appellant's application solely on the ground that Form No. 10AB had not been filed within the prescribed time limit and without considering the past history and the facts of the case and no defect had been identified. In the accounts and charitable activities and rejection is only in routine manner and therefore is not maintainable. It is specifically submitted that the impugned order does not contain any adverse finding regarding the charitable objects of the appellant, the genuineness of its activities, the manner of application of its funds, or its eligibility for approval under section 80G. The rejection has been made exclusively on account of delay in filing the application, without examining the merits of the case.” The Ld. DR also pointed out certain coordinate bench orders relied upon by the assessee.

2.1 On his part, the Ld. DR relied on the impugned order and brought to our notice the extant provisions where the timely filing of Form 10AB has been mandated. 2

ITA No.212/DDN/2026 AUROVALLEY ASHRAM SOCIETY, DEHRADUN 3. We have considered the submissions and have gone through the records before us. We find that there is a considerable body of judicial literature through which it is now well settled that delay in filing Form 10AB is to be condoned, since it is a directory condition and not mandatory. In this regard, the case of Cartrade Foundation reported in 184 taxmann.com 159 (Mumbai – Trib.) [2026], deserves to be mentioned and relevant portion from the headnotes of the same extracted for reference:

“At the outset, it is pertinent to note that the first proviso to section 12A(1)(ac) grants the power to the Principal Commissioner or Commissioner to condone the delay in filing the application if there is reasonable cause for not filing the application within the prescribed time. From the perusal of section 10A(8), which was under consideration before the Supreme Court in Principal Commissioner of Income-tax v. Wipro Lid 120221 140 Taxman 221/288 Taxman 491/446 ITR 1(SC), it is found that no such power has been granted to the Assessing Officer to condone the delay in furnishing the declaration, declaration as required, beyond the due date for furnishing the return of income. Thus, in such circumstances, the Supreme Court in Wipro Ltd. (supra) held that the requirements of section 10A(8) are mandatory in nature. However, from a plain reading of the provisions of section 12A(1)(ac), it is evident that the statute authorizes the Commissioner (Exemption) to condone the delay in filing Form No. 10AB upon being satisfied regarding the existence of reasonable cause for the delay [Para 10] In the present case, the provisional registration in Form No. 10AC was granted to the assessee on 31-12-2021, valid up to the assessment year 2024-25. Since as per the provisions of section 12A(1)(ac)(iii), in case where the Trust or institution has been provisionally registered under section 12A18, the application for regularization of provisional registration is required to be made by the assessee at least six months prior to the expiry of the provisional registration or within six months of commencement of its activities, whichever is earlier. The Commissioner (Exemption), on the basis that the assessee should have filed an application in Form No. 10AB for regularization of provisional

ITA No.212/DDN/2026 AUROVALLEY ASHRAM SOCIETY, DEHRADUN registration, latest by the end of September 2023, rejected the application filed by the assessee in Form No. 10AB on the ground of delay. As noted, as per the assessee, the delay occurred is purely inadvertent and unintentional, caused due to lack of awareness of the newly introduced procedural requirement, on the basis that Trustees were not aware of the amended provisions requiring timely refiling of Form No. 10AB for conversion of provisional approval into final registration. It is found that prior to the insertion of the proviso to section 12A(1)(ac)(iii), the CBDT was exercising the power for condonation of delay in filing Form No. 10A/10A1B. In order to avoid and mitigate genuine hardship in cases of delayed filing of Form No. 10A/10AB, the CBDT vide Circular No.7 of 2024 dated 25-4-2024 extended the timeline for filing Form No.10A/10AD in exercise of powers conferred under section 119. After the insertion of the proviso section 12A(1)(ac) by the Finance (No. 2) Art 2024, with effect from 1-10-2024, the Commissioner (Exemption) has been empowered to condone the delay in filing the application. [Para 11] It is found that, in the present case, reasons stated by the assessee for seeking condonation of delay in filing Form No. 10AB fall within the parameters for grant of condonation laid down by the Supreme Court in the case of Collector, Land Acquisition v. Mst. Katiji (1987 taxmann.com 1072 (SC). It is well established that rules of procedure are handmaid of justice. When substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred. It is evident from the record that in the present case, the assessee did not stand to benefit from the late filing of Form No. 10AB for the regularization of provisional registration. It is further undisputed that the assessee filed Form No. 10AB on 28-3-2025 for the regularization of provisional registration. [Para 12] Having considered the submissions and the reasons stated by the assessee before the Commissioner (Exemption), it is held that the assessee has proved sufficient cause for not filing Form No. 10AB within the prescribed time before the Commissioner (Exemption). Accordingly, the said delay should be condoned [Para 13]” In another case- Saarth Pratishthan reported in [2026] 185 taxmann.com 331 (Mumbai – Trib.), the following extract from the headnotes is relevant: -

ITA No.212/DDN/2026 AUROVALLEY ASHRAM SOCIETY, DEHRADUN “On the issue in the present case, the explanation offered by the assessee regarding delay in filing of Form 10AB is found justifiable and there is no allegation that there was any deliberate attempt by the assessee-trust to delay the filing of Form 10AB. It is also undisputed that the assessee-trust possesses provisional registration under section 12AB, thus the bona-fide of the assessee-trust could not be doubted. The Commissioner (Exemptions) has the authority vested to grant registration by exercising discretion judiciously and to advance the cause of justice by condoning the delay and examining the application on merits. Since there was no observation by the Commissioner (Exemptions) giving any adverse inference qua the objects and activities of the assessee-trust, the rejection of the assessee's applications, only on the solitary ground of delay in filing of appeal, without any finding that delay was deliberately attempted by the assessee would be extraneous and against the principle of natural justice. In view of aforesaid facts and circumstances and judicial precedents, the impugned rejection orders denying the registration under section 12AB and section 80G are unsustainable, the delay in filing of Form 10AB is condoned and the Commissioner (Exemptions) is directed to re-consider the application of the assessee-trust in Form 10AB for registration under section 12AB and approval under section 80G on merits. The appeal of assessee is restored back to the file of the Commissioner (Exemptions) to decide the application of assessee in Form 10AB afresh on merits and also reconsider the application for approval under section 80G, which is rejected under usual corollary, merely as a consequence to the rejection of registration under section 12AB. The assessee may, be afforded with reasonable opportunity of being heard during the set-aside proceedings. [Para 11]” Considering the totality of facts and circumstances of this case, the impugned order is set aside and this matter is remanded back to the file of Ld. CIT(Exemption) for considering the case on merits.

Order pronounced in the open court on 03.07.2026

Sd/- Sd/- (ANUBHAV SHARMA) (SANJAY AWASTHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 03.07.2026

ITA No.212/DDN/2026 AUROVALLEY ASHRAM SOCIETY, DEHRADUN *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI