ROTARY BENGALURU LAKE WORLD CHARITABLE TRUST,BANGALORE vs. COMMISSIONER OF INCOME TAX(EXEMPTIONS), BANGALORE

The assessee has raised the following grounds of appeal:

At the outset, the ld. A.R. of the assessee submitted that there is a delay of 37 days in filing the appeal before this Tribunal. The ld. A.R. of the assessee also drew our attention on an application for the condonation of delay dated 7.10.2025 which is reproduced below for ease of reference and record:

The main reason cited for delay in filing the appeal was solely attributable to the unawareness of proper appellate remedy available upon rejection of the application u/s 80G of the Act. The assessee instead of filing an appeal before the Tribunal, under a genuine and mistaken belief, re-applied for registration by filing Form 10AB on 7.8.2025. It was only after obtaining professional advice, the assessee filed the present appeal with the delay of 37 days.

Brief facts of the case are that the assessee trust is registered u/s 12A(1)(ac)(iii) of the Act on 27.2.2023 vide Unique Registration No.(URN) : AAETR4547B22BL01 effective from AY 2022-23 to AY 2026-27. The assessee trust has also been granted approval under clause (i) of 1st Proviso to sub-section (5) of section 80G of the Act on 16.2.2022 vide Unique Registration No. (URN): AAETR4547BF020219 effective from AY 2022-23 to AY 2026-27. The assessee trust thereafter applied for final approval u/s 80G of the Act on 2.12.2024. On receipt of the application in Form No.10AB dated 2.12.2024, the ld. CIT (Exemptions) verified the application and found that the trust was supposed to file the application for approval in Form No.10AB under clause (ii) of 1st proviso to sub- section (5) of section 80G of the Act since the assessee Trust has already obtained the provisional registration u/s 80G of the Act in Form No.10AC effective from 7.4.2022 to AY 2024-25. However, the assessee filed the application in Form No.10AB under clause (iii) of 1st proviso to sub-section (5) of section 80G of the Act. Since the

Aggrieved by the order of ld. CIT (Exemptions) dated 26.6.2025, the assessee has filed the present appeal before this Tribunal. The assessee has also filed a paper book containing therein copy of form 12A final registration certificate, application for 80G provisional registration and application for 80G final registration.

Before us, the ld. A.R. of the assessee vehemently submitted that the assessee trust during the filing of the application for approval u/s 80G of the Act while selecting the drop-down box had inadvertently selected clause (iii) instead of clause (ii) of the 1st proviso to sub-section (5) of section 80G of the Act. Further, the ld. A.R submitted that the ld. CIT (Exemptions) erred in rejecting the application without even providing an opportunity of being heard by way of issuing final show cause notice to the assessee, which is a gross violation of principles of natural justice and accordingly prayed that the ld. CIT (Exemptions) may be directed to treat the application filed in correct section code and consider the application accordingly as this was a bonafide mistake on the part of the assessee trust.

Ld. D.R. on the other hand supported the order of ld. CIT (Exemptions).

We have heard the rival submissions and perused the materials available on record. On going through the order of ld. CIT (Exemptions), we observed that the ld. CIT (Exemptions) rejected the Form No.10AB dated 2.12.2024 solely on the ground that assessee had selected the wrong section code while filing Form 10AB for approval u/s 80G of the Act. Undisputedly, the assessee had been

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