GODAVARI AND LAXMI VAID FOUNDATION ,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

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ITA 7566/MUM/2025Status: DisposedITAT Mumbai27 May 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the rejection of the application solely on the ground of delay was unsustainable, especially considering the amended provisions of Section 80G(5) which permit filing of the application at any time. The matter was restored to the CIT(Exemption) for fresh adjudication on merits.

What were the facts?

The assessee trust applied for regular registration under Section 80G(5) of the Income Tax Act. The application was rejected by the CIT(Exemption) due to a delay of 22 months in filing the application for regular approval after obtaining provisional approval.

What were the issues?

Whether an application for registration under Section 80G(5) can be rejected solely on the ground of delay in filing, given the amended provisions of the Act.

Which sections of the Income-tax Act were involved?

Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SMT BEENA PILLAI & SHRI JAGADISH

For Appellant: Shri Dharan Gandhi & Vinita Nara
For Respondent: Shri Arun Kanti Datta- CIT DR
Hearing: 13.04.2026Pronounced: 27.05.2026

Per: SHRI JAGADISH, A.M.:

1.

This appeal filed by the assessee is directed against the order of the Ld. CIT(Exemption), Mumbai dated 18.09.2025 rejecting the application filed by the assessee trust for approval u/s 80G(5) of the Income Tax Act, 1961.

ITA No.7566/M/2025 Godavari and Laxmi Vaid Foundation 2. The assessee has raised following grounds of appeal:-

“1.0 On the facts and in the circumstances of the case, the Ld. CIT(Exemption) erred in rejecting the application for regular registration u/s 80G(5) of the Act.

2.0 On the facts and in the circumstances of the case, the Ld. CIT(E) erred in rejecting the application filed by the appellant trust for grant of exemption u/s 80G of the Act due to wrong section which was a curable defect.

3.0 On the facts and in the circumstances of the case, the Ld. CIT(E) erred in rejecting, and not condoning the delay for filing of application for renewal of the provisional certificate of registration u/s 80G(5) of the Act without considering the reasons and condonation application submitted during the course of hearing.

4.0 On the facts and in the circumstances of the case, the Ld. CIT(E) erred in rejecting the application for registration u/s 80G(5) of the Act on the ground that there was no reasonable cause and genuine hardship in filing the application within the due date faced while filing the application.

5.0 The impugned order rejecting registration is in gross violation of principles of natural justice and therefore, bad in law.”

3.

Brief facts of the case are that the assessee trust filed application in Form No.10AB seeking approval u/s 80G of the Act. The Ld. CIT(E) observed that the assessee had obtained provisional approval in Form 10AC dated 03.08.2022 valid upto A.Y. 2025-26. The Ld. CIT(E) further observed that as per clause (iii) of first proviso to section 80G(5), the assessee was required to file application for regular approval within the prescribed period, however the application was filed on 28.03.2025 and

ITA No.7566/M/2025 Godavari and Laxmi Vaid Foundation therefore according to him there was delay of 22 months beyond the permissible period. The application was accordingly rejected as non- maintainable on the ground of late filing.

4.

Before us, the Ld. Authorised Representative submitted that the assessee had also filed condonation application before the Ld. CIT(E) explaining the reasons for delay. The Ld. AR further submitted that the issue is covered by the order of the coordinate bench in the case of Khetaji Dhanaji Charitable Trust in ITA No.4676/Mum/2025 dated 30.09.2025 wherein under similar facts the issue was restored back to the file of the Ld. CIT(E).

5.

On the other hand, the Ld. Departmental Representative relied upon the order of the Ld. CIT(E).

6.

We have heard the rival submissions and perused the material available on record. We find that the sole reason for rejection of the application by the Ld. CIT(E) is delay in filing Form No.10AB. We further note that proviso (iv)(B) to section 80G(5), inserted w.e.f. 01.10.2023, permits filing of application at any time. Therefore, in our considered view, rejection of the assessee’s application merely on the ground of delay cannot be sustained. Once the statute itself permits filing of application at any time, the application filed by the assessee was required to be examined on merits instead of being rejected as non- maintainable on account of delay.

7.

We further find that the coordinate bench in the case of Khetaji Dhanaji Charitable Trust (supra), under similar facts, restored the issue back to the file of the Ld. CIT(E) for fresh adjudication. Respectfully following the same and considering the amended provisions of section 80G(5), we restore the issue back to the file of the Ld. CIT(E) with

ITA No.7566/M/2025 Godavari and Laxmi Vaid Foundation direction to consider the application filed by the assessee afresh in accordance with law after providing adequate opportunity of being heard to the assessee.

8.

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

1.

Order pronounced in the open court on 27/05/2026.

Sd/- Sd/- (BEENA PILLAI) (JAGADISH) Judicial Member Accountant Member

Mumbai, Dated: 27/05/2026 Ashwani Rao Sr. Private Secretary

Copy of the order forwarded to: 1. Appellant 2. Respondent 3. The CIT 4. The CIT (Appeals) 5. The DR, I.T.A.T. By order

(Assistant Registrar) ITAT, Mumbai

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