LIONS CLUB OF NORTH BOMBAY CHARITY FUND,MUMBAI vs. ITO EXEMPTION 1(4), MUMBAI

PDF · subscribers
ITA 6746/MUM/2026Status: DisposedITAT Mumbai30 September 20265 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal condoned the delay of 28 days in filing the appeal, being satisfied that the assessee was prevented by sufficient cause due to the medical circumstances explained in the affidavit and supported by relevant medical documents. Regarding the rejection of the section 80G application, the Tribunal found that it was primarily rejected due to non-compliance with the notice. Considering the circumstances explained by the assessee and in the interest of substantial justice, the Tribunal deemed it appropriate to examine the application on its merits. Therefore, the impugned order of the CIT(E) was set aside, and the matter was restored to the CIT(E)'s file for fresh consideration of the assessee’s application for renewal of approval under section 80G. The assessee was to be afforded a reasonable opportunity to furnish the requisite documents and explanations. The ratio is that where substantial justice requires it, and sufficient cause for non-compliance is shown, a matter should be decided on merits after affording a proper opportunity, rather than being dismissed on procedural grounds.

What were the facts?

The assessee, Lions Club of North Bombay Charity Fund, had its application for renewal of approval under section 80G of the Income-tax Act, 1961, rejected by the Commissioner of Income Tax (Exemption), Mumbai (CIT(E)). The rejection was based on the assessee's alleged non-compliance with a notice dated 12.01.2026, which sought requisite documents and information. The CIT(E) stated that due to this non-compliance, he was unable to satisfy himself regarding the fulfillment of conditions prescribed under section 80G. The assessee appealed this order, which was passed on 28.02.2026. The appeal was filed with a delay of 28 days, which the assessee sought to condone due to severe medical issues faced by their Chartered Accountant and his family.

What were the issues?

1. Whether the delay of 28 days in filing the appeal should be condoned, considering the medical circumstances presented by the assessee? (Question of fact) 2. Whether the application for renewal of approval under section 80G should be rejected solely on the grounds of non-compliance with the notice dated 12.01.2026, without a substantive examination of the merits? (Question of law and fact, turning on Section 80G(5) and Rule 11AA(2)) Assessee's Contentions: The assessee argued that the delay in filing the appeal was due to serious medical difficulties faced by their Chartered Accountant and his family, supported by an affidavit and medical records. They contended that this constituted a sufficient cause for the delay. Regarding the rejection of the 80G application, the assessee implied that the non-compliance was not wilful and that the matter should be examined on merits. Revenue's Contentions: The judgment does not record any specific contentions from the revenue's side regarding the delay or the merits of the 80G application. The revenue was represented by the CIT-DR.

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, MUMBAI BENCHES, MUMBAI

Before: SHRI OM PRAKASH KANT & SHRI SIDDHARTHA NAUTIYAL

PER SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER:

This appeal by the assessee is directed against the order dated 28.02.2026 passed by the learned Commissioner of Income Tax (Exemption), Mumbai [“learned CIT(E)”], whereby the application filed by the assessee seeking renewal of approval under section 80G of the Income-tax Act, 1961 (“the Act”) was rejected.

Briefly stated, the assessee, M/s. Lions Club of North 2. Bombay Charity Fund, was registered with the Charity Commissioner, Greater Bombay Region, Bombay, on 01.04.1966. The assessee was granted approval under section 80G vide order dated 23.09.2021, valid for Assessment Years 2022-23 to 2026- 27. Thereafter, the assessee filed an application for renewal of approval under section 80G in Form No. 10AB on 30.09.2025.

3.

The learned CIT(E), on examination of the application, noticed certain deficiencies and issued a notice dated 12.01.2026, calling upon the assessee to furnish the requisite documents and information. According to the learned CIT(E), the assessee did not fully comply with the said notice. The learned CIT(E), therefore, rejected the application on the ground that, in the absence of the requisite compliance, he was unable to satisfy himself regarding the fulfilment of the conditions prescribed under section 80G of the Act. The relevant finding of ld CIT(E) is reproduced as under:

“2. On verification of the application in Form 10AB filed by the applicant, it was found that the application was not complete, and all the documents required to be accompanying the application were not furnished. Hence, a notice was issued to the applicant vide notice dated 12.01.2026 requesting the applicant to furnish the complete set of documents mentioned in Rule 11AA(2). However, the applicant has not complied with all terms of the said notice, till date. 3. Since Approval under section 80G is to be accorded to the applicant after satisfying oneself of the genuineness of activities and the compliance of all the conditions mentioned in clauses (i) to (v) of section 80G(5) and any other provisions of the Income Tax Act relevant to charitable institutions. In the absence of necessary compliance by the applicant, the undersigned is unable to arrive at a satisfactory conclusion on these parameters and is left with no other option but to reject the application seeking approval under section 80G of the Act. However, the applicant is at liberty to pursue the remedies available in Statute, without any prejudice. 4. In conclusion, this application for renewal of approval stands rejected on grounds of non-compliance to all the terms of notices issued to the applicant.” 4. Before us, the learned counsel for the assessee submitted that the assessee had furnished the relevant particulars along with the application, but could not fully comply with the notice dated 12.01.2026 on account of serious medical difficulties faced by the Chartered Accountant handling the matter and his family. An application seeking condonation of delay of 28 days in filing the present appeal was also filed, supported by an affidavit and the relevant medical records. Relevant part of the affidavit is reproduced as under:

“Condonation of Delay - The Trust was registered on 01.04.1966 vide registration no.E-3203 (Bom). Trust has obtained Approval u/s Section 80G vide no. AAATL1408PF2021301 which was valid for the period AY 22-23 to 2026-27. Reasons:There is a delay of 28 days for filling of Appeal, as under :- Our Chartered Accountant's who looks after this matter face medical problem in the month of March 2026. His wife fallen sick and admitted to ICU in Criticare hospital on 19/03/2026 and discharged on 30/03/2026. So our CA was fully occupied there and not attended office in those days. When his wife returned home he himself was fallen ill and his both hands and legs were not working completely bed ridden. He was also admitted to kokilaben Ambani hospital on 3/4/2026 and discharged on 8/4/2026 but he was not able to stand he came home on wheel chair and he have to keep 24 hour ward boy for himself as doctor told that in this type of disease recovery will take atleast 3 months. Due to the above major medical issue's in CA family there is a delay of 28 days. Request you to condone the same. Thanking You,” 5. We have considered the rival submissions and perused the material available on record. The assessee has placed on record the affidavit explaining the delay, together with the relevant medical documents. Considering the circumstances stated therein, we are satisfied that the assessee was prevented by sufficient cause from complying with the proceedings within the stipulated time. Accordingly, the delay of 28 days in filing the appeal is condoned.

6.

As regards the rejection of the application under section 80G, we find that the application came to be rejected primarily on account of non-compliance with the notice dated 12.01.2026. Considering the circumstances explained by the assessee and in the interest of substantial justice, we deem it appropriate that the application be examined on merits after affording the assessee a reasonable opportunity to furnish the requisite documents and explanations. Accordingly, the impugned order dated 28.02.2026 passed by the learned CIT(E) is set aside and the matter is restored to his file for fresh consideration of the assessee’s application for renewal of approval under section 80G, on merits and in accordance with law, after affording reasonable opportunity of being heard to the assessee. The grounds of appeal are, accordingly, allowed for statistical purposes.

7.

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

Order pronounced in the open Court on 30/09/2026.

Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (OM PRAKASH KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 30/09/2026 Saumya , Sr. P.S. 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// (Assistant Registrar) ITAT, Mumbai

More judgments on Section 80G(5)

All 2,236 judgments and leading authorities on Section 80G(5) →

Recent GST High Court judgments

Search GST case law →