LALARAM GUPTA CHARITABLE TRUST,AGRA vs. ITO, EXEMPTION, AGRA, AGRA

ITA 660/AGR/2026Status: DisposedITAT Agra15 October 2026AY 2025-267 pages
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What did the Tribunal hold?

The Tribunal held that the Ld. CIT(E) rejected the assessee's applications solely on the ground of delay without adjudicating on the merits. The Tribunal took note of CBDT Circular No. 1/2026 dated 23.03.2026, which clarifies that the proviso to Section 12A(1)(ac) grants power to the PCIT to condone delays and that eligible trusts should not be denied registration solely due to delay. The Tribunal considered the assessee's explanation for the delay as reasonable. Consequently, the Tribunal deemed it just and proper to condone the delay of 65 days for the Section 12A application and 69 days for the Section 80G application. The matters were remitted back to the file of the Ld. CIT(E) to decide the applications afresh on their merits after affording the assessee sufficient opportunity of hearing. The Tribunal clarified that its order proceeded solely on the question of limitation and reasonable cause, without making any finding on the genuineness of the applicant's activities or its entitlement to registration on merits.

What were the facts?

The assessee, Lalaram Gupta Charitable Trust, filed two appeals (ITA Nos. 660 & 659/Agr/2026) against orders dated 28.06.2026 passed by the Commissioner of Income Tax (Exemption), Lucknow (CIT(E)). The appeals pertain to Assessment Year 2025-26. The CIT(E) rejected the assessee's applications for registration under Section 12A and approval under Section 80G. The rejection was based on the assessee's failure to file the applications in Form 10AB within the prescribed time, with delays of 65 days for the Section 12A application (filed 04.12.2025) and 69 days for the Section 80G application (filed 08.12.2025). The assessee had been provisionally registered under Section 12A from AY 2022-23 to AY 2026-27, requiring the application for renewal to be filed by 30.09.2025. The CIT(E) did not condone these delays, deeming the reasons provided by the assessee as insufficient.

What were the issues?

1. Whether the Ld. CIT(E) erred in rejecting the application for registration under Section 12A(1)(ac)(ii) solely on the ground of delay in filing Form 10AB, and whether the request for condonation of this delay was arbitrarily rejected, ignoring the proviso to Section 12A(1)(a) granting powers to condone delays? 2. Whether the Ld. CIT(E) erred in rejecting the application for approval under Section 80G(5)(ii) due to a delay in filing Form 10AB and whether the request for condonation of this delay should have been allowed? Assessee's Contentions: The assessee argued that it is an old charitable trust with a history of registration. Due to recent changes in law and procedures concerning registration, the application for renewal was inadvertently filed late with a delay of 65 days. The assessee requested condonation of the delay and for the matter to be set aside to the CIT(E) for a decision on merits. The assessee relied on the proviso inserted w.e.f. 01.10.2024 to Section 12A(1)(a) granting powers to PCIT and CIT to condone delays. Revenue's Contentions: The Ld. CIT DR supported the order of the Ld. CIT(E).

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 80G(5)(ii),Section 12A(1)(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AGRA (DB

Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH

For Respondent: Ms. Sangeeta Yadav, CIT/DR
Hearing: 17.09.2026Pronounced: 17.09.2026

PER : BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER:

These two appeals are directed against two separate orders both dated 28.06.2026 passed on Applications No. CIT EXEMPTION, LUCKNOW/2025-26/12AA/29915 and CIT EXEMPTION, LUCKNOW/2025- 26/12AA/30011 by the ld. Commissioner of Income Tax (Exemption), Lucknow [hereinafter referred to as the “CIT(E) under second section 12AB(1)(b) r.w. proviso to Clause 12A(1)(ac) of the Income Tax Act, 1961

ITA NO. 660 and 659/ Agr/2026

(hereinafter referred to as the “Act”), wherein ld. CIT(E) has rejected the respective applications of the assessee filed in Form No. 10AB on 04.12.2025 for registration u/s. 12A and 08.12.2

The order continues below.

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