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Facts
The assessee filed an application for final registration under Section 80G(5)(iii) beyond the prescribed due date. The CIT(E) rejected the application solely on the grounds of the delay, without considering the merits or the documents submitted by the assessee.
Held
The Tribunal noted that the CIT(E) had not considered the merits of the application. Given the assessee's willingness to resubmit all necessary documents and the fact that the CIT(E) had not examined the case on its merits, the Tribunal directed the CIT(E) to reconsider the matter afresh.
Key Issues
Whether the Commissioner of Income Tax (Exemption) can condone the delay in filing an application for registration under Section 80G(5)(iii) or must reject it solely based on the time limit?
Sections Cited
80G(5)(iii), 119
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Income Tax Appellate Tribunal, “DB” BENCH, NAGPUR
This appeal by assessee is directed against the order of Ld. CIT(E) dated 10.06.2025 for Assessment Year (A.Y. 2026–27). The assessee has raised the following grounds of Appeal:
1. On the basis of facts and circumstances of the case, Commissioner of Income Tax (Exemption) did not consider the facts of Assessee for delay in applying for final registration under Section 80G(5)(iii).
2. On the basis of facts and circumstances of the case, Commissioner of Income Tax (Exemption) did not consider the documents submitted by Assessee for grant of 80 G final registration and rejected the Application on the only fact that the Application was made beyond due date.
3. The assessee reserves right to amend, drop, alter and raise new grounds of appeal as per due procedure of the law.
1. ITA424/Nag/2025 (A.Y. 2026–27) Dharma JaagranNyaas 2. From the records it is noticed that as per Form 10AC dated 04.12.2023, the provisional approval was granted very A.Y 2024-2025 to 2026-27. However the assessee submitted Form -10AB on 19.1.2024, the Ld. CIT(E) has declined the approval by holding as under: 7.1 From the provisions of clause (iii) of first proviso to section 80G(5) of the Act. it is evident that the time limits prescribed therein are mandatory and the Commissioner of Income Tax has no power to condone the delay in filing application in Form No.10AB. It is evident that the time limit prescribed under clause (iii) of first proviso to section 80G(5) of the Act for filing Form No. 10A and Form No. 10AB, as the case may be, is mandatory and therefore, after considering the hardship to the assessee the CBDT extended the said time limit on multiple occasions, for filing Form No.10A and Form No. 10AB, under section 119 of the Act, vide above referred Circulars. As per above referred CBDT Circular No.7/2024, the date for filing Form No.10AB for approval / approval under section 10(23C) or 12A or 80G(5) was extended upto 30th June 2024.
In view of the above, the present application filed in Form No.10AB under clause (iii) of first proviso to section 80G(5) of the Act is liable to be rejected without going into the merits since the assessee has not filed the present application within the time limit allowed under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961.
In view of the above, the application dated 19/11/2024 filed by the assessee in Form 10AB is hereby rejected without going into the merits of the case.
Before us, the Ld. AR fairly submitted that he would like to submit all the necessary documents once again before the Ld. CIT(E). Though, the assessee filed required documents at the time of filing application for approval under section 80G(5). From the order of rejection, it is clear that Ld. CIT(E) has not gone into merits of the case. Moreover, there is no specified violation u/s 12AB which would invite the rejection of the approval.
ITA424/Nag/2025 (A.Y. 2026–27) Dharma JaagranNyaas 4. On the other hand, the Ld. DR for the revenue prayed that the appeal may be dismissed.
Considering the prayer of the ld AR of the assessee that he is ready to file all necessary documents before CIT(E), accordingly, in the peculiarity of the case we direct the Ld. CIT(E) to reconsider the matter afresh and pass order in accordance with law. The ld CIT(E) shall provide opportunity to the assessee before passing the order afresh.
In the result the appeal filed by the assessee is allowed for statistical purpose.