ROONGTA WELFARE FOUNDATION,SURAT vs. CIT(EXEMPTION),AHEMDABAD, AHEMDABAD

On the facts and in circumstances of the case as well as law on the subject, the learned CIT(Exemption) has erred in rejecting assessee's application in Form No. 10AB for registration u/s. 80G(5)(ii) on the ground that assesse does not have valid registration u/s. 12A/12AB. Assessee submits that the assessee had valid provisional registration u/s.12A at the time of filling application.

It is therefore prayed that order of CIT(Exemption) passed u/s. 80G(5) of the I.T. Act, 1961 may please be set aside and he may be directed to pass fresh order granting approval u/s. 80G(5). Asst. Year –NA - 2–

Appellant craves leave to add, alter or delete any ground(s) either before or in the course hearing of the appeal.”

The brief facts of the case are that the assessee, Roongta Welfare Foundation, is a charitable trust which filed an application in Form No. 10AB seeking approval under section 80G(5) of the Income-tax Act, 1961 ("the Act"). The Ld. CIT(Exemptions) examined the application and the details available on record while processing the request for grant of approval under section 80G of the Act.

During the course of examination of the application, the Ld. CIT(Exemptions) observed that the assessee trust did not possess a valid registration under section 12A/12AB of the Act at the time of filing the application seeking approval under section 80G. The Ld. CIT(Exemptions) held that registration under section 12A/12AB of the Act is a mandatory pre- condition for grant of approval under section 80G of the Act. In support of this proposition, reliance was placed on the decision of the Hon’ble Gujarat 10AC under section 12A/12AB or under section 10(23C) at the time of filing the present application in Form No. 10AB. On the basis of the above observations, the Ld. CIT(Exemptions) held that the application filed by the assessee seeking approval under section 80G(5)(iii) / 80G(5)(iv)(B) of the Roongta Welfare Foundation vs. CIT(E) Asst. Year –NA - 3–

The assessee is in appeal before us against the order passed by the Ld. CIT(Exemptions) dismissing the application of the assessee.

We have heard the submissions of the learned counsel for the assessee and perused the material available on record. The learned counsel for the assessee submitted that the Ld. CIT(Exemptions) rejected the application for approval under section 80G on the ground that the assessee trust did not possess valid registration under section 12A/12AB of the Act. The counsel for the assessee contended that this finding recorded by the Ld. Asst. Year –NA - 4–

In these circumstances, we are of the view that the matter requires fresh examination at the level of the Ld. CIT(Exemptions) after verifying the provisional registration certificate and other relevant records. In the interest of justice and fair play, it would therefore be appropriate to restore the issue to the file of the Ld. CIT(Exemptions) for de-novo consideration after providing adequate opportunity of being heard to the assessee.

Accordingly, the matter is restored to the file of CIT(Exemptions) with a direction to examine the application of the assessee afresh in accordance with law.

Accordingly, the appeal of the assessee is allowed for statistical purposes. This Order is pronounced in the Open Court on 12/03/2026 (NARENDRA P. SINHA) JUDICIAL MEMBER Ahmedabad; Dated 12/03/2026