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Facts
The assessee, a charitable trust, applied for approval under Section 80G(5) and Form No. 10AB. The CIT(Exemptions) rejected the application, stating the assessee lacked valid registration under Section 12A/12AB at the time of application.
Held
The Tribunal held that the CIT(Exemptions) rejected the application primarily on the ground that the assessee did not hold a valid registration under Section 12A/12AB. However, the assessee produced a provisional registration certificate under Section 12A in Form No. 10AC, which was valid at the time of application.
Key Issues
Whether rejection of application for approval under Section 80G(5) by CIT(Exemptions) was justified on the ground of lack of valid registration under Section 12A/12AB, when the assessee possessed provisional registration.
Sections Cited
80G(5), 10AB, 12A, 12A/12AB, 10AD, 10AC, 10(23C)
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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: SHRI SIDDHARTHA NAUTIYAL & SHRI NARENDRA PRASAD SINHA
O R D E R
PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 21.11.2025.
The assessee has taken the following grounds of appeal:
“1. Grounds of Appeal
On the facts and in circumstances of the case as well as law on the subject, the learned CIT(E) has erred in rejecting the application of assessee for approval u/s. 80G(5) of the Act without giving reasonable and sufficient opportunity of being heard.
2. 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.
3. 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). Roongta Welfare Foundation vs. CIT(E) Asst. Year –NA - 2–
4. Appellant craves leave to add, alter or delete any ground(s) either before or in the course hearing of the appeal.”
3. 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 High Court in the case of CIT (Exemptions) vs. Shree Tapeshwar Hanumanji Bajrang Charity Trust (122 taxmann.com 98), wherein it was held that registration under section 12A is a prerequisite for grant of approval under section 80G.
The Ld. CIT(Exemptions) further observed that the assessee did not hold any valid registration either in Form No. 10AD or Form No. 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– Act was not maintainable in absence of valid registration under section 12A/12AB. Accordingly, the application filed by the assessee was rejected by holding the same to be non-maintainable.
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. CIT(Exemptions) is factually incorrect. The learned counsel submitted that the assessee trust had been granted provisional registration under section 12A of the Act in Form No. 10AC and the same was valid at the time of filing the application in Form No. 10AB for approval under section 80G of the Act. The learned counsel further drew our attention to the provisional registration certificate (Form No. 10AC) placed on record before us and submitted that the application was rejected without properly appreciating the relevant documents and without granting adequate opportunity to explain the position. The assessee therefore requested that the matter may be restored to the file of the Ld. CIT(Exemptions) for fresh adjudication after considering the relevant registration certificate and other supporting documents.
After considering the rival submissions and examining the material available on record, we find that the Ld. CIT(Exemptions) rejected the Roongta Welfare Foundation vs. CIT(E) Asst. Year –NA - 4– application primarily on the ground that the assessee did not hold a valid registration under section 12A/12AB in either in Form No. 10AD or Form No. 10AC at the time of filing the application for approval under section 80G. However, during the course of hearing before us, the learned counsel for the assessee has placed on record the provisional registration certificate under section 12A in Form No. 10AC, which according to the assessee was valid at the time when the application for approval under section 80G of the Act was filed.
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.