LOKSAKHA WELFARE SOCIETY,KOLKATA vs. CIT(EXEMPTION),, KOLKATA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Ld.
Commissioner of Income Tax (Exemption)-Kolkata [hereinafter referred to as the ‘Ld. CIT (Exemption)’] passed in respect of registration u/s 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 22.02.2025. 1.1. The Registry has informed that both the appeals filed by the assessee are barred by limitation by 112 days. An application seeking condonation of delay has been filed by the assessee stating as under:
“1. The Commissioner of Income Tax (Exemptions), Kolkata ('CIT(E)'), has passed the order dated 22 February 2025 under section 80G(5) of the Income-tax Act, 1961 ('the Act') rejecting the registration under the said section to the Appellant.
I.T.A. No.: 1883/KOL/2025
Assessment Year: N.A.
Loksakha Welfare Society.
2. Being aggrieved, the Appellant has preferred an appeal to ITAT, Kolkata bench, against the order rejecting registration under days beyond the statutory time limit. section 80G of the Act. The said appeal is being filed with a delay of 3. The Appellant is a society incorporated on 19 January 2004 with the objects of relief of the poor, education, medical relief, yoga, preservation of environment (including watershed, forests and wildlife) and advancement of any other object.
4. The Appellant had received registration as per the erstwhile section 12AA by the approval dated 21 November 2007 received from the Director of Income Tax (Exemption), Kolkata - copy is attached herewith as Annexure
1. Presently, as per the new provisions of registration under the Act, the Appellant has received approval for registration u/s. 12A of the Act vide order of approval received in Form 10AD dated 03 March 2025 applicable for the A.Y. 2022-23 to 2026-27-copy of the Form 10AD dated 03 March
2025 is attached herewith as Annexure 2. 5. The Appellant had requested for renewal of registration u/s. 80G(S)(vi) of the Act and the same was accepted by the Income Tax Department and approval in this regard was granted by the Director of Income Tax
(Exemption) vide letter dated 08 August 2013 issued by the I.T.O. (Exem.),
Hqrs, Kolkata. The said approval extended the applicability of registration as per section 80G to the period beyond the A.Y. 2013-14 and till perpetuity, unless specifically withdrawn by the Department-copy of approval of renewal application is attached herewith as Annexure 3. 6. In view of amendments to the provisions of registration and renewal of registration introduced by the Finance Act 2021 applicable to the section 80G of the Act, the Appellant filed Form 10A on 02 September 2021 seeking to renew the registration - copy of the Form 10A is attached herewith as Annexure 4. However, while filling in the said Form, the Appellant inadvertently sought registration under sub-clause (A) of clause (iv) of the first proviso to section 80G(5) instead of applying under correct clause (i) of the first proviso to section 80G(5). In other words, although the Appellant was already registered u/s. 80G of the Act and, post the amendment, was required to apply for registration under Clause (i) of first proviso to sub-section (5) of section 80G (under 'code 11' as per the Form 10A Form), by sheer inadvertence and unintended error on its part, the application was made under sub-clause (A) of clause (iv) of the first proviso to section 80G(5) (under 'code 12' of the Form 10A), which was applicable to societies/trusts who were awarded fresh registration on a provisional basis.
I.T.A. No.: 1883/KOL/2025
Assessment Year: N.A.
Loksakha Welfare Society.
The main implication of applying under the wrong head or code in the Form
10A was that, trusts/societies who were already registered u/s. 80G were to be granted registration for a period of 5 years (refer to the Clause (i) of the second proviso to section 80G(5) of the Act) and for renewal of registration, they were required to seek re-registration 6 months prior to the date of expiry, whereas, in case of trusts/societies applying for a fresh registration, only provisional registration was given by the Department for a period of 3
years and such trusts/societies were also required to intimate the Department within 6 months from the commencement of activities (refer to the first proviso and Clause (ii) & (iii) of the second proviso to section 80G(5) of the Act). The application of the Appellant for renewal was rejected on this ground alone.
7. Moreover, it is also pointed out that after receipt of the rejection order dated 22 February 2025, the Appellant had contacted its consultant to suggest a way forward. However, from March 2025 till July 2025, no solution to the issue could be found and when the present case was referred to other consultant, the facts of case in terms of wrong filing and solution by way of appeal came to light and, thereafter, appeal is preferred. In view of this background, since the Appellant got advice from the other consultant only in the month of July 2025, the present appeal is being filed belatedly and the same deserves to be allowed by the Hon'ble Income Tax Appellate
Tribunal and it is prayed accordingly.
8. Hence, it is submitted that the delay was neither deliberate nor due to negligence on the part of the Appellant. The Appellant had acted promptly on receipt of the rejection order and has again acted expeditiously once the alternate course/route was identified by the other consultant in the month of July 2025. 9. Therefore, we humbly request you to kindly condone the delay in filing the present appeal, which was purely due to lack of understanding of the correct procedure in response to such technical rejection, and adjudicate the same on the merits of the case.”
1.2. We have considered the application for condonation of delay and the reasons stated therein and are satisfied that the assessee had a reasonable and sufficient cause and was prevented from filing the instant appeal within statutory time limit. We, therefore, condone the delay and admit the appeal for adjudication.
I.T.A. No.: 1883/KOL/2025
Assessment Year: N.A.
Loksakha Welfare Society.
2. The assessee is in appeal before the Tribunal raising the following grounds of appeal:
“1. The learned Commissioner of Income Tax (Exemptions), Kolkata ['CIT (E)']
erred in rejecting the application filed by the Appellant Company, in Form
10AB on 23 August 2024 for grant of approval under section 80G(5) of the Act, vide order passed on 22 February 2025. 2 The CIT(E) failed to appreciate that the Appellant had been granted approval u/s 80G since the year 2004 and it was only a clerical mistake in mentioning the wrong clause of the section at the time of the earlier approval.
3. The CIT(E) erred in rejecting approval u/s. 80G merely on the ground of ostensible delay in filing application for renewal.
4. The CIT (E) erred in not affording the Appellant a reasonable opportunity of being heard as mandated by the provisions of section 80G(5) of the Act thereby violating the basic principles of natural justice.
5. The CIT (E) erred in rejecting the application without going into the merits of the case.
The above grounds are independent of and without prejudice to one another.
The Appellant Company craves leave to add, alter, amend or withdraw all or any of the Grounds of Appeal, if and when necessary, till conclusion of appeal proceedings.”
3. Brief facts of the case are that the assessee Society was granted provisional approval u/s 80G(5)(iv) of the Act in Form No. 10AC by CPC,
Bengaluru for a period from AY 2022-23 to AY 2024-25. Subsequently, the assessee filed an application for approval of the Society u/s 80G(5)(iii) of the Act in Form No. 10AB on 23.08.2024. Accordingly, vide notice dated 15.01.2025, the applicant Trust/Institution was required to furnish detailed note on the activities carried out as well as certain details/documents as mentioned therein. In response thereof, the assessee submitted its reply. On perusal of the submissions made by the assessee, the Ld. CIT (Exemption) found that the assessee had already commenced its activities from the year 2004. The extended due
I.T.A. No.: 1883/KOL/2025
Assessment Year: N.A.
Loksakha Welfare Society.
date for filing application in Form No. 10AB was 30.06.2024 as per
CBDT Circular no. 07/2024 dated 25.04.2024; however, it was found that the assessee did not file the same within the stipulated time limit.
Hence, in view of the same, the application filed in Form No. 10AB u/s 80G(5)(iii) of the Act was rejected as non-maintainable and the provisional certificate issued to the assessee was also cancelled.
4. Aggrieved with the order of the Ld. CIT (Exemption), the assessee has filed the appeal before the Tribunal.
5. It was submitted by the Ld. AR that the assessee was granted registration under section 12A with the approval under section 80G of the Act was not granted. The assessee was existing since 2004 and had also been granted approval under section 80G of the Act from A.Y. 2007-
08 onwards. The application for approval under section 80G was made under the wrong code, while it should have been filed as an old assessee. He requested that another opportunity may be granted to file the required documents before the Ld. CIT(E). The Ld. DR relied upon the order of the Ld. CIT(E) and requested that the same may be upheld.
6. We have heard the rival contentions and have also gone through the facts of the case. During the course of the appeal, the Bench was of the view that the Ld. CIT (Exemption) had denied the claim of exemption u/s 12AB of the Act merely on account of delay in filing the application in Form No. 10AB while the requirements of the Trust existing for charitable and carrying out charitable activities were primarily to be examined. Therefore, in the interest of justice, it was considered imperative that the assessee may be granted another opportunity to file its submission in response to the notice issued by the Ld. CIT
(Exemption) for justifying the genuineness of the activities and claim of I.T.A. No.: 1883/KOL/2025
Assessment Year: N.A.
Loksakha Welfare Society.
approval. Hence, the order of the Ld. CIT (Exemption) is set aside and the matter is remanded to him for deciding the application afresh after granting an opportunity of being heard to the assessee, allowing an opportunity to the assessee to furnish the details in respect of the queries raised and thereafter consider the application in accordance with law as it was an existing society. For statistical purposes, the grounds of appeal are partly allowed.
7. In the result, this appeal filed by the assessee is partly allowed for statistical purposes.
Order pronounced in the open Court on 30th December, 2025. [George Mathan]

[Rakesh Mishra]
Judicial Member

Accountant Member
Dated: 30.12.2025
Bidhan (Sr. P.S.)
I.T.A. No.: 1883/KOL/2025
Assessment Year: N.A.
Loksakha Welfare Society.
Copy of the order forwarded to: