BHABNA,KOLKATA vs. CIT (EXMPTION), 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)/Ld. CIT(E)’] passed in respect of registration u/s 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 28.01.2025. 2. Though the Registry has not informed about the delay in filing of the appeal before the ITAT, the assessee has filed an application dated
12.02.2025 in which the reasons for the delay are mentioned as lack of technical expertise and awareness, health issue of the Auditor, system errors during submission attempts, completion of audit for FY 2023-24
and recurring health issues of the Auditor. It is also mentioned that the I.T.A. No.: 319/KOL/2025
Assessment Year: 2025-26
Bhabna.
Trust has got approval u/s 12AB(1)(b) of the Act recently dated
28.01.2025 and has requested that the delay may be condoned.
2.1. We have considered the submissions made for the condonation of delay and we 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
3. The assessee is in appeal before the Tribunal raising the following grounds of appeal:
“1. Appeal against
Order no:
ITBA/EXM/F/EXM45/2024-
25/1072541125(1) for re-consideration and Condonation of Delay for Submission of Renewal Application for 80G Ground
2. Respected Sir/Madam, I, Arunasis Adhikari, Secretary & Trustee of BHABNA, humbly submit this petition seeking your kind consideration and approval for condoning the delay in submitting our application for the renewal of 80G registration. Our organization is a new entity, and this is the first time we are undergoing this process. Unfortunately, due to a series of unforeseen and unavoidable circumstances, we could not submit the application within the stipulated timeline. The reasons for the delay are as follows:
1. Lack of Technical Expertise and Awareness: As a newly established organization, we lacked technical expertise and were not fully aware of the precise timelines and procedural intricacies for the renewal application. Being our first instance, we encountered challenges in understanding and navigating the process.
2. Health Issues of the Auditor from January 2024, we made earnest efforts to initiate the application process. However, our auditor, upon whom we were completely reliant, fell severely ill and was hospitalized multiple times. This unexpected situation significantly hampered our ability to proceed with the application as planned.
3. System Errors During Submission Attempts: In March 2024. when our auditor's health improved slightly, he attempted to 5 submit the application. However, due to repeated system errors, the submission could not be successfully completed by the due date of 31st March 2024. I.T.A. No.: 319/KOL/2025
Assessment Year: 2025-26
Bhabna.
4. Completion of Audit for FY 2023-24. With the change of the financial year in April 2024, it became necessary to complete the 6 audit for the financial year 2023-24 to support the application. Unfortunately, the audit process took longer than anticipated. further delaying the submission.
5. Recurring Health Issues of the Auditor: During this period, our auditor faced further health setbacks and required hospitalization again Once he recovered and resumed work, we were finally able to submit the application on 6th July 2024 for both 80G.
8. We deeply regret missing the due date and assure you that we have taken measures to ensure such delays do not occur in the future. We are committed to adhering to all timelines and procedural requirements going forward. This is for your kind information that we have got condonation mercy from Learned CIT (EXMPTION), KOLKATA for the 12A renewal, and honourable
CIT (EXMPTION), KOLKATA kindly issued 12A approval vide order:
TBA/EXM/F/EXM44/2024-25/1072640040(1) dated: 28/01/2025 In light of the above circumstances, I kindly request you to consider our genuine challenges and approve our appeal for reconsideration of renewal of 80G registration as a matter of mercy. Your favorable consideration will enable us to continue our charitable activities and contribute to society.”
3. In the grounds of appeal, the assessee has mentioned the reasons for delay which are also mentioned in the application for condonation of delay. Brief facts of the case are that the assessee was granted registration u/s 80G(iv) of the Act in Form-10AC by CPC, Bangalore vide order dated 23.09.2021 for the period from AY 2022-23 to AY 2024-25. Subsequently, an application for approval of Trust u/s 80G(5)(iii) of the Act was filed and as per the data available in the ITBA Portal, the same was filed on 06.07.2024 in Form No. 10AB under Rule 17A of the Income Tax Rules, 1962. The Ld. CIT (Exemption) issued a notice to the assessee on 27.12.2024 and requested to furnish details of the activities as well as certain details/documents and the same were required for ascertaining the actual activities of the Trust in view of the mandatory provisions u/s 80G(5)(iii) of the Act. In response to the said notice, the assessee furnished certain details/documents which were examined.
I.T.A. No.: 319/KOL/2025
Assessment Year: 2025-26
Bhabna.
The assessee was found to have commenced activities in the FY 2021-
22. As per the CBDT Circular No.7/2024, the CBDT had extended the time limit for filing such application up to 30.06.2024 and the assessee still failed to file its application within the said extended due date. Since the assessee did not file the Form No. 10AB within the stipulated time limit and the same was not filed at least 6 months prior to the expiry of the period of provisional approval or 6 months of commencing activities, whichever is earlier and since the assessee had incurred expenses on account of health awareness programme of ₹7,450/- which established the fact that the activities of the Trust had commenced in FY 2021-22, the application on Form No. 10AB u/s 80G(5)(iii) of the Act not being filed within the time limit prescribed was treated as not maintainable without going into the merits.
4. Aggrieved with the order of the Ld. CIT (Exemption), the assessee has filed the appeal before this Tribunal.
5. Rival contentions were heard and the submissions made have been examined. It was submitted during the course of the hearing by the Ld. AR that the approval u/s 12A of the Act was also denied vide order dated 25.01.2024 and the ITAT vide order dated 23.06.2025 in ITA No. 319/KOL/2025 for AY 2025-26 had treated the appeal as infructuous as the registration u/s 12A of the Act had already been granted to the assessee. A copy of the order dated 28.01.2025 passed by the Ld. CIT (Exemption) has also been filed. It was submitted that the Ld. CIT (Exemption) may be directed to allow the exemption u/s 80G(5)(iii) of the Act.
6. We have considered the submissions made. Since the condition for grant of approval u/s 12AB of the Act are similar to the condition for I.T.A. No.: 319/KOL/2025
Assessment Year: 2025-26
Bhabna.
granting approval u/s 12AB of the Act and since the assessee has been granted approval u/s 12AB of the Act after it was rejected vide order dated 25.01.2025 and the assessee is an old Trust which was formed on 03.11.2017, therefore it ought to have applied for registration under clause (i) instead of clause (iii) of the proviso to section 80G(5) of the Act. Similar issue arose in the case of Nitdaa Foundation vs.
Commissioner of Income tax (Exemption) [2024] 167 taxmann.com
111 (Kolkata - Trib.) wherein it has been held as under:
“The assessee was an existing trust and had been granted approval under section 12AA as well as under section 80G earlier, but instead of applying under clause (i) of the first proviso to section 80G(5), it applied under clause
(iii) as a new trust. If it had applied under clause (i), there was no need of issuing any provisional certificate and as per the second proviso to section 80G(5) the Principal Commissioner or Commissioner would have passed an order in writing granting it approval for a period of five years and there was no requirement for seeking any provisional approval which is required only for a new trust. [Para 11]
Thus, the whole controversy arose due to incorrect mention of the clause under which the application was required to be filed, which was mentioned as clause (iii) of the first proviso to sub-section (5) of section 80G in column
6 of Form No. 10AB, whereas the same should have been mentioned as clause (i) of the first proviso to sub-section (5) of section 80G. Since Form No.
10AB was filed in time, the error on the part of the assessee for mentioning the wrong clause is deemed to be a curable defect and the application in Form No. 10AB is deemed to be filed under clause (i) of the first proviso to sub-section (5) of section 80G. The order of the Commissioner (Exemption) is hereby set aside. He is required to consider the application as filed under clause (i) of the first proviso to section 80G(5) and consider the same for grant of approval to the trust in accordance with law. [Para 12]
5. The Bench was of the view that the Ld. CIT(E) had denied the claim of exemption u/s 80G(5)(iii) of the Act on account of delay in filing the application within the prescribed time limit by the assessee and on incorrect appreciation of the facts of the case. Hence, the order of the Ld. CIT (Exemption) is set aside and the matter is remanded to him for I.T.A. No.: 319/KOL/2025
Assessment Year: 2025-26
Bhabna.
deciding the application afresh in view of the finding in the case of Nitdaa Foundation (supra) and his own finding while granting approval u/s 12AB of the Act. He is required to consider the application as filed under clause (i) of the first proviso to section 80G(5) of the Act and consider the same for grant of approval to the Trust in accordance with law.
6. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 3rd September, 2025. [George Mathan]

[Rakesh Mishra]
Judicial Member

Accountant Member
Dated: 03.09.2025
Bidhan (Sr. P.S.)
I.T.A. No.: 319/KOL/2025
Assessment Year: 2025-26
Bhabna.
Copy of the order forwarded to: