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Facts
The assessee, Global Environment Research Foundation, received provisional approval u/s 80G(5)(iv) for its charitable activities. Subsequently, it applied for final approval u/s 80G(5)(iii), but the CIT (Exemption) rejected the application, citing late filing as the assessee had already commenced activities in FY 2020-21, and therefore, the application was not filed within the prescribed time limit.
Held
The Tribunal, citing *Nitdaa Foundation*, held that the assessee, being an old entity, should have applied under Section 80G(5)(i), and that mentioning the wrong clause (iii) was a curable defect. The order of the CIT (Exemption) was set aside, and the matter was remanded to him for reconsideration of the application as one filed under clause (i) of the first proviso to Section 80G(5).
Key Issues
Whether the CIT (Exemption) erred in rejecting the application for 80G(5)(iii) approval due to late filing for an existing entity, and whether the incorrect mention of a sub-clause by the assessee is a curable defect.
Sections Cited
80G(5)(iii), 80G(5)(iv), 80G(5), 12AA
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Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
order
: 09-July-2025 ORDER
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 27.01.2025.
Brief facts of the case are that the assessee claims to carry on charitable activities and was granted provisional approval u/s 80G(5)(iv) of the Act in Form No. 10AC by CPC, Bengaluru vide order dated 23.09.2021 for a period from 23.09.2021 to A.Y. 2024-25. Subsequently, an application for approval of the trust u/s 80G(5)(iii) of the I.T. Act, 1961 was filed electronically. A notice was issued to the applicant/assessee on 27.12.2024 to furnish detailed note on the activities carried out by the assessee, as well as certain details/documents as mentioned therein, which was considered necessary in view of the mandatory provisions of the procedure for approval u/s 80G(5)(iii) of the Act, 1961. The submissions filed by the assessee were examined and it was found that the assessee had already commenced its activities in the financial year 2020-21 and the extended due date for filing the application in Form No. 10AB was 30/06/2024 as per the CBDT’s Circular No. 07/2024 dated 25/04/2024. It was also noted by the Ld. CIT(Exemption) that the assessee had incurred