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Facts
The assessee filed an application for registration in Form No.10AB on 30.09.2024, which was rejected by the Ld. CIT, Exemption, Pune for being filed beyond the extended time limit. The assessee also faced denial of approval under section 80G(5) of the Act.
Held
The Tribunal set aside the order of the Ld. CIT and remanded the matter back with a direction to condone the delay in light of the inserted proviso to section 12A(1)(ac) w.e.f. 01.10.2024. The issue of approval under section 80G(5) was also remitted for de novo adjudication.
Key Issues
Whether the CIT was justified in rejecting the application for registration due to delay, considering the newly inserted proviso allowing condonation of delay. Whether the denial of approval under section 80G(5) requires consequential adjudication.
Sections Cited
12A(1)(ac), 80G(5), 12AB, 12A(1)(ac)(vi), 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 10.03.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the Act filed on 30.09.2024 and denying the application for approval in & 1015/PUN/2025 Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the Act filed on 30.09.2024.
: 2. Facts of the case, in brief, are, that the assessee filed its application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of IT Act on 30.09.2024. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 07.11.2024 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. On verification of said information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies in the information furnished by the assessee and issued another notice on 13.02.2025. Not being satisfied with the reply furnished by the assessee, Ld. CIT, Exemption, Pune rejected the application for registration since it was filed beyond the extended time limit as per CBDT Circular No.7/2024 dated 25.04.2024 and also cancelled the & 1015/PUN/2025 provisional registration granted to the assessee on 28.05.2021 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the IT Act.
It is this order against which the assessee is in appeal before this Tribunal.
Ld. AR appearing from side of the assessee submitted before us that the order passed by Ld. CIT, Exemption, Pune is not justified. Ld. AR submitted before the Bench that the delay was unintentional and bonafied due to which the application could not be furnished upto 30.06.2024. Ld. AR further submitted that w.e.f. 01.10.2024 a proviso is inserted in section 12A(1)(ac) which permits the Commissioner to condone the delay if he considers that there is a reasonable cause for delay in filing the application for registration and then such application shall be deemed to have been filed within time. Accordingly, it was requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune and further requested to grant registration after condoning the delay.
1. & 1015/PUN/2025 5. Ld. DR appearing from the side of the Revenue relied on the order of Ld. CIT, Exemption, Pune and requested to confirm the same.
We have heard Ld. Counsels from both the sides and perused the material available on record. We find that admittedly the assessee requested before Ld. CIT, Exemption, Pune to condone the delay which was denied. We also find that a proviso has been inserted in section 12A(1)(ac) w.e.f. 01.10.2024 which permits the Commissioner to condone the delay if he considers that there is a reasonable cause for delay in filing the application for registration and then such application shall be deemed to have been filed within time.
Considering the totality of the facts of the case, & also in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to condone the delay in the light of proviso inserted in section 12A(1)(ac) w.e.f. 01.10.2024 and decide the application for registration afresh as per fact and law after providing reasonable & 1015/PUN/2025 opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and produce requisite documents/information/ submissions in support of the application for registration without taking any adjournment under any pretext, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal
raised by the assessee are allowed for statistical purposes.
8. In the result, the appeal filed by the assessee in is allowed for statistical purposes. :
9. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(iii) to the file of Ld. CIT, Exemption, Pune for de novo adjudication, therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s 80G(5) as well to the file of Ld. CIT, Exemption, Pune being consequential, for de novo adjudication.