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Facts
The assessee, Raj Path Sports Foundation, a Section 8 company, applied for regular registration u/s 12A(1)(ac) and approval u/s 80G(5). These applications were filed after the prescribed due date, leading to their rejection by the CIT(E) for being barred by limitation and for non-compliance.
Held
The Tribunal condoned the delay in filing the applications, referencing a proviso to Section 12A(1)(ac) introduced by the Finance (No.2) Act, 2024. The matters were restored to the file of the CIT(E) for fresh adjudication, ensuring the assessee is given a reasonable opportunity to present details.
Key Issues
Whether the delay in filing applications for regular registration and 80G approval can be condoned under the newly introduced proviso to Section 12A(1)(ac), and if so, whether the matter should be restored to the CIT(E) for adjudication.
Sections Cited
12AB, 12A(1)(ac), 80G(5), 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE “B” BENCH : PUNE
Before: DR. MANISH BORAD & SHRI VINAY BHAMORE
ORDER PER : MANISH BORAD, AM
This appeal at the instance of the assessee is directed against the order of Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”], dated 16/07/2025 framed under section 12AB of the Income Tax Act, 1961 (“Act”), whereby application for regular registration u/s. 12A(1)(ac) of the Act and for grant of approval u/s. 80G(5) of the Act have been rejected.
2 ITA.No.2201 & 2202/PUN./2025 (Raj Path Sports Foundation) 2. At the outset, learned counsel for the assessee fairly admitted that assessee’s applications for regular registration u/s. 12A(1)(ac) of the Act and regular approval u/s. 80G(5) of the Act evenly filed on 24/01/2025 are barred by limitation and the Ld.CIT(E) has dismissed these applications majorly for the reason that they have not been submitted within the prescribed time limit. He also submitted that assessee could not furnish any details before the Ld.CIT(E). Learned counsel for the assessee further referred to proviso to section 12A(1)(ac) of the Act introduced by the Finance (No.2) Act, 2024, came into effect from 01/10/2024 through which the Principal Commissioner or Commissioner has been given powers to condone the delay in filing the applications, if there is a reasonable cause. He submitted that the said proviso is clarificatory and may be applied even for pending applications also. He prayed for setting aside the issues of regular registration u/s. 12A(1)(ac)(iii) and approval u/s. 80G(5) of the Act to the file of Ld.CIT(E) for necessary adjudication.
On the other hand, Ld. Ld. Departmental Representative (DR) supported the order of Ld.CIT(E).
We have heard rival contentions and perused the records placed before us. We observe that assessee is a section 8 company registered under Companies Act, 2013 incorporated on 10/01/2022. The main object of the assessee trust is to 3 ITA.No.2201 & 2202/PUN./2025 (Raj Path Sports Foundation) promote and develop all forms of indoor and outdoor sports from the grassroots level by providing world-class infrastructure, and also other activities incidental to sports development in alignment with the Government of India’s Sports Policy. The assessee has been granted provisional registration u/s. 12AB on 04/04/2023 and was required to file application for regular registration u/s. 12A(1)(ac)(iii) as well as for getting approval u/s. 80G(5) of the Act. Admittedly, both these applications are delayed and Ld.CIT(E) has rejected both the applications, firstly on account of delay in filing the applications and secondly for non-compliance on the part of the assessee.
We observe that assessee has been incorporated with the object of charitable activities and on account of delay in filing the applications, assessee should not be debarred for claiming the benefits of section 12A as well as 80G(5) of the Act. Even in the Finance (No.2) Act, 2024, effective from 01/10/2024, provides that where application is filed beyond the time allowed in sub-clause (i) to (vi) of section 12A(1)(ac) of the Act, Principal Commissioner or Commissioner if he considers that there is a reasonable cause for delay in filing the application, condone such delay and such application shall be deemed to have been filed within time.
4 ITA.No.2201 & 2202/PUN./2025 (Raj Path Sports Foundation) 6. Considering the said amendment and also considering the prayer made by learned counsel for the assessee, we condone the delay in filing the application for regular registration u/s. 12A(1)(ac) of the Act and for regular approval u/s. 80G(5) of the Act and restore the issues back to the file of Ld.CIT(E) for necessary adjudication to be carried out after duly considering the details to be filed by the assessee in support of its both the applications. Needless to mention that Ld.CIT(E) shall afford reasonable opportunity of hearing to the assessee to furnish relevant information and other details. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned orders are set aside and effective grounds of appeals raised by the assessee are allowed for statistical purposes.
In the result, both the appeals filed by the Assessee are allowed for statistical purposes.
Order pronounced in the open Court on 28.11.2025.