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Facts
The assessee, Indira Mahila Bahuuddeshiya Seva Sanstha, applied for approval under Section 80G(5) of the Income Tax Act in Form No. 10AB on 15.10.2024. The CIT (Exemption), Pune, rejected this application on 09.04.2025, primarily on the ground that it was filed belatedly, beyond the prescribed 6-month period from provisional approval and the extended CBDT circular deadline.
Held
The Income Tax Appellate Tribunal (ITAT) condoned the initial delay in filing the appeal. It noted that an amendment to Section 80G(5)(iv) of the Act, effective from 01.10.2024, permits applications for approval even after the commencement of activities. Consequently, the ITAT set aside the CIT's order, concluding there was no delay in light of the amendment, and remanded the matter back to the CIT (Exemption) for fresh adjudication on merits, providing the assessee a reasonable opportunity of hearing and compliance.
Key Issues
Whether the application for 80G approval was belated; and whether a subsequent statutory amendment allowing applications after commencement of activities should be considered, warranting a reconsideration of the rejection.
Sections Cited
80G, 80G(5), 80G(5)(iii), 80G(5)(iv)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
Shri Indira Mahila Vs. CIT, Exemption, Pune. Bahuuddeshiya Seva Bhavi Sanstha, Taroda Bk, Nanded- 431605. PAN : AAPTS4740N Appellant Respondent Assessee by : Shri Pramod S. Shingte Revenue by : Shri Amol Khairnar Date of hearing : 13.11.2025 Date of pronouncement : 19.11.2025 आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 09.04.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for approval u/s 80G of the IT Act.
There is delay in filing of the present appeal. We are satisfied with the reasons mentioned in the affidavit for condonation that the applicant was prevented by sufficient cause for not filing the appeal within the prescribed time limit. After hearing Ld. DR, we condone the delay and proceed to adjudicate the appeal.
Facts of the case, in brief, are, that the assessee filed its application for approval in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the Act on 15.10.2024. With a view to verify the genuineness of activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G(5) of the Act, notices were issued through ITBA portal requesting the assessee to upload certain information/clarification. The assessee in response to above notices furnished desired information as mentioned in the notices. After verifying these details, Ld. CIT, Exemption, Pune dismissed the application for approval u/s 80G(5) of the Act by observing as under :- “6. The assessee responded to the said notice and furnished the compliance on 17/03/2025. Upon verification of the documents it is seen that the assessee has not offered any written submission on the issues raised in the notice. It has also not furnished any explanation to point no 2(vi) of the show-cause notice dated 19/02/2025. Further, it seen from the submissions that the copy of order of provisional approval under section 80G(5) read with clause (iv) of first proviso to section 80G(5) of the Income Tax Act, 1961, the date of provisional approval is 31/05/2023. As per the provisions of clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961, where a trust or institution has been provisionally approved under section 80G(5)(iv) of the Act, the application for regular approval under section 80G(5)(iv) is required to be filed within 6 months from the date of commencement of activities. Since, the activities were already commenced as on the 6 months from the date of provisional approval i.e. on or before 30/11/2023. The extended time limit as per CBDT Circular No. 7 of 2024 was 30/06/2024. However, the present application filed by the trust is on 15/10/2024 i.e. after the expiry of period under clause (iii) of first proviso to section 80G(5) of the Act. Thus, it is seen that the assessee has failed to file the present application within the time limit allowed under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961.
7. In view of the above, the application dated 15/10/2024 filed in Form 10AB by the assessee is hereby rejected.”
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 us that the application for approval u/s 80G(5) of the Act was rejected by Ld. CIT, Exemption, Pune by treating the application as filed late by 5 months. Ld. AR further submitted before us that from 01.10.2024 there is an amendment in clause (iv) of third proviso to sub-section (5) of section 80G of the Act which permits the assessee to file application for approval at any time after the commencement of activities & therefore the allegation by Ld. CIT, Exemption, Pune that the application for approval is belated is not correct. Accordingly, Ld. AR requested before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to allow the application for approval u/s 80G(5) of the Act.
Ld. DR appearing from side of the Revenue relied on the order passed by 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. In this regard, we find that the application for approval u/s 80G(5) of the Act was rejected merely on the ground of delay. However, we find that w.e.f. 01-10-2024 there is an amendment in proviso to section 80G(5)(iv) of the Act which permits the assessee to file application for approval u/s 80G(5) of the Act even after commencement of their activities. In this regard, the relevant amended section is produced as under :- “Provided that the institution or fund referred to in clause (vi) shall make an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for grant of approval,— (i) where the institution or fund is approved under clause (vi) [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020], within three months from the 1st day of April, 2021; (ii) where the institution or fund is approved and the period of such approval is due to expire, at least six months prior to expiry of the said period; (iii) where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier; [or] [***] where activities of the institution or fund have— [(iv) (A) not commenced, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said approval is sought; (B) commenced [***] at any time after the commencement of such activities:]”
From the perusal of above amended proviso to section 80G(5)(iv) of the Act, we find that the assessee can file the application for approval even after commencement of its activities, therefore we are of the considered opinion that there is no delay in filing of the impugned application for approval u/s 80G(5) & accordingly we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune & remand the matter back to his file with a direction to decide the application for approval u/s 80G(5) of the Act afresh as per fact and law after providing reasonable 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 in support of the application for approval u/s 80G(5) of the Act without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption,