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Facts
The assessee filed applications for registration under Section 12A(1)(ac) and approval under Section 80G, both in Form No.10AB. The CIT, Exemption, Pune rejected the registration application due to non-compliance with notices and the approval application for being belated, despite amended rules and circulars extending time limits and allowing fresh applications.
Held
The Tribunal condoned the delay in filing appeals. For the registration application, the matter was remanded to the CIT to decide afresh after providing an opportunity. For the 80G approval application, the Tribunal set aside the CIT's order and remanded it to condone the delay and decide afresh, considering the amended provisions and CBDT circulars.
Key Issues
Whether the CIT correctly rejected the applications for registration and 80G approval without considering the amended provisions and CBDT circulars regarding time limits and fresh applications?
Sections Cited
12A(1)(ac), 12AB, 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & SHRI VINAY BHAMORE
ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 29.06.2023 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 27.12.2022 and denying the application for approval in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the Act filed on 27.12.2022.
& 1669/PUN/2025 2. There is delay in filing of the present appeals. We are satisfied with the reasons mentioned in the application for condonation of delay duly supported by an affidavit that the applicant was prevented by sufficient cause for not filing the appeals within the prescribed time limit. After hearing Ld. DR, we condone the delay and proceed to adjudicate the appeals.
: 3. 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 Act on 27.12.2022. 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 15.03.2023 requesting the assessee to upload certain information/clarification on or before 30.03.2023. 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 & 1669/PUN/2025 the assessee and issued another notice on 20.06.2023. The compliance was due on or before 26.06.2023. Since the assessee has not furnished any reply in response to notice dated 20.06.2023, Ld. CIT, Exemption, Pune rejected the application for registration and also cancelled the provisional registration granted to the assessee on 05.04.2022 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 Ld. CIT, Exemption, Pune has not provided proper opportunity to the assessee and, therefore, the impugned order of Ld. CIT, Exemption, Pune is not justified. It was submitted that the second and last notice was issued on 20.06.2023 asking for various information and other details and the compliance was required to be made on or before 26.06.2023. It was submitted that somehow the second and last notice could not be seen by the assessee and therefore reply could not be furnished before Ld. CIT, Exemption, Pune. Ld. AR submitted before the Bench that if one more opportunity is provided to the assessee, he is in a position to & 1669/PUN/2025 reply to the notice issued by Ld. CIT, Exemption, Pune. Accordingly, it was requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune and further requested to provide at least one more opportunity to reply to the notice issued by Ld. CIT, Exemption, Pune.
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 made compliance to the initial notice issued by the Ld. CIT, Exemption, Pune and could not file reply in response to final notice. It is the sole contention of the assessee trust that one more opportunity may kindly be provided to furnish reply before Ld. CIT, Exemption, Pune.
Considering the totality of the facts of the case, & also in the interest of justice and without going into merits of the case, we set- aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the application for registration afresh as per fact and law after providing reasonable & 1669/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.
9. In the result, the appeal filed by the assessee in is allowed for statistical purposes. :
10. 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 27.12.2022. 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 & 1669/PUN/2025 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 :- “6.9 In view of the above, the present application filed in Form No.10AB under clause (iii) of first proviso to section 80G(5) of the Act is liable to be rejected without going into the merits since the assessee has not filed 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 filed by the assessee is hereby rejected and the provisional approval granted on 06/04/2022 under clause (iv) for first proviso to section 80G(5) of the Income Tax Act, 1961 is hereby cancelled.”
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 belatedly. Ld. AR further submitted before us that the CBDT vide Circular No.7/2024 dated 25.04.2024 has provided extended time limit upto 30.06.2024 to file such an application. CBDT has also provided & 1669/PUN/2025 liberty to file fresh application before 30.06.2024 in case the application was already dismissed on the ground of delay. Ld. AR also submitted that w.e.f. 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. 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 dated 27.12.2022 for approval u/s 80G(5) of the Act was rejected merely on the ground of delay. However, we find that CBDT has provided extended time limit upto 30.06.2024 to file such an application and also gave liberty to furnish a fresh application if such as an application was already rejected on the ground of delay. Apart from this, we also find that w.e.f.
& 1669/PUN/2025 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. However, the application was furnished on 27.12.2022 and was rejected on 29.06.2023 and the CBDT Circular came in on 25.04.2024 and ultimately there is an amendment in the section itself which provides for furnishing of application even after commencement of the activities.
Considering the totality of the facts of the case and in view of our above discussion, we find some force in the arguments of the Ld. counsel of the assessee. Accordingly in the interest of justice, & without going into merits of the case, 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 condone the delay & 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