NASHIK DISTRICT TABLE TENNIS ASSOCIATION,NASHIK vs. CIT (EXEMPTION) , PUNE

This appeal filed by the assessee is directed against the order dated 07.03.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for approval u/s 80G of the IT Act.

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 29.09.2024. With a view to verify the genuineness of activities of the assessee (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 :- “6.1 The reply of the assessee is considered. However, the same is not accepted. As it is seen from the submissions that the activities were already commenced 27/01/1983. Further, as per 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 07/12/2022. 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 date of provisional approval, the trust was required to file the present application within 6 months from the date of provisional approval i.e. on or before 06/06/2023. 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 29/09/2024 i.e. after the expiry of period under clause (iii) of first proviso to section 80G(5) of the Act. Thus, trust 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.

It is this order against which the assessee is in appeal before this Tribunal.

We have heard Ld. counsels from both the sides and perused the material available on record. In this regard, we find that admittedly the provisional approval was valid upto 31.03.2025 i.e. upto assessment year 2025-26 and the assessee was required to file application for final approval u/s 80G(5) of the Act prior to six months from the expiry of the provisional approval i.e. on or before 30.09.2024. And the assessee has already filed the impugned application for approval u/s 80G(5) of the Act on 29.09.2024 which is well within the prescribed time limit.

Considering the totality of the facts of case and in the interest of justice, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and 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,