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Facts
The Assessee's application for registration under Section 80G(5) was rejected by the CIT(E), citing that the provisional approval had expired and the application was filed after the extended due date. The Tribunal found factual errors in the CIT(E)'s order regarding the provisional approval expiry date, noting it was valid until A.Y. 2026-27, not 31.03.2024 as stated by the CIT(E). It was also observed that even under the CIT(E)'s incorrect expiry date, the application was filed within the statutory time limit, and a recent amendment to Section 80G(5) allows applications 'at any time after the commencement of activity'.
Held
The Tribunal set aside the CIT(E)'s order for de novo adjudication, directing the CIT(E) to provide the Assessee with an opportunity to file necessary documents. This decision was based on factual errors in the CIT(E)'s rejection and the applicability of the amended Section 80G(5).
Key Issues
Whether the CIT(E) correctly rejected the Section 80G application based on the provisional approval expiry date and filing deadline, considering factual inaccuracies and a recent statutory amendment.
Sections Cited
80G, 80G(5)
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Income Tax Appellate Tribunal, PUNE BENCHES “B” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
Assessment Year: 2025-26 Sadguru Annaseva Mandal, V Exemption Ward, Plot No.855, Sahyadri Nagar, s. Aurangabad. CIDCO, N-5, Aurangabad. Maharashtra – 431003. PAN: AAYTS4763N Appellant/ Assessee Respondent / Revenue Assessee by Mrs. Shreya Indapurkar(Virtual Hearing) Revenue by Shri Amit Bobde –CIT(DR) Date of hearing 15/10/2025 Date of pronouncement 31/10/2025 आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the Assessee against the order rejecting Assessee’s application for registration/s.80G of the Act, 1961 dated 07.03.2025.
Findings & Analysis : 2. We have heard both the parties and perused the records.
2.1 The ld.AR has filed written submission. In this case, Assessee had filed application in Form No.10AB for registration under sub- clause(iii) of first proviso to sub-section 5 of Section 80G of the Income Tax Act, 1961 on 30.09.2024. Ld.Commissioner of Income Tax(Exemption)[Ld.CIT(E)] rejected assessee’s application for registration u/s.80G of the Act. In paragraph 8 of the ld.CIT(E)’s order, ld.CIT(E) has stated that date of expiry of provisional approval in the case of Assessee was 30.03.2024. The relevant paragraph of ld.CIT(E) is reproduced here as under : “8. As it seen from the submissions that the date of expiry of provisional approval under section 80G(5)(iv) of the Act in the assessee's case is 31/03/2024. As per the provisions of clause (iii) of first proviso to section 80G(5) of the Act, 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, at least six months prior to expiry of period of the provisional approval or within six months from the date of commencement of activities. Since, the period of provisional approval was due to expire on 31/03/2024, the present application was required to be filed before 30/09/2023. However, the present application filed by the assessee is on 30/09/2024 i.e. after the expiry of period allowed under clause (iii) of first proviso to section 80G(5) of the Act. The extended due date for filing of such application was 30/06/2024 as per CBDT, Circular No 7/2024 dated 25/04/2024. The assessee filed its application in form 10AB on 30/09/2024 i.e. after the extended time limit. Further, it is also seen from the submissions that the activities were already commenced i.e. from FY 2019-20.
8.1 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 30/03/2022. 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 l.e. on or before 29/09/2022. 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 30/09/2024 l.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.”
After carefully reading the paragraphs 8 and 8.1 of the ld.CIT(E)’s order, it is noted that there are factual mistakes in the order. Ld.CIT(E) in paragraph 8 has stated that provisional approval was due to expire on 31.03.2024. This is factually incorrect. We have perused the copy of order of provisional approval which is Form No.10AD dated 23.03.2024, the provisional approval is upto 3 A.Y.2026-27. Therefore, ld.CIT(E) has erred in calculating the Date.
Ld.CIT(E) in paragraph 8 has stated that since Assessee’s provisional approval was upto 31.03.2024, as per Section 80G(5), Assessee was required to file application within six months prior to expiry of period of provisional approval. The ld.CIT(E) further stated that therefore, Assessee was required to file application before 30.09.2023. In this case, the date mentioned 30.09.2023 is incorrect as even if we calculate the period of six months from 31.03.2024, it comes to 30.09.2024. And the Assessee had filed application on 30.09.2024, thus, even considering this, Assessee filed the application within the statutory time limit.
4.1 Section 80G(5) has been amended by the Finance Act, 2024 w.e.f 01.10.2024 as under : “Deduction in respect of donations to certain funds, charitable institutions, etc.
80G. (1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section,— ……………………… 4 (5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely : …………………..
(iv) [***] where activities of the institution or fund have— (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:]”
4.2 Thus, after the Amendment which comes into effect from 01.10.2024, the Assessee is permitted to file application at any time after the commencement of activity. The said amendment is applicable in this case as Assessee’s application was filed on 30.09.2024 and ld.CIT(E) passed order on 07.03.2025.
In these facts and circumstances of the case, we set-aside the order of ld.CIT(E) for denovo adjudication to ld.CIT(E). The ld.CIT(E) shall provide opportunity to the Assessee. The Assessee shall file necessary documents before the ld.CIT(E). 5
In the result, appeal of the Assessee is allowed for statistical purpose. Order pronounced in the open Court on 31 October, 2025.