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Facts
The assessee, Sai Disha Samjik Vikas Sanstha, applied for approval under Section 80G(5) of the Income Tax Act. The CIT(E) rejected the application, stating that the assessee lacked a valid regular registration under Section 12AB at the time of application, and also that an earlier order from the Tribunal had not been received.
Held
The Tribunal observed that the CIT(E)'s rejection was partly based on an order of the Tribunal not being received. Since the Tribunal's order was presented before them, the issue of approval under Section 80G(5) was restored to the file of the CIT(E) for fresh adjudication.
Key Issues
Whether the CIT(E) erred in rejecting the assessee's application for approval under Section 80G(5) due to a lack of valid regular registration and procedural oversight regarding a prior Tribunal order.
Sections Cited
80G(5), 12A(1)(ac)(iii), 12A(1)(ac)(i), 12AB, 10AC
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee is directed against the order dated 12.11.2024 framed by ld.CIT (Exemption), Pune denying grant of approval u/s.80G(5) of the Act.
The sole issue for our consideration is that whether ld.CIT(E) erred in rejecting the assessee’s application for approval under clause (iii) of first proviso to section 80G(5) of the Act.
At the outset, Ld. Counsel for the assessee submitted that one of the reason for rejecting the assessee’s application for approval u/s.80G(5) of the Act stated by ld.CIT(E) is that the order of this Tribunal dated 20.08.2024 remitting the issue of regular registration u/s.12A(1)ac)(iii) of the Act was not received by the office of ld.CIT(E). Therefore, prayer made to restore the issue of approval u/s.80G(5) to the file of ld.CIT(E) for necessary adjudication. Copy of the order of this Tribunal in dated 20.08.2024 is placed on record.
On the other hand, ld. DR supported the order of ld.CIT(E).
We have heard the rival contentions and perused the record placed before us. We observe that the assessee is a trust and filed the application for approval u/s.80G(5) of the Act on Form 10AB on 31.05.2024. Various details called for by ld.CIT(E) were filed. However, ld.CIT(E) rejected the assessee’s application observing as follows :
“7. The assessee’s contention is duly considered. However, the same is not found to be acceptable. The assessee's earlier application filed in form 10AB on 14/09/2023 was rejected on 13/03/2024 on account of its failure to respond to the show cause notice issued by this office and to submit the requisite information/ documents. Also, vide said order, the assessee's provisional registration in form 10AC u/s 12A(1)(ac) (vi) of the Act dt. 23/02/2022 was also cancelled. As such, the assessee had no valid regular registration u/s 12AB read with section 12A(1)(ac)(i) /12A(1)(ac)(iii) of the Act at the time of filing the present application. It has also been noticed that the assessee had filed another application on 30/03/2024 u/s 12A(1)(ac) (iii) of the Act wherein it had re-submitted provisional registration dt.23/02/2022. The applicants second application was also rejected since its provisional registration dated 23/02/2022 was already cancelled vide order dated 13/03/2024.
In addition to the above, it has also been verified that the subject order dt. 20/08/2024 of the Hon'ble ITAT has not been received by this office so as to initiate the required proceedings in the assessee's case. As such, presently the fact remains that the applicant does not have any valid regular registration u/s 12AB read with section 12A(1)(ac)(i) /12A(1)(ac)(iii) of the Act. Therefore, the assessee trust is not covered under the exclusions provided vide proviso to clause (i) of section 80G(5) of the Act.
In view of the above, the application filed by the assessee is hereby rejected and the provisional approval granted on 10/03/2022 under clause (iv) for first proviso to section 80G(5) of the Income Tax Act, 1961 is hereby cancelled.”
From the above finding of ld.CIT(E), we notice that one of the reason is that order of the Tribunal dated 20.08.2024 was not received in the office of ld.CIT(E). Before us, ld. Counsel for the assessee has placed on record the order of this Tribunal in dated 20.08.2024 remitting the issue of grant of regular registration u/s.12A(1)(ac)(iii) of the Act to the file of ld.CIT(E) for denovo adjudication. Under these given facts and circumstances, we find the issue before us for approval u/s.80G(5) of the Act also deserves to be restored to the file of ld.CIT(E) for afresh adjudication. Needless to mention that ld.CIT(E) in the set aside proceedings shall afford reasonable opportunity of hearing to the assessee. Assessee is directed to update latest email id and contact detail on ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is hereby set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 14th day of October, 2025.