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Facts
The assessee, ADM Foundation, a Section 8 Company, filed an application for registration under section 80G of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemption) rejected the application solely on the ground of delay in filing Form 10AB, without considering the merits.
Held
The Tribunal observed that the CIT(E) rejected the application on the ground of delay without discussing the merits. The assessee provided evidence of commencement of activities and a donation made, which was not filed before the CIT(E). Therefore, the Tribunal set aside the order for de novo adjudication.
Key Issues
Whether the CIT(E) was justified in rejecting the application for registration under section 80G solely on grounds of delay without adjudicating on merits, especially when the assessee claimed delay due to technical glitches and provided evidence of activity commencement.
Sections Cited
80G, 80G(5), 80G(5)(ii), 12A, 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “A” :: PUNE
Before: MS.ASTHA CHANDRA & DR.DIPAK P. RIPOTE
Assessment Year: N.A. ADM Foundation, V The Commissioner of 7th Office No.703, Floor, s Income Tax(Exemption) Tower-2, Montreal Business Center, BAner, Murkutenagar, Pune – 411045. PAN: AARCA5387Q Appellant/ Assessee Respondent / Revenue Assessee by Shri Nemin Shah & Ms.Smruti Sabnis Revenue by Shri Aditya Shukla – CIT(DR) Date of hearing 18/09/2025 Date of pronouncement 24/09/2025 आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the assessee against the order of ld.Commissioner of Income Tax(Exemption), Pune rejecting the application under section 80G of the Income Tax Act, 1961, dated 30.08.2025. The Assessee has raised the following grounds of appeal : Ground 1. Learned CIT(Exemption), Pune has erred in rejecting the application made under section 80G(5)(ii) of the Income Tax Act, 1961 vide order dated 30th August 2025.
Ground 2. The Learned CIT(Exemption), Pune has erred in rejecting the renewal application solely on the ground of delay in filing Form 10AB without appreciating that the delay was due to technical glitch on the income tax portal which constitutes sufficient and reasonable cause for the delay. Ground 3. The appellant craves leave to add, alter, vary, omit, amend, or delete the above grounds of appeal at any time before, or at the time of, hearing of the appeal, so as to enable the Hon'ble Income-tax Appellate Tribunal (Appeals) to decide this appeal according to law.” Findings and Analysis:
2. We have heard both the parties and perused the records. Assessee ADM Foundation is a Section 8 Company, registered under Companies Act, 2013.Assessee is duly registered under section 12A r.w.s 12AB of the Act, vide order dated 23.06.2025 upto A.Y.2030-31.
In this case, Assessee had filed application in Form No.10AB under section 80G(5) of the Income Tax Act, on 21.03.2025 to obtain registration/s.80G of the Act. Ld.CIT(Exemption) rejected the Assessee’s application on account of delay. In this case, Assessee had received provisional registration under section 80G on 29.04.2024 which was valid till A.Y.2025-26.
Section 80G(5) of the Income Tax Act, 1961 as amended by the Finance Act, 2024 w.e.f 01.10.2024 is reproduced here as under : 2 “[(iv) 8[***] 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) commenced9[***]at any time after the commencement of such activities:] Provided further that the Principal Commissioner or Commissioner, on receipt of an application made under the first proviso, shall,— (i) where the application is made under clause (i) of the said proviso, pass an order in writing granting it approval for a period of five years;….” 4.1 Thus, as per Amended Provision, Assessee can apply anytime after the commencement of such activities.
However, it is observed that ld.CIT(E) has rejected the application of the Assessee only on the ground of delay without discussing merits of the case. During the hearing, Ld.AR claimed that Assessee has given a Donation of Rs.5 lakhs to Mahratta Chamber of Commerce Ind & Agriculture on 14.05.2021. Hence, ld.AR pleaded that activities commenced on 14.05.2021. Ld.AR filed copy of Receipt which was not filed before the ld.CIT(E).
In these facts and circumstances of the case, we deem it appropriate to set-aside the order to ld.CIT(E) for deonovo adjudication. Ld.CIT(E) shall provide opportunity to the Assessee. The Assessee shall file necessary documents before the ld.CIT(E).
In the result, appeal of the Assessee is allowed for statistical purpose. Order pronounced in the open Court on 24 September, 2025.