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Facts
The assessee filed an application for approval under Section 80G(5) of the Income Tax Act on 04.10.2024, which was a delay of 4 days beyond the extended due date. The CIT (Exemption) rejected the application solely on the grounds of delay, without examining the merits.
Held
The Tribunal condoned the delay of 4 days, finding it to be unintentional. The order of the CIT (Exemption) was set aside, and the matter was remanded back to the CIT for a fresh decision on the merits after providing the assessee an opportunity of being heard.
Key Issues
Whether the delay in filing the application for approval under Section 80G(5) of the Income Tax Act should be condoned, and if so, whether the matter should be decided on merits.
Sections Cited
80G, 80G(5)
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Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 08.04.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for approval u/s 80G of the IT Act.
The appellant has raised the following grounds of appeal :-
“1. The Hon’ble and learned CIT(Exemption), Pune erred in rejecting the application for approval u/s 80G of the Act, which frustrates the trustee who work for social cause.
2. The Hon’ble and learned CIT(exemption), Pune rejected the application for final approval u/s 80G on the issue of being time barred, without going into merits of the case and erred by not condoning the delay of merely 4 days.
3. It is humbly requested that the Hon’ble ITAT bench may be pleased to exercise its power to condone the delay of merely 4 days and remand back the matter for adjudication on merits before Hon’ble and Learned CIT(exemption), Pune.
The Appellant craves leave to add, alter, amend and delete any of the grounds of appeal.”
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 IT Act on 04.10.2024. With a view to verify the genuineness of the activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G(5) of the IT Act, a notice was issued through ITBA portal on 24.12.2025 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee as mentioned in the notice. Not being satisfied with the reply of the assessee, learned CIT exemption rejected the application for approval under section 80 G 5of the IT act by observing as under 7. The assessee's contention is duly considered. It is, however not acceptable considering the following: 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 31/03/2025. As per the provisions of clause (ii) 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 31/03/2025, the present application was required to be filed before 30/09/2024. However, the present application filed by the assessee is on 04/10/2024 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 04/10/2024 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 2021-22. 7.1 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 28/02/2023. 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 27/08/2023. 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 04/10/2024 i.e. after the expiry of period under clause (ii) 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..
8. 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 (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961.
In view of the above, the application dated 04/10/2024 filed in Form no 10AB by the assessee is hereby rejected.
3.1 It is the above order against which the assessee is in appeal before the Tribunal. 4. learned AR appearing from the side of the assessee submitted before us that the order passed by learned CIT exemption is unjustified. Learned AR submitted before us that as per the provisions the application for regular approval under section 80G(5) is required to be filed, at least six months prior to expiry of period of the provisional approval . Since, the period of provisional approval was due to expire on 31/03/2025, the present application was required to be filed on or before 30/09/2024. However, the present application filed by the assessee is on 04/10/2024 that is with a delay of only 4 days. Accordingly learned AR requested before the bench to to condone the delay of only 4 days and decide the application for approval under section 80 G5 of the IT Act on the merits of the case. LD AR also furnished copy of section 12AB registration before the bench.
Learned DR appearing from the side of the revenue relied on the order passed by learned CIT exemption, however no serious
We have heard the learned counsels from both the sides and perused the material available on record. In this regard we find that as per the provisions of section 80G (5) of the Act, where a trust or institution has been provisionally approved , than the application for regular approval under section 80G (5) is required to be filed at least six months prior to expiry of period of the provisional approval. In this case Provisional registration was valid up to 31st March 2025 & accordingly the assessee was required to apply on or before 30 September 2024 and the assessee applied on 4th October 2024 resulting in a delay of 4 days. We further find that learned CIT exemption has rejected the application merely on the ground of delay and nothing adverse was found by him on the merits of the case. It was the contention of learned counsel of the assessee that the delay of 4 days was small and unintentional and on merits no adverse finding was given by LD CIT(E) therefore request was made by him to condone the aforesaid delay and decide the application on the merits of the case.
In this regard respectively following the judgement of Hon’ble Supreme court passed in the case of Inder Singh v. State of Madhya Pradesh 2025 INSC 382 order dated 21-03-2025, We find force in the arguments of the LD Counsel of the assessee & accordingly condone the delay of 4 days.
In the light of above discussion & considering the totality of the facts of the case , we deem it appropriate to set aside the order passed by learned CIT exemption and remand the matter back to him with a direction to treat the application as filed in time and decide the application afresh after providing reasonable opportunity of hearing to the assesse. The assessee is hereby also directed to respond to the notices issued by Ld. CIT(E) in this regard and produce requisite documents/evidences in support of application for approval without taking any adjournment under any pretext, otherwise Ld. CIT(E) shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal
raised by the assessee in this appeal are partly allowed for statistical purposes.
9. In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced on this 25th day of July, 2025.