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Facts
The assessee, a charitable trust, filed an application for final registration under Section 80G after the expiry of its provisional registration. The delay was attributed to a bonafide mistake in understanding the expiry date of the provisional registration.
Held
The Tribunal condoned the delay in filing the application, stating there was no malafide intention and procedural delay should not defeat substantive rights. The issue of final approval was restored to the CIT(E) for reconsideration.
Key Issues
Whether the delay in filing the application for final registration under Section 80G was justifiable and whether the CIT(E) erred in rejecting the application without proper consideration.
Sections Cited
80G, 12A, 10AB
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Income Tax Appellate Tribunal, B BENCH, PUNE
Before: Dr. MANISH BORAD & SHRI VINAY BHAMORE
Assessee by : Shri Rajendra Nivrutti Hase Revenue by : Shri Amit Bobde-CIT Date of hearing : 14.07.2025 Date of : 23.07.2025 pronouncement आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of assessee is directed against the order of Ld. CIT(E) Pune u/s 80G of the Income Tax Act, 1961 dated 10.03.2025.
There is a delay of 26 days in filing of this appeal. Application for condonation of delay stands filed. Considering the reasonable cause, delay is condoned and appeal is admitted for adjudication.
Assessee has raised following grounds of appeal
1. On the facts and in the prevailing circumstances of the case and in law, the learned CIT-Exemption, Pune has erred in rejecting the application in form no 10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the I.T. Act for permanent registration without considering the submission of the assessee in the right perspective and without giving reasonable opportunity of being heard. The order of the CIT Exemption, Pune may kindly be set aside and permanent registration u/s 80G may kindly be granted.
2. The Appellate craves the right to add, amend, modify, alter, revise, substitute, delete any or all grounds of the appeal, if deemed necessary at the time of hearing of the appeal.
4. Sole issue for our consideration is that Ld. CIT(E) erred in rejecting the application filed by the assessee for approval u/s 80G(5) of the Act.
5. At the outset Ld. Counsel for the assessee submitted that due to bonafide mistake the assessee considered the period of provisional registration granted u/s 80G of the Act as 31.03.2025 because it was granted from 18.01.2022 to assessment year 2024-25. The assessee was required to file the application for final registration before six months from the date of expiry of the provisional registration. The assessee filed the application on 30.09.2024. However application was delayed by three months as the last date of provisional registration was 31.03.2024 and the period for filing application on Form 10AB was extended by CBDT Circular No. 7 of 2024 upto 30.06.2024. He therefore prayed that delay of three months may please be condoned and one more opportunity may be granted to appear before CIT(E).
On the other hand Ld Departmental Representative (DR) supported the order of the lower authorities.
We have heard rival contentions and perused the record placed before us. The assessee is a charitable trust engaged in the charitable activities of running Shelter Home for street/beggar children. Assessee has been granted registration certificate u/s 12A of the Act on 04.01.2022 effective for A.Y. 2022-23 to A.Y. 2026-27. Provisional registration u/s 80G for the period 18.01.2022 to A.Y. 2024- 2025 granted on 18.01.2022. The date of commencement of activity is 22.12.2013. As the provisional registration was granted upto A.Y. 2024-25, the assessee was required to file the application for final approval u/s 80G of the Act on or before 30.09.2023. The extended time limit by CBDT vide circular No. 7 was 30.06.2024 but the application for final approval u/s 80G was filed by the assessee on Form 10AB to CIT(E) on 30.09.2024.
As per the submissions of Ld. Counsel for the assessee the last date for expiry of provisional registration u/s 80G was misunderstood to be 31.03.2025 as the period mentioned in the provisional registration was from 18.01.2022 to A.Y. 2024- 25. However the provisional registration actually expired on 31.03.2024 and therefore the application of the assessee was considered to be belated by CIT(E). We observe that there was no malafied intention for the said delay and that the procedure declared should not defeat the substantive rights of the assessee. Therefore taking guidance from the judgement of Hon’ble Apex Court in the case of Collector, Land Acquisition vs. Mst. Katiji & others(1987) 167 ITR 471 (SC) and in the case Inder Singh State of Madhya Pradesh judgement dated 21.03.2025 (2025) INSC 382 we are inclined to hold that delay in filing the application deserves to be condoned. We thus restore the issue of final approval u/s 80G(5) of the Act raised in the instant appeal back to the file of Ld. CIT(E) for necessary reconsideration and adjudication in accordance with law for which sufficient opportunity shall be granted to the assessee to file necessary details and documentary evidence and other submissions as required. 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 23rd day of July, 2025.