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Facts
The assessee's application for approval under Section 80G(5)(iii) was rejected by the CIT(E) due to the lack of a valid Section 12A/10(23C) registration, which is a prerequisite. This appeal also had a 150-day delay in filing. The assessee's previous appeal regarding Section 12A registration was already remanded back to the CIT(E) for fresh adjudication.
Held
The Tribunal found that the 80G(5) rejection was solely based on the pending Section 12A registration matter, which had previously been remanded to the CIT(E). Consequently, the Tribunal remanded the 80G(5) application back to the CIT(E) for fresh adjudication after the Section 12A issue is resolved.
Key Issues
Whether the rejection of a Section 80G(5) approval application is valid when the underlying prerequisite for Section 12A registration is currently under re-adjudication by the CIT(E).
Sections Cited
80G(5)(iii), 80G(5), 12A, 10(23C), 80G(5)(ii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH, AHMEDABAD
O R D E R
PER SHRI NARENDRA PRASAD SINHA, AM:
This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Exemption), Ahmedabad (in short “the CIT(E)”) dated 15.11.2024, rejecting the application of the assessee for approval under Section 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
There was a delay of 150 days in filing of this appeal. The assessee has filed an affidavit explaining the reason for delay. It is submitted that the trustees were not regular in monitoring the e-mail id. and could not timely access the order of the Ld. CIT(E), rejecting the application of the Momin Samaj Federation vs CIT(E) Page 2 of 4 assessee. As a result, there was delay in filing of the present appeal. Though we are not convinced with the explanation of the assessee, considering the merits of the case, we condone the delay in filing this appeal.
The brief facts of the case are that the assessee had filed an application in Form No.10AB for approval under Section 80G(5)(iii) of the Act. The Ld. CIT(E) had rejected the application for the reason that the assessee was not having any valid order for registration/approval under Section 12A/10(23C) of the Act which was a pre-requisite for grant of approval under Section 80G(5) of the Act. Therefore, the application of the assessee was rejected vide the impugned order.
Aggrieved with the order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken in this appeal: -
1. Learned CIT(Exemption) has erred in rejecting the application made under section 80G(5)(ii) of the Income Tax Act, 1961 in an arbitrary manner.
2. The Learned CIT(Exemption) erred in rejecting the application filed in Form 10AB without recording any finding on the genuineness of the appellant's activities or considering the documents already submitted with the application.
3. Learned CIT(Exemption) has erred in not providing sufficient opportunity for the appellant to explain and submit the documentary evidence.
4. 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.”
Shri Varishusen Momin, Ld. AR of the assessee, submitted that the assessee had filed an appeal against the order dated 13.04.2024 passed by the CIT(E), rejecting the application of the assessee for registration of Momin Samaj Federation vs CIT(E) Page 3 of 4 the Trust under Section 12A of the Act. The said matter was decided by the Co-ordinate Bench of this Tribunal in dated 16.10.2025 whereby the matter was remanded back to the file of the Ld. CIT(E) for proper verification of the details filed by the assessee and to adjudicate the matter afresh. The Ld. AR submitted that since the matter regarding registration of the Trust u/s 12A of the Act was set aside to the file of Ld. CIT(E), the present matter in respect of approval under Section 80G(5) of the Act, may also be restored to the file of the Ld. CIT(E).
Per contra, Shri Rignesh Das, Ld. CIT-DR had no objection if the matter was set aside to the file of the Ld. CIT(E) with a direction to re- decide the approval under Section 80G(5) of the Act, after first adjudicating the assessee’s application for registration under Section 12A of the Act.
We have considered the request of the assessee. It is found that the Ld. CIT(E) had rejected the application for approval under Section 80G(5) of the Act only for the reason that the assessee was not having a valid registration under Section 12A of the Act, which was a pre-requisite for granting approval under Section 80G(5) of the Act. As per the facts brought on record, the assessee’s application for registration under Section 12A of the Act was earlier rejected by the Ld. CIT(E) and the Co- ordinate Bench of this Tribunal vide order in dated 16.10.2025 had set aside that matter to the file of the Ld. CIT(E). Since the issue of registration under Section 12A of the Act is already pending before the Ld. CIT(E), we deem it proper to set aside the present matter also to the file of the Ld. CIT(E) with direction to re-adjudicate the assessee’s application for approval under Section 80G(5) of the Act, after Momin Samaj Federation vs CIT(E) Page 4 of 4 first deciding the assessee’s application for registration under Section 12A of the Act.
In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open Court on this 22nd December, 2025.