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Facts
The appellant filed an application for approval under Section 80G(5)(iii) of the Income Tax Act, 1961. The CIT(E) dismissed the application, citing non-commencement of activities and late filing.
Held
The Tribunal held that the CIT(E) allowed a similar application for registration under Section 12AB on the same date without raising the issue of non-commencement of activities. Therefore, the rejection of the 80G(5)(iii) application was set aside.
Key Issues
Whether the denial of approval under Section 80G(5)(iii) for non-commencement of activities is justified when a similar registration under Section 12AB was granted on the same day without such objection.
Sections Cited
80G(5)(iii), 12A, 12AB, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”A-Bench” JAIPUR
Before: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM
vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER .
Appellant herein filed an application on 30.12.2024, online in Form 10AB, seeking approval u/s 80G(5)(iii) of the Income Tax Act, 1961, (hereinafter referred to as the “Act”). Vide impugned order dated 24.06.2025, said application has been dismissed, while observing in para 3 that the applicant had failed to prove commencement of activities.
Shri Sitaram Santsang Bhawan Trust, Bhilwara.
Feeling aggrieved by the rejection of said application, appellant- applicant is before this Appellate Tribunal.
Arguments heard. File perused.
Ld. AR for the appellant has submitted that separate application submitted by the applicant seeking registration u/s 12A of the Act has already been allowed, vide order dated 24.06.2025. In this regard, Ld. AR has placed reliance on copy of the order for registration under section 12AB of the Act, available at page 15 to 18 of the paper book.
There is nothing in the order for registration u/s 12AB that the applicant had not commenced activities. In other words, no such issue was raised by Learned CIT(E), while allowing application u/s 12AB on 24.6.2025. Significant to note that the impugned order, under challenge before this Appellate Tribunal, was also passed on the same date i.e. 24.06.2025, but, Learned CIT(E) took into consideration the issue of non commencement of activities only in the application under section 80G(5) of the Act, and made it a ground for rejection of the said application. When attention of Ld. DR for the department has been drawn to these facts, Learned DR has not been able to put forth any justification for Shri Sitaram Santsang Bhawan Trust, Bhilwara. rejection of the application under section 80G(5)(iii) on the ground of non commencement of activities, while, at the same time having allowed registration of the applicant trust on separate application u/s 12AB of the Act, without raising any such objection or ground.
As is available from the impugned order, learned CIT(E) also observed that application u/s 80G(5)(iii) of the Act, came to be filed beyond prescribed period of limitation. As observed in the impugned order, such like application is to be filed at least 6 months prior to the expiry of period of the provisional approval or within 6 months of commencement of the activities, whichever is earlier. Herein, the application U/s 80G(5)(iii) of the Act, came to be presented on 30.12.2024. The appellant-trust was found to have obtained provisional registration on 25.02.2022, whereas it is said to have commenced its activities since 01.02.1970, as per its reply dated 13.05.2025. In this way, Learned CIT(E) found that it was a case of late filing of the application i.e. after expiry of 6 months period from the commencement of activities.
As already noticed above, on the same day, Learned CIT(E) allowed registration of the applicant trust u/s 12AB of the Act. Once the prayer of the applicant for its registration under the said provision was allowed on the Shri Sitaram Santsang Bhawan Trust, Bhilwara. same date, we find merit in the contention raised by the Ld. AR for the appellant that the application 80G(5)(iii) of the Act also deserved to be allowed.