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Facts
The assessee-trust applied for registration under Section 80G(5)(iii) of the Income Tax Act, 1961. The initial provisional approval under Form 10AC had expired, and the subsequent application in Form 10AB was rejected due to the delay in filing, which the CIT(E) had no power to condone. An earlier application under Section 80G(5)(iv)(B) was also rejected because the associated application under Section 12A(1)(ac)(vi-ITEM(B)) was already rejected.
Held
The Tribunal noted that the assessee had commenced activities and filed applications within the extended time limit. Despite the CIT(E)'s inability to condone the delay, the Tribunal found genuine reasons for the delay and decided to condone it. The CIT(E) was directed to admit the applications and examine the conditions for approval under Section 80G(5)(iii).
Key Issues
Whether the delay in filing the application for registration under Section 80G(5)(iii) can be condoned and the application considered on merits.
Sections Cited
80G(5)(iii), 80G(5)(iv)(B), 12A(1)(ac)(vi-ITEM(B)), 12A(1)(b), 12A(1)(ac)(i)
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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: DR. ARJUN LAL SAINI & SHRI DINESH MOHAN SINHA
ORDER Per, Bench:
Captioned two appeals filed by two different assessees-trust, are directed against the separate orders passed by the Commissioner of Income-tax (Exemption), dated 29.06.2025 & 30.06.2025; respectively, wherein the Ld. CIT(E) rejected assessee’s application under Section 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).
The facts of the case which can be stated quite shortly are as follows: The assessee-trust has opted for two step approval under new regime of registration/approval, that is, obtaining provisional approval first and then to regularize same adhering the due dates mentioned therein, the applicant was supposed to file present application within six month from 01.02.2022 which was further extended upto 30.06.2024 vide CBDT circular 07/2024. However, present application has been filed before ld.CIT(E) when the provisional approval granted under Form 10AC was expired. Further, it is pertinent to note that the earlier application of the applicant filed on 22.05.2024 u/s. 80G(5)(iv)(B) of the Act was rejected on 12.11.2024 due to fact that the associated application u/s 12A(1)(ac)(vi-ITEM(B)) of the Act was already rejected and accordingly the applicant was not holding any valid registration neither u/s. 12A(1)(b) of the Act nor u/s 12A(1)ac)(i) of the Act. Hence, the argument of the applicant that the earlier application was rejected due to wrong section is incorrect. Also, the said fact does not give an advantage to the applicant to argue the maintainability of the present application as both the applications have been filed under two different sections of the Act and are supposed to be decided based on existing statue. Hence, Ld.CIT(E ) noted that the argument of the applicant is devoid of merits.Moreover, there is also no Page 2 of 5 order of Hon'ble ITAT condoning the delay in this case. Hence, as has been already pointed out that the time limits prescribed in section 80G(5) of the Act, are mandatory and the Commissioner of Income Tax has no power to condone the delay in filing application in Form No. 10AB. Such powers rest with CBDT only. Also, the assessee in this case has also failed to avail the benefit of Circular No. 7/2024 dated 25th April 2024. In view of the above facts, it was held by ld.CIT(E) that the present application in Form No. 10AB has not been filed within the time limit prescribed therein and therefore, the same was rejected as non-maintainable without going into the merits and the provisional approval issued in Form 10AC was also cancelled by ld.CIT(E ).
Aggrieved by the order of the learned CIT(E ), the assessee is in appeal before us.
Learned Counsel for the assessee submitted that Ld.CIT(E) has passed the ex-parte order, despite of filing details and documents and did not condone the delay, which was on technical grounds. Learned Counsel also submitted that registration under section 12A had already been granted to the assessee and only application for approval under section 80(G) (5)(iii) of the Act was rejected, therefore the assessee prays the Bench that matter may be remitted back to the file of the Ld.CIT(E) with the direction to consider the application of the assessee and adjudicate the issue as per the provisions of the Act.
On the other hand, Leaned DR for the Revenue did not raise any objection, if the matter is restored back to the file of the Ld. CIT(E) for de novo adjudication.
We have heard both the parties and perused the materials available on record. We note that assessee- trust commenced its activities with effect from 7th April, 2022. The application for provisional registration under section 80G(5)(iv) was filed in form 10A as on 30-03-2022 which got approved on 06- 04-2022 which was valid till AY 2024-25. Subsequently, application in Form 10AB was filed under section 80G(5)(iv)(B) as on 22-05-2024 which was rejected as on 12-11-2024, on account of rejection of application under section 12A of the Act. The reason for rejection of application under section 12A was wrong selection of clause under the said application and this was due to technical difficulties faced for filing registration applications online. The fact required to be highlighted from the above information is that such applications were duly filed within the extended time limit, that is, 30-06-2024, as per Circular No. 07/2024 dated 25-04-2024. Thereafter, instead of filing an appeal against orders of rejection, the appellant trust preferred to file fresh applications with correct clause in form 10AB under both the sections. The form 10AB under section 80G(5)(iii) was filed as on 18-11-2024. This resulted in delay in filing of application as per the provisions of the section.
We find that the registration has been duly granted under section 12AB(1)(b) against the application in form 10AB filed by the assessee-trusts. However, only application under section 80G(5)(iii) of the Act was rejected on account of technical ground being delay in filing of application and that there were no powers with Ld. CIT(E) to condone such delay. Considering these genuine facts, we condone the delay and we direct the ld.CIT(E ) to admit both the assessees` application in Form No. 10AB, u/s 80G(5)(iii) of the Act and to examine the conditions of 80G(5)(iii) of the Act and if the assessee is eligible Page 4 of 5 then grant the approval under section 80G(5)(iii) of the Act, in accordance with law.
In the combined result, both the appeals filed by the assessees, are allowed, for statistical purposes, in above terms.
Order is pronounced in the open court on 24/11/2025.