Loading judgment…
Facts
The assessee filed an application in Form 10AB for approval under section 80G of the Income Tax Act, 1961, belatedly after the due date. The CIT(E) rejected the application, noting that no condonation petition for delay was filed and that the trust had not carried out any charitable activities as per their income and expenditure statement.
Held
The Tribunal noted that the assessee had obtained provisional approval earlier but failed to file the application for final approval within the stipulated time. The CIT(E)'s rejection of the belated application was found justified due to the lack of evidence for condonation of delay and the absence of demonstrable charitable activities.
Key Issues
Whether the rejection of a belated application for approval under section 80G for failure to file a condonation petition and lack of demonstrable charitable activities is justified?
Sections Cited
80G, 119(2)(b)
AI-generated summary — verify with the full judgment below
Before: Shri Inturi Rama Rao & Shri S.S. Viswanethra Ravi
आयकर अपीलीय अिधकरण, ’डी’ �ायपीठ, चे�ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI �ी इंटूरी रामाराव, लेखा सद� एवं �ी एस.एस. िव�ने� रिव, �ाियक सद� के सम� । Before Shri Inturi Rama Rao, Accountant Member & Shri S.S. Viswanethra Ravi, Judicial Member आयकर अपील सं./I.T.A. No.3550/Chny/2025 िनधा�रण वष�/Assessment Year: - Ganapathy Educational and Charitable Vs. The Commissioner of Trust, 182, East Thottam, Income Tax (Exemption), Mavilamparai, Kalapuram, Udumalpet, Chennai. Tirupur 642 102. [PAN:AABTG3011A] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : Shri Paramasivam, Advocate (Virtual) ��थ� की ओर से/Respondent by : Shri AR V Sreenivasan, CIT सुनवाई की तारीख/ Date of hearing : 21.01.2026 घोषणा की तारीख /Date of Pronouncement 02.02.2026 : आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 30.09.2025 passed by the ld. Commissioner of Income Tax (Exemption), Chennai rejecting the applications dated 28.03.2025 in Form No. 10AB under Rule 11AA of the IT Rules, 1962 under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 [“Act” in short] seeking approval under section 80G of the Act.
We note that the assessee filed online application on 28.03.2025 in Form No. 10AB seeking approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Act. The ld. CIT(E), while processing the application, asked the assessee to show-cause as to why its application should not be rejected on account of reasons mentioned in para 2 & 3 of the impugned order. The ld. CIT(E) noted that the assessee has not filed the application on or before the extended due date of 30.06.2024 and filed the application belatedly on 28.03.2025, further, after considering the income and expenditure for the FY 2023-24 and the balance sheet as on 31.03.2024, on merits, the ld. CIT(E) rejected the application filed in Form 10AB seeking approval under section 80G of the Act.
The ld. AR Shri Paramasivam, Advocate submits that the assessee trust is a genuine trust taking up activities for the betterment of people particularly students from rural area. He prayed that the ld. CIT(E) may be directed to condone the delay and grant approval under section 80G of the Act.
The ld. DR Shri AR V Sreenivasan, CIT vehemently opposed the submissions of the ld. AR and submits that the assessee has not filed petition for condonation of delay of filing application Form 10AB and moreover, no charitable activities carried out by the assessee. Thus, he prayed to confirm the order passed by the ld. CIT(E).
Heard both the parties and perused the material available on record. As per para 4.2 of the impugned order, we note that the assessee society has obtained order for provisional approval under section 80G of the Act in Form 10AC on 24.09.2021 for the period from AY 2022-23 to 2024-25 and required to file an application in Form 10AB on or before 30.06.2024. The assessee did not file any evidence of filing of condonation petition to condone the delay under section 119(2)(b) of the Act. Further, we note that the income and expenditure for the FY 2023-24 and the balance sheet as on 31.03.2024 as submitted before the ld. CIT(E) are placed at pages 8 & 9 of the impugned order. From the income and expenditure as well as balance sheet furnished by the assessee, as per the detailed observations made in para 4.7.1, 4.7.2, 4.7.3, 4.7.4 & 4.7.5 by the ld. CIT(E), we noted that there is no activity carried by the assessee for “relief of poor”, “education”, “medical relief”, “Yoga” as well as “preservation of environment”. Therefore, we find the reasons recorded by the ld. CIT(E) on merits in rejecting the belated application, is justified. Thus, we find no infirmity in the order passed by the ld. CIT(E) and accordingly, the grounds raised by the assessee are dismissed.
In the result, the appeal filed by the assessee is dismissed. Order pronounced on 02nd February, 2026 at Chennai.