Loading judgment…
Facts
The assessee filed an application for approval under section 80G(5)(iii) of the Income Tax Act, 1961. The CIT(E) rejected the application for non-submission of Form 10AC, which is a provisional registration certificate. The assessee contended that they were not given adequate opportunity and that their registration under section 12A was already granted.
Held
The Tribunal condoned the delay in filing the appeal. It was held that the CIT(E) rejected the application on technical grounds without a proper examination of the assessee's activities and that the principles of natural justice were violated by providing less than 24 hours to respond to the show-cause notice. The Tribunal found it imperative to provide another opportunity to the assessee.
Key Issues
Whether the rejection of the application for approval under Section 80G(5)(iii) was justified on technical grounds without proper opportunity to the assessee.
Sections Cited
80G(5)(iii), 12A, 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA ‘D’ BENCH AT KOLKATA
Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Exemption)-Kolkata [hereinafter referred to as the ‘Ld. CIT (Exemption)/CIT(E)’] passed in respect of registration u/s 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 28.08.2025. 1.1 The Registry has informed that the appeal is barred by limitation by 27 days. The assessee has filed an affidavit for condonation of delay explaining the reasons that the rejection order was uploaded on the ITBA portal but the email notification was inadvertently missed by the office bearers of the Ashram due to change in staff handling email/technical glitch/festival etc. and the Secretary of the Ashram who handles legal matters, was engaged his personal matter during the months of September and October, rendering them unable to attend to ITA No.: 2858/KOL/2025 Assessment Year: 2025-26 Sri Sri Ramakrishna Ashrama Ahmadpur. the official duties. After perusing the same, we are satisfied that the assessee had a reasonable and sufficient cause and was prevented from filing the instant appeal within the statutory time limit. We, therefore, condone the delay and admit the appeal for adjudication.
The assessee is in appeal before the Tribunal raising the following grounds of appeal:
“1. That the order passed by the Ld. Commissioner of Income Tax (Exemption), Kolkata (hereinafter referred to as Ld. CIT(E)] under section 80G(5)(iii) of the Income Tax Act, 1961, dated 28.08.2025, rejecting the application for approval in Form No. 10AB, is arbitrary, illegal, perverse, and bad in law.
That the Ld. CIT(E) erred in law and facts by failing to provide a reasonable opportunity of being heard to the Appellant. The Ld. CIT(E) issued the final show-cause notice on 27.08.2025 and proceeded to pass the rejection order on the very next day, ie 28.08.2025. providing less than 24 hours to respond to a notice is a gross violation of the principles of natural justice and renders the order void ab initio.
That the Ld. CIT(E) erred in treating the application in Form 10AB as "non- maintainable" and "invalid" solely on the technical ground of non- submission of Form 10AC (Order for Provisional Registration). The Ld. CIT(E) failed to appreciate that the requirement to file Form 10AC is a procedural requirement which could have been rectified had reasonable time been granted.
That the Ld. CIT(E) erred in summarily rejecting the application by stating that "records available with department system" show no Form 10AC. As the Approving Authority, the Ld. CIT(E) had access to the Department's internal database to verify the history of the Appellant's registration status under the transition from Section 12A to 12AB/80G, rather than rejecting the application merely on a technicality.
That the Ld. CIT(E) failed to examine the objects and the genuine charitable activities carried out by the Appellant Trust. The rejection was based purely on technical non-compliance without any adverse finding regarding the charitable nature of the Trust or the genuineness of its activities. The Appellant, therefore, prays that the order of the Ld. CIT(E) be set aside and the Ld. CIT(E) be directed to grant approval under section 80G(5)(ii) of the Act, or in the alternative, restore the matter to the file of the Ld. CIT(E) ITA No.: 2858/KOL/2025 Assessment Year: 2025-26 Sri Sri Ramakrishna Ashrama Ahmadpur. for fresh adjudication after providing a reasonable opportunity of being heard. The Appellant craves leave to add, alter, amend, or withdraw any of the grounds of appeal at or before the time of the hearing.”
Brief facts of the case are that the assessee has filed an application on 31.03.2025 for approval u/s 80G(5)(iii) of the Act in Form No. 10AB. Accordingly, vide letter dated 08.07.2025 certain clarifications were sought from the assessee in response to which the assessee furnished the details which were examined and it was observed from the submission that the assessee had not submitted Form No. 10AC which is the order of provisional registration issued for approval u/s 80G of the Act. A letter was further issued to the assessee to furnish Form No. 10AC but the assessee remained non-compliant. The Ld. CIT (Exemption) noted that as per the provisions of Income Tax Act, 1961, the approval u/s 80G cannot be granted unless the applicant has obtained the provisional certificate in Form No. 10AC. Further, the Ld. CIT (Exemption) noted that as per the record available with the Department, the assessee had not been issued any Form No. 10AC (order of provisional registration) for approval u/s 80G and therefore, in absence of Form No. 10AC certificate, the application filed in Form No. 10AB was treated as non-maintainable and the application u/s 80G(5)(iii) of the Act was rejected. Aggrieved with the order of the Ld. CIT(E), the assessee has filed the appeal before the Tribunal.
Rival contentions were heard and the submissions made have been examined. It was contended that the registration u/s 12A was granted on 25.09.2020 and, therefore, the approval u/s 80G could not have been denied. It was also stated that adequate opportunity was not allowed to file the further details as only a day’s time was allowed to file the remaining details. The Bench was of the view that the Ld. CIT ITA No.: 2858/KOL/2025 Assessment Year: 2025-26 Sri Sri Ramakrishna Ashrama Ahmadpur. (Exemption) had denied the claim of exemption u/s 80G(5)(iii) of the Act on account of non-compliance by the assessee. Therefore, in the interest of justice, it was considered imperative in the interest of justice and fair play, the assessee may be allowed another opportunity to file proper submission in response to the notice issued by the Ld. CIT (Exemption) for justifying the genuineness of the activities and claim of exemption. Hence, the order of the Ld. CIT (Exemption) is set aside and the matter is remanded to him for deciding the application afresh after granting an opportunity of being heard to the assessee and seeking the reply from the assessee in respect of the queries raised and in accordance with law. Hence, all the grounds of appeal are partly allowed for statistical purpose.
In the result, the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open Court on 25th February, 2026. [Sonjoy Sarma] [Rakesh Mishra] Judicial Member Accountant Member Dated: 25.02.2026 Bidhan (Sr. P.S.) ITA No.: 2858/KOL/2025 Assessment Year: 2025-26 Sri Sri Ramakrishna Ashrama Ahmadpur. Copy of the order forwarded to:
Sri Sri Ramakrishna Ashrama Ahmadpur, At and Post 1, Kuchuighata, Ahmadpur, Kuchuighata B.O, Birbhum, West Bengal, 731201. 2. CIT (Exemptions), Kolkata.
CIT(A)-
CIT-
CIT(DR), Kolkata Benches, Kolkata.
Guard File. //// By order