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Facts
The assessee, Chittapawan Brahmin Sangha, filed an application for regular approval under Section 80G(5) of the IT Act on 13.03.2025. This application was rejected by the Ld. CIT, Exemption, Pune, on 02.09.2025, on the grounds that it was filed after the expiry of the mandatory time limit, as the provisional approval expired on 31.03.2025 and the application was deemed due by 30.09.2024.
Held
The Tribunal observed that with effect from 01.10.2024, clause (iv) of the proviso to Section 80G(5) of the IT Act was amended, allowing applications for regular approval to be filed at any time after the commencement of activities. Based on this amendment, the Tribunal concluded that the assessee's application was filed within the prescribed period, setting aside the CIT's order and remanding the matter for a fresh decision on merits.
Key Issues
Whether the application for regular approval under Section 80G(5) of the Income Tax Act was filed within the prescribed time, considering the amendment to the proviso of Section 80G(5) regarding the filing period.
Sections Cited
Section 80G(5), Section 80G(5)(iii), Section 80G(5)(iv), Section 10(23C), Section 12A, Section 119, Income Tax Act, 1961
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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 02.09.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for regular approval u/s 80G(5) of the IT Act.
Facts of the case, in brief, are that the assessee filed its application for regular approval in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act on 13.03.2025. With a view to verify the genuineness of activities of the assessee and fulfillment of conditions laid down in clauses (i) to of section 80G(5) of the IT Act, a notice was issued through ITBA portal on 28.04.2025 requesting the assessee to upload certain information/clarification on or before 15.05.2025. In reply to the said notice, the desired information was furnished by the assessee. On verification of the information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies, therefore, issued another notice on 16.07.2025 and not being satisfied with the reply dated 06.08.2025, Ld. CIT, Exemption, Pune rejected the application for regular approval by observing as under :- “8. Without prejudice to the above, it is seen that the date of expiry of provisional approval under section 80G(5)(iv) of the Act in the instant case is 31/03/2025. As per the provisions of clause (iii) of first proviso to section 80G(5) of the Act, where a trust or institution has been provisionally approved under section 80G(5) (iv) of the Act, the application for regular approval under section 80G(5) (iv) is required to be filed, at least six months prior to expiry of period of the provisional approval or within six months from the date of commencement of activities, whichever is earlier. Since, the period of provisional approval was due to expire on 31/03/2025, the present application was required to be filed before 30/09/2024. However, the present application filed is on 13/03/2025 i.e. after the expiry of period allowed under clause (iii) of first proviso to section 80G(5) of the Act. Thus, it is seen that the assessee did not filed the present application within the time limit allowed under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961.
From the provisions of clause (iii) of first proviso to section 80G(5) of the Act, it is evident that the time limits prescribed therein are mandatory and the Commissioner of Income Tax has no power to condone the delay in filing application in Form No. 10AB. It is evident that the time limit prescribed under clause (iii) of first proviso to section 80G(5) of the Act for filing Form No.10A and Form No. 10AB, as the case may be, is mandatory and therefore, after considering the hardship to the assessee the CBDT extended the said time limit on multiple occasions, for filing Form No.10A and Form No.10AB, under section 119 of the Act, vide above referred Circulars. As per above referred CBDT Circular No.7/2024, the date for filing Form No.10AB for approval / approval under section 10(23C) or 12A or 80G(5) was extended upto 30th June 2024.
In view of the above, the present application filed in Form No. 10AB under clause (iii) of first proviso to section 80G(5) of the Act is liable to be rejected without going into the merits since the assessee has not filed the present application within the time limit allowed under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961.
In view of the above, the application filed by the assessee under clause (iv) for first proviso to section 80G(5) of the Income Tax Act, 1961 is hereby rejected.”
It is the above order against which the assessee is in appeal before this Tribunal.
We have heard Ld. Counsels from both the sides and perused the material available on record. In this regard, we find that admittedly the application for regular approval was not filed within six months prior to expiry of period of the provisional approval, however, at the same time, we also observe that w.e.f. 01.10.2024 clause (iv) of proviso to section 80G(5) of the IT Act has been amended, which reads as under :- “80G. (1) xxxxx xxxxx (5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely :— xxxxx Provided that the institution or fund referred to in clause (vi) shall make an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for grant of approval,— (i) xxxxx (ii) xxxxx (iii) where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier; 89[or] 90[(iv) 91[***] where activities of the institution or fund have— (A) not commenced, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said approval is sought; (B) commenced 91a[***] at any time after the commencement of such activities:] 5. From plain reading of the above amended proviso to section 80G(5) of the IT Act, it becomes clear that the assessee is permitted to file application for regular approval at any time after the commencement of its activities, and therefore it was not compulsory for the assessee to file the application for regular approval at least six months prior to expiry of the period of provisional approval or within six months of commencement of its activities, whichever is earlier, therefore, we are of the considered opinion that the application for regular approval filed by the assessee was within the prescribed period. Accordingly, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to treat the application for regular approval as filed within prescribed time and decide the application for regular approval afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by