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Facts
The assessee, St. Ann's Education Trust, applied for final approval under section 80G(5) of the Income Tax Act for subsequent periods on 08.03.2025. This application was rejected by the CIT (Exemption) on the grounds of delay, as it should have been filed by 30.09.2024, despite the assessee having received its initial 80G(5) approval for A.Y. 2025-26 on 14.02.2025. The assessee contended that it was practically impossible to file the application by the earlier deadline.
Held
The Tribunal found that it was practically impossible for the assessee to file the application by 30.09.2024 given that the preceding approval was granted on 14.02.2025. Noting the assessee's valid registration under section 12AB(1)(b) for various assessment years and the absence of any discrepancy on merits, the Tribunal concluded there was no intentional delay and set aside the order of the CIT (Exemption).
Key Issues
Whether the application for 80G(5) approval was belatedly filed and if the delay was justifiable under the given circumstances, particularly when the previous approval was granted close to the filing deadline.
Sections Cited
80G(5), 80G(5)(ii), 12AB(1)(b)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
PER DR. MANISH BOARD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee is directed against the order dated 16.09.2025 framed by CIT (Exemption), Pune denying application filed on Form No.10AB for approval u/s.80G(5)(ii) of the Act.
The only grievance of the assessee is that ld.CIT (Exemption) erred in rejecting the assessee’s application under clause (ii) of first proviso to sub-section (5) of section 80G of the Act on account of delay in filing the application.
At the outset, ld. Counsel for the assessee submitted that the final registration under second proviso to section 80G(5) of the Act was granted to the assessee on 14.02.2025 for the A.Y. 2025-26 and the assessee filed the subsequent application for final approval u/s.80G(5) of the Act on 08.03.2025. However, the same has been rejected on account of the reason that it has been filed belatedly, i.e. it should have St. Ann’s Education Trust been filed on or before 30.09.2024. He submitted that since the previous approval was granted on 08.03.2025 it was not possible for the assessee to file application upto 30.09.2024. He further submitted that the assessee has been granted the final registration u/s.12AB(1)(b) of the Act on 25.02.2025 for A.Y. 2026-27 to A.Y. 2030-31. He thus prayed that since there is no intentional delay assessee deserves to be granted approval u/s.80G(5) of the Act.
On the other hand, ld. Departmental Representative supported the order of ld.CIT (Exemption).
We have heard the rival contentions and perused the record placed before us. We observe that the assessee is a Charitable Organisation and enjoying regular registration u/s.12AB(1)(b) of the Act from A.Y. 2021-22 to A.Y. 2025-26 granted on 30.12.2024 and subsequently registration has also been granted u/s.12AB(1)(b) for the A.Y. 2026-27 to A.Y. 2030-31 on 25.09.2025. Assessee vide letter dated 14.02.2025 was granted final registration/approval under second proviso to section 80G(5) of the Act for A.Y. 2025-26 on 14.02.2025. Now the assessee has filed the application for subsequent periods u/s.80G(5) of the Act on 08.03.2025. We note that ld.CIT (Exemption) has rejected the assessee’s application solely on the ground that the assessee’s application is delayed and it ought to have been filed prior to six months of the approval granted for A.Y. 2025-26, i.e. application should have been filed on 30.09.2024. Since the assessee’s application has been filed on 08.03.2025 same has been rejected. We however fail to find any merit in the finding of ld.CIT (Exemption) because he ought to have considered St. Ann’s Education Trust that the previous approval u/s.80G(5) of the Act filed on 14.02.2025 and it was practically impossible for the assessee to file the application for subsequent period on 30.09.2024. Considering the totality of the facts and circumstances and that the assessee has also been granted registration u/s.12AB(1)(b) for the A.Y. 2026-27 to A.Y. 2030-31 on 25.09.2025 and also there is no finding of ld.CIT (Exemption) stating any discrepancy on the merits of the assessee’s case for getting approval u/s.80G(5) of the Act, we are of the considered view that there is no delay in filing of the application u/s.80G(5) of the Act by the assessee and therefore ld.CIT (Exemption) ought to have granted the approval under second proviso to section 80G(5) of the Act. We thus set aside the order of ld.CIT (Exemption) and allow the grounds of appeal raised by the assessee.
In the result, appeal of the assessee is allowed.
Order pronounced on this 06th day of January, 2026.