Vaibhav Shikshan Prasarak Mandal Vs CIT (Exemption) (ITAT Pune)
Delay in Filing Form 10AB Cannot Be Alleged When Prior 80G Approval Itself Was Granted Late:
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) allowed the appeal of a charitable institution and set aside the order of the CIT (Exemption) which had rejected the assessee’s application for regular approval under section 80G(5) solely on the ground of alleged delay in filing Form 10AB.
The assessee was earlier granted final approval under section 80G(5) on 18.11.2024 for AY 2025-26. Thereafter, it filed the application for subsequent regular approval on 19.12.2024. The CIT(E) rejected the application holding that it should have been filed on or before 30.09.2024, i.e., six months prior to expiry of the approval period.
The Tribunal held that such reasoning was manifestly erroneous, since it was practically impossible for the assessee to file Form 10AB by 30.09.2024 when the earlier approval itself was granted only on 18.11.2024. The ITAT further noted that:
- The assessee continued to hold valid registration under section 12AB, including renewal up to AY 2030-31.
- There was no adverse finding on merits, objects, or activities of the trust.
- The CIT(E) mechanically rejected the application without appreciating the chronology of approvals.
Relying on its own coordinate bench decision in R.L. Education Sanstha v. CIT (Exemption), the Tribunal held that no delay can be attributed to the assessee in such circumstances and that procedural timelines cannot override impossibility of performance.
