Hamal Mathadi Shramik Vikas Sanstha Vs CIT (Exemption) (ITAT Pune)
Summary: The Pune Bench of the Income Tax Appellate Tribunal (ITAT), comprising Shri R.K. Panda, Vice President, and Ms. Astha Chandra, Judicial Member, allowed the appeal of Hamal Mathadi Shramik Vikas Sanstha against the order dated 17 September 2025 passed by the Commissioner of Income Tax (Exemption), Pune, rejecting its application for approval under Section 80G of the Income Tax Act, 1961. The trust had submitted Form No. 10AB on 21 March 2025 under sub-clause (B) of clause (iv) of the first proviso to Section 80G(5). During verification, the CIT(E) sought information concerning the genuineness of the trust’s activities and fulfilment of the prescribed statutory conditions. Although the trust furnished responses to the notices, its application was rejected because it had not submitted a copy of its registration under Sections 12A or 12AA obtained before 1 April 2021. Instead, it furnished the registration granted on 5 April 2022 under Section 12A(1)(ac)(i). The Commissioner considered the later registration invalid on the ground of alleged misrepresentation of facts.
Before examining the merits, the Tribunal considered a delay of 115 days in filing the appeal. The assessee explained through a condonation application and affidavit that its chartered accountant, aged 77 years, had undergone surgery due to a critical illness and had been advised complete bed rest. After considering the explanation and hearing the Departmental Representative, the Tribunal condoned the delay and admitted the appeal. On the substantive issue, the Tribunal observed that the CIT(E) had already verified the registration granted on 5 April 2022 under Section 12A(1)(ac)(i). In the Tribunal’s view, such registration could not have been issued without verification of the earlier records relating to registration under Sections 12A or 12AA. Accordingly, the earlier registration records were deemed to be available with the CIT(E), and the failure to furnish a separate copy could not justify rejection of the application.
The Tribunal further held that the CIT(E) had rejected the application without due application of mind. It emphasised that the assessee’s registration under Section 12A(1)(ac)(i) had neither been withdrawn nor rejected. Therefore, the Commissioner’s conclusion that the registration had been obtained through misrepresentation and was invalid could not be accepted. The Tribunal distinguished between the existence of a valid registration and the separate procedural requirement of furnishing an earlier certificate, holding that the latter could not override registration already recognised in departmental records. Consequently, the Tribunal directed the CIT(E) to grant approval under Section 80G and allowed the assessee’s appeal. The decision highlights the importance of considering existing registration records when examining charitable trusts’ applications for approval and rejects a purely procedural basis for denying approval where the underlying registration remains operative.
FULL TEXT OF THE ORIGINAL ORDER OF ITAT PUNE
This appeal filed by the assessee is directed against the order dated 17.09.2025 of the Ld. CIT(Exemption), Pune rejecting the application for grant of approval u/s 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
2. There is a delay of 115 days in filing of the appeal before the Tribunal for which the assessee has filed a condonation application along with an affidavit explaining the reasons for such delay. It has been explained that the CA is 77 years old and has underwent operation due to critical illness. Further, he was advised complete bed rest. Therefore, there was a reasonable cause for delay in filing of the appeal before the Tribunal. After considering the contents of the condonation application filed along with the affidavit and after hearing the Ld. DR, the delay in filing of the appeal is condoned and the appeal is admitted for adjudication.
3. Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 21.03.2025 for approval of the trust under sub-clause (B) of (iv) of first proviso to sub section (5) of section 80G of the Act. With a view to verify the genuineness of the activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G of the Act, a notice was issued through ITBA portal on 02.05.2025 requesting the assessee to upload certain information / clarification. In response to the same the assessee filed various details. On verification of various details filed by the assessee the Ld. CIT(E) noticed various discrepancies for which he issued another notice to the assessee pointing out the discrepancies in response to which the assessee filed the requisite details. However, the Ld. CIT(E) was not satisfied with the submissions made by the assessee and rejected the application for grant of approval u/s 80G by observing as under:
4. Aggrieved with such rejection of approval u/s 80G by Ld. CIT(E), the assessee is in appeal before the Tribunal.
5. We have heard the rival arguments made by both the sides, perused the order of the Ld. CIT(E) and the paper book filed on behalf of the assessee. We find the Ld. CIT(E) in the instant case rejected the application for grant of approval u/s 80G on the ground that the assessee failed to submit the copy of registration u/s 12A / 12AA prior to 01.04.2021 but has only submitted a copy of registration obtained on 05.04.2022 u/s 12A(1)(ac)(i) of the Act. When the Ld. CIT(E) has already verified the registration obtained on 05.04.2022 u/s 12A(1)(ac)(i) the same in our opinion could not have been issued without verifying the earlier record granting registration u/s 12A /12AA. We, therefore, find merit in the argument of the Ld. Counsel for the assessee that the copy of registration u/s 12A / 12AA prior to 01.04.2021 was deemed to be available on record of the Ld. CIT(E) and without that he could not have granted registration on 05.04.2022 u/s 12A(1)(ac)(i) of the Act. We, therefore, are of the considered opinion that the Ld. CIT(E) without due application of mind has summarily rejected the application for grant of approval u/s 80G of the Act on the ground that the assessee failed to submit the copy of registration u/s 12A / 12AA which was already available on record. In view of the above discussion and since the registration has already been granted u/s 12A / 12AA to the assessee and further the registration obtained u/s 12A(1)(ac)(i) has not been withdrawn, therefore, the finding of the Ld. CIT(E) that the assessee obtained the same by misrepresentation of facts and therefore invalid is not acceptable.
6. In view of the above discussion and considering the fact that the assessee has obtained the registration u/s 12A(1)(ac)(i) which has not been withdrawn or rejected, we, direct the Ld. CIT(E) to grant the approval u/s 80G of the Act. The grounds raised by the assessee are accordingly allowed.
7. In the result, the appeal filed by the assessee is allowed.
Order pronounced in the open Court on 13th July, 2026.
