Mercy Home Vs ITO (ITAT Guwahati Bench)
One Valid 80G Approval Makes the Second Rejection Meaningless: Guwahati ITAT Quashes CIT(E)’s Later Order
Summary: The assessee, Mercy Home, was a charitable institution seeking approval u/s 80G. It was initially granted provisional approval u/s 80G(5)(iv) through an order dated 11 March 2023, valid from 11 March 2023 up to AY 2025-26.
Subsequently, the assessee obtained another certificate dated 15 November 2024, granting approval for AYs 2023-24 to 2027-28. This later certificate continued to remain valid & had neither been withdrawn nor cancelled by the Department.
Despite the subsisting certificate, the assessee filed Form 10AB electronically on 2 September 2025, seeking regular approval u/s 80G(5)(ii). The CIT(E), Kolkata, examined the application with reference to the earlier provisional approval dated 11 March 2023.
The CIT(E) observed that the assessee had commenced its charitable activities much earlier. It was therefore required to file Form 10AB within the extended due date of 30 June 2024, as permitted by CBDT Circular No. 7/2024, or at least six months before expiry of the provisional approval, as applicable.
Since Form 10AB was filed only on 2 September 2025, the CIT(E) treated it as belated & rejected the application through an order dated 17 March 2026. The assessee challenged the rejection before the Tribunal.
