Bombay Patel Welfare Society Vs CIT (Exemptions) (ITAT Mumbai)
Summary: The assessee, a charitable society registered under the Bombay Public Trusts Act, 1950, appealed against the order dated 31.12.2025 passed by the Commissioner of Income Tax (Exemptions), Mumbai, rejecting its application in Form No. 10AB under clause (iii) of the first proviso to section 80G(5) of the Income-tax Act, 1961, seeking regular approval under section 80G.
The assessee had received provisional approval under section 80G(5) in Form No. 10AC on 08.03.2023, valid up to assessment year 2025-26. It subsequently filed Form No. 10AB on 10.06.2025. The CIT(E) considered the application delayed by 21 months and also noted that the trust deed or memorandum of association did not contain an express irrevocability or dissolution clause. The answer “Yes” furnished by the assessee in point No. 6 of Form No. 10AB was consequently treated as false or incorrect information constituting a specified violation under Explanation (g) to section 12AB(4).
The assessee contended that the delay was procedural, that it already held provisional approval, and that there was no adverse finding regarding its charitable objects or genuineness of activities. It also submitted that the alleged deficiency concerning irrevocability or dissolution was curable and that an opportunity should have been granted to rectify it. The Departmental Representative relied on the impugned order but fairly stated that there was no objection to restoring the matter for fresh adjudication after giving the assessee a reasonable opportunity.
