Case Law Details
Pimpri Chinchwad Mahanagar Palika Divyang Bhavan Foundation Vs CIT (ITAT Pune)
Delay in Filing Form 10AB Can Be Condoned — Rejection of Section 12A Registration & 80G Approval Set Aside and Remanded (Post 01.10.2024 Proviso)
The Pune Bench of the ITAT allowed the appeals of the assessee-foundation for statistical purposes and set aside the orders of the CIT (Exemption), Pune rejecting registration under Section 12A(1)(ac)(iii) and consequential approval under Section 80G(5).
The CIT (Exemption) had rejected the applications on the ground that Form 10AB was filed belatedly (on 10.12.2024 instead of the due date 06.08.2024) and also cancelled the provisional registration, noting that the assessee failed to respond to notices.
The Tribunal took note of the proviso inserted w.e.f. 01.10.2024 to Section 12A(1)(ac), which empowers the Commissioner to condone delay in filing the registration application if reasonable cause is shown, and treats such application as filed within time. Holding that this statutory change was not examined by the CIT (Exemption), the ITAT found merit in granting the assessee an opportunity.
Accordingly, the ITAT remanded the matter to the CIT (Exemption) for fresh adjudication of the registration application after considering the explanation for delay and after providing reasonable opportunity of hearing. Since approval under Section 80G is consequential to registration under Section 12A, that issue was also remanded for de novo consideration.
FULL TEXT OF THE ORDER OF ITAT PUNE
Both the above captioned appeals filed by the assessee are directed against the separate orders dated 03.06.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act filed on 10.12.2024 and denying the application for approval in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act filed on 13.12.2024.
2. There is delay in filing of both above captioned appeals. We are satisfied with the reasons mentioned in the application for condonation of delay duly supported by an affidavit that the applicant was prevented by sufficient cause for not filing the appeals within the prescribed time limit. After hearing Ld. DR, we condone the delay and proceed to adjudicate the appeals.
ITA No.2582/PUN/2025 :
3. Facts of the case, in brief, are, that the assessee filed its application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of IT Act on 10.12.2024. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, notices were issued by Ld. CIT, Exemption, Pune through ITBA portal on 22-01-2025 & 23-04-2025 respectively. It was specifically pointed out by Ld. CIT, Exemption, Pune that the application for registration was required to be filed by 06-08-2024 however the same was filed belatedly i.e. on 10-12-2024 & therefore the same deserves to be rejected. In compliance to this query, the assessee could not furnish any reply & therefore the application for registration was rejected by Ld. CIT, Exemption, Pune and the provisional registration under Item (A) of sub-clause (vi) of clause (ac) of sub-section (1) of section 12A of the IT Act granted to the assessee on 07.03.2024 was also cancelled.
4. It is this order against which the assessee is in appeal before this Tribunal.
5. Ld. AR appearing from the side of the assessee submitted before us that the order passed by Ld. CIT, Exemption, Pune is not justified. Ld. AR submitted before the Bench that the delay was unintentional and bonafied due to which the application could not be furnished upto 06.08.2024. Ld. AR further submitted that w.e.f. 01.10.2024 a proviso is inserted in section 12A(1)(ac) which permits the Commissioner to condone the delay if he considers that there is a reasonable cause for delay in filing the application for registration and then such application shall be deemed to have been filed within time. Accordingly, it was requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune and further requested to grant registration after condoning the delay.
6. Ld. DR appearing from the side of the Revenue relied on the order of Ld. CIT, Exemption, Pune and requested to confirm the same.
7. We have heard Ld. Counsels from both the sides and perused the material available on record. We find that admittedly the assessee could not furnish any reply before Ld. CIT, Exemption, Pune. However, we find force in the arguments of Ld. Counsel of the assessee that a proviso has been inserted in section 12A(1)(ac) w.e.f. 01.10.2024 which permits the Commissioner to condone the delay if he considers that there is a reasonable cause for delay in filing the application for registration and then such application shall be deemed to have been filed within time.
8. Considering the totality of the facts of the case, & also in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him to decide the application for registration afresh and as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to explain the reason of delay in filing of application for registration without taking any adjournment under any pretext, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes.
9. In the result, the appeal filed by the assessee in ITA 2582/PUN/2025 is allowed for statistical purposes.
ITA No.2583/PUN/2025 :
10. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(iii) to the file of Ld. CIT, Exemption, Pune for de novo adjudication, therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s 80G(5) as well to the file of Ld. CIT, Exemption, Pune being consequential, for de novo
11. In the result, the appeal filed by the assessee in ITA No.2583/PUN/2025 is allowed for statistical purposes.
12. To sum up, both the above captioned appeals filed by the assessee are allowed for statistical purposes.
Order pronounced on this 05th day of January, 2026.
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