Environment Sewa Foundation Vs (Exemption) CIT (ITAT Mumbai)
Delay in Filing Form 10AB for Section 12AB Renewal Condoned—Matter Restored to CIT(E)
The Mumbai ITAT (E Bench) allowed the appeal of Environment Sewa Foundation and set aside the rejection of renewal of registration under section 12AB on the ground of delay in filing Form 10AB.
The Tribunal held that:
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Although section 12A(1)(ac)(ii) mandates filing of renewal application six months prior to expiry, the assessee could not have applied earlier since the final registration certificate under section 12AB itself was issued only on 28.12.2024.
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Immediately upon receipt of the registration order, the assessee filed Form 10AB within about three months (13.03.2025), showing prompt and bona fide conduct.
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The delay was beyond the control of the assessee and constituted reasonable cause.
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A liberal approach is required in procedural matters relating to charitable registrations, especially when no mala fide or prejudice to Revenue is shown.
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Reliance was placed on the coordinate bench decision in Amba Santhi Foundation v. CIT(E), where similar delay in filing Form 10AB was directed to be condoned.
Accordingly, the ITAT restored the matter to the CIT(E) with a direction to condone the delay, treat the application as filed within time, and decide the renewal application on merits after granting due opportunity. The appeal was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT MUMBAI
