Om Sai Ram Charitable Trust Vs CIT (Exemption) (ITAT Pune)
The assessee-trust’s application for final approval u/s 80G(5) was rejected by CIT (Exemption), Pune, on the ground that it was filed after the prescribed date (19.11.2024 instead of 30.09.2024). The Trust explained that it had initially filed the application on 28.09.2024, well within time, but had withdrawn and refiled it the same day due to a typographical error in the section code. The CIT(E), however, rejected the refiled application without considering this fact and without examining the case on merits.
The ITAT held that since the original filing was within the time limit, and the second filing was a technical correction, the delay ought to have been condoned. Dismissing an application merely for procedural lapse defeated the purpose of the law. The Tribunal thus set aside the rejection and directed the CIT(E) to condone the delay and decide the application afresh on merits after giving due opportunity to the Trust.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal filed by the assessee is directed against the order dated 23.04.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for approval u/s 80G(5) of the IT Act.
2. Facts of the case, in brief, are, that the assessee filed its application for registration in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the Act on 19.11.2024. With a view to verify the genuineness of activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G(5) of the Act, notices were issued through ITBA portal requesting the assessee to upload certain information/clarification. The assessee in response to above notices furnished desired information as mentioned in the notices. After verifying these details, Ld. CIT, Exemption, Pune dismissed the application for approval u/s 80G(5) of the Act by observing as under :-
“7.2 Without prejudice to the above, it is seen that the date of expiry of provisional approval under section 80G(5)(iv) of the Act in the instant case is 31/03/2025. As per the provisions of clause (iii) of first proviso to section 80G(5) of the Act, where a trust or institution has been provisionally approved under section 80G(5)(iv) of the Act, the application for regular approval under section 80G(5)(iv) is required to be filed, at least six months prior to expiry of period of the provisional approval or within six months from the date of commencement of activities, whichever is earlier. Since, the period of provisional approval was due to expire on 31/03/2025, the present application was required to be filed before 30/09/2024. However, the present application filed is on 19/11/2024 i.e. after the expiry of period allowed under clause (iii) of first proviso to section 80G(5) of the Act. Thus, it is seen that the assessee did not filed the present application within the time limit allowed under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961.
8. In view of the above, the present application filed in Form No.10AB under clause (iii) of first proviso to section 80G(5) of the Act is liable to be rejected without going into the merits since the assessee has not filed the present application within the time limit allowed under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961.
9. In view of the above, the application dated 19/11/2024 filed by the assessee in Form 10AB is hereby rejected without going into the merits of the case.”
3. It is this order against which the assessee is in appeal before this Tribunal.
