PSR Sustainability Foundation Vs CIT(Exemption) (ITAT Pune)
Wrong clause in Form 10AB not fatal – ITAT directs CIT(E) to allow rectification & reconsider 12AB registration & 80G approval-Technical error in Form 10AB no ground to deny registration – Tribunal upholds liberal interpretation in charitable cases
Assessee, a Section 8 company engaged in environmental & socio-economic development activities, filed two appeals against CIT(Exemption)’s orders dated 09.12.2024 & 07.03.2025 rejecting its applications for regular registration u/s 12AB(1)(ac)(iii) & approval u/s 80G(5).
Background
Assessee had obtained provisional registration & later filed Form 10AB on 29.06.2024 for regular registration u/s 12AB(1)(ac)(iii). CIT(E) issued notices on 06.08.2024 & 29.11.2024 seeking details of activities, beneficiaries, & donor communications. The Foundation, however, did not comply with the second notice issued barely 3–4 working days before the hearing date (05.12.2024). Consequently, the CIT(E) rejected both 12AB & 80G applications, observing that the Assessee failed to establish genuineness of activities & did not qualify under any alternative exemption provisions such as 10(23C).
Delay condoned
The appeals were filed belatedly by 164 & 72 days. The Trust explained that it initially relied on professional advice to reapply instead of appealing & later, upon obtaining a second opinion, decided to approach ITAT. Considering these bona fide circumstances, the Tribunal condoned the delay, relying on Collector, Land Acquisition v. Mst. Katiji (167 ITR 471, SC) & Inder Singh v. State of MP (2025 INSC 382).
