TaxTMI 
TaxTMI 
2026 (3) TMI 605
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....visional approval under section 80G(5) of the Act in Form No. 10AC vide order dated 31.12.2022, which was valid up to A.Y. 2025-26. In terms of the amended provisions of section 80G(5), the assessee was required to file an application in Form No. 10AB for conversion of the provisional approval into regular approval within the time prescribed under clause (iii) of the first proviso to section 80G(5) of the Act. 3. The assessee filed its application in Form No. 10AB on 28.03.2025, seeking regular approval under section 80G(5). During the course of proceedings, the learned CIT(Exemptions) observed that the application was not accompanied by all the documents prescribed under Rule 11AA(2) of the Income-tax Rules, 1962, and accordingly issued notices dated 14.07.2025, 29.08.2025, 12.09.2025 and 17.09.2025, affording opportunities to the assessee to comply and to explain why the application should not be rejected. In response, the assessee admitted that there was a delay in filing the application in Form No. 10AB and submitted that the delay occurred due to a bona fide misunderstanding regarding the validity period of the provisional approval under section 80G(5), which, according to ....
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....is registered u/s. 12A having validity till AY 2026-27 and the same is misunderstood by the appellant that provisional approval u/s. 80G(5) is also valid till AY 2026-27. The appellant prays for the condonation of delay under the principle of 'sufficient cause', as the oversight was technical and no male fide intent to circumvent the law existed. 3. That the learned CIT(Exemption) failed to consider the principle of substantive justice over technicalities, which is paramount in the case of charitable organizations. The Tribunal is requested to adopt a liberal and pragmatic approach and condone the technical delay, thereby allowing the application to be decided on its merits and not on a procedural lapse. 4. That the learned CIT(Exemption) failed to consider that the appellant trust is otherwise eligible for the grant of final 80G approval, as it has substantially complied with all the statutory and regulatory requirements and its activities are genuinely charitable, as evidenced by its accounts and activities during the provisional approval period. The Tribunal should direct the CIT(Exemption) to examine the application on merits rather than reje....
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...., the same authority, on the very same set of facts, granted regular registration under section 12AB(1)(b) to the assessee for a period of ten years from A.Y. 2027-28 to A.Y. 2036-37. It was submitted that this fact clearly establishes that the charitable character, objects and activities of the assessee stood accepted by the Department, and the rejection under section 80G(5) was solely on a procedural ground. 9. The learned AR further submitted that a detailed application for condonation of delay dated 14.01.2026 has been filed before the Bench, wherein the assessee has explained the reasons constituting "reasonable cause". In support thereof, the assessee has filed a sworn affidavit of the trustee, Shri Bhupesh S. Shah, and a separate affidavit of the Chartered Accountant, Shri P. P. Jayaraman, both duly notarised. 10. It was submitted that the trustee's affidavit categorically affirms the issuance of two separate Form No. 10AC orders, the reliance on professional advice, the bona fide misunderstanding regarding timelines, and the immediate corrective action taken upon discovery of the error. The affidavit also affirms that non- condonation of delay would cause irreparable ....
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.... proviso to section 80G(5). The learned Departmental Representative submitted that the statute does not vest any power in the CIT(E) to condone delay in filing the application beyond the prescribed time limit. It was contended that, in the absence of an express statutory provision conferring such power, the learned CIT(Exemptions) was correct in treating the application as non-maintainable and rejecting the same. It was further submitted that exemption provisions under the Act are to be construed strictly and any deviation from the statutory conditions would render the claim untenable. The learned Departmental Representative supported the reasoning adopted by the learned CIT(Exemptions) and submitted that the impugned order does not suffer from any infirmity warranting interference. 16. We have carefully considered the rival submissions and perused the material available on record, including the impugned order passed by the learned Commissioner of Income Tax (Exemptions), the written submissions filed before us, the application seeking condonation of delay, and the sworn affidavits filed by the trustee of the assessee trust as well as by the Chartered Accountant. 17. It is an....
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....ions is not merely an assertion of the assessee, but stands acknowledged at the administrative level as well. The CBDT, in Circular No. 7/2024, has recognised that charitable institutions have faced genuine difficulties and procedural lapses while navigating the transition to the new regime, owing to multiple statutory provisions, forms, timelines and portal-related compliances. While the said Circular does not dilute statutory requirements, it reflects the administrative understanding that rigid adherence to procedural timelines, in isolation, may result in unintended and disproportionate consequences for genuine charitable institutions. 21. The controversy raised before us is also no longer res integra. The coordinate Bench of the Tribunal in Anybody Can Help Foundation vs. ITO (Exemptions) (ITA No. 7245/Mum/2025, order dated 06.01.2026) has examined the scheme of section 80G(5) in the context of the new registration regime and has laid down clear principles governing rejection of applications on technical grounds of limitation. The Tribunal has held that where an application in Form No. 10AB is rejected solely on the ground of delay, without recording any adverse finding rega....