2026 (9) TMI 501

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....1961 has been rejected. From a perusal of the impugned order, it is seen that the assessee had filed its application on 29.09.2025 seeking approval under section 80G(5). During the course of proceedings, a deficiency letter dated 31.01.2026 was issued to the assessee, in response to which a reply was duly furnished. The Ld. CIT(E), however, rejected the application essentially on the solitary ground that the assessee did not possess a valid registration under section 12A/12AB for the period for which approval under section 80G had been sought. According to the Ld. CIT(E), registration under section 12A/12AB or notification under section 10(23C) was a precondition for grant of approval under section 80G and, since according to him the assess....

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.... for our consideration is whether approval under section 80G can be denied solely for want of registration under section 12AB, notwithstanding the assessee's case that its income is exempt under section 10(23C)(iiiad). In this regard, the language employed in section 80G(5)(i) is material. The provision, insofar as relevant, contemplates that where an institution or fund derives any income, such income should not be liable to inclusion in its total income under the provisions of sections 11 and 12 or clause (23AA) or clause (23C) of section 10. Thus, the statutory provision itself recognises alternative routes through which the prescribed condition can stand fulfilled. Exemption under sections 11 and 12 pursuant to registration under sectio....

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....hether the assessee was covered by section 10(23C)(iiiad) and, consequently, whether the requirement contained in section 80G(5)(i) stood satisfied through that statutory route. The application, therefore, could not have been rejected solely for want of registration under section 12AB without examining this material aspect. 6. Thus, once the assessee is an educational institution and its income is covered by the exemption contemplated under section 10(23C)(iiiad), absence of registration under section 12AB cannot constitute an independent impediment for grant of approval under section 80G. The statutory provision itself recognises non-inclusion of income under section 10(23C) as satisfying the relevant condition under section 80G(5)(i). ....