BR NATH PAI SHIKSHAN SANSTHA,KUDAL V. ITO EXMEPTION, KOLHAPUR

ITA 2396/PUN/2025

AI Insights

The case involves BR Nath Pai Shikshan Sanstha, an educational institution, which appealed against the decision of the CIT, Exemption, Pune, rejecting their application for approval under section 80G(5) of the Income Tax Act. The rejection was primarily based on the technical ground of delay, as the application was filed after the prescribed deadline. The Tribunal heard arguments from both sides and considered the circumstances of the delay, which the assessee claimed was inadvertent due to a misunderstanding of the validity period of their previous approval under section 80G(5). The Tribunal decided to set aside the CIT's order and remand the case for a fresh decision on the merits.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840027 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 15-10-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: P. P. JAYARAMAN
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2396/PUN/2025 BR Nath Pai Shikshan Sanstha, Plot No.4, MIDC, Kudal, Sindhudurg- 416520. PAN : AABTB1496N Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 30.08.2025 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 IT Act on 10.03.2025. With a view to verify the genuineness of activities of Assessee by : Shri P. P. Jayaraman Revenue by : Shri Amol Khairnar Date of hearing : 02.02.2026 Date of pronouncement : 25.02.2026 Printed from counselvise.com ITA No.2396/PUN/2025 2 the assessee and fulfillment of conditions laid down in clauses (i) to (v) of section 80G(5) of the IT Act, notices were issued through ITBA portal requesting the assessee to upload certain information/clarification. In reply to the said notices, the desired information was furnished by the assessee. Not being satisfied with the explanation furnished by the assessee, Ld. CIT, Exemption, Pune was of the opinion that the application for approval u/s 80G(5) of the IT Act is not filed within the time allowed under clause (iii) of first proviso to section 80G(5) of the IT Act & in view of the above fact the application filed by the assessee is rejected by observing as under :- “7. The assessee's contention is duly considered. It is, however not acceptable considering the following : As it seen from the submissions that the date of expiry of provisional approval under section 80G(5)(iv) of the Act in the assessee's 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. 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 by the assessee is on 10/03/2025 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 has failed to file the present application within the time limit allowed under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961. Further, it is also seen Printed from counselvise.com ITA No.2396/PUN/2025 3 from the submissions that the activities were already commenced i.e. from F Y 2003-2004. 7.1 From the provisions of clause (iii) of first proviso to section 80G(5) of the Act, it is evident that the time limits prescribed therein are mandatory and the Commissioner of Income Tax has no power to condone the delay in filing application in Form No.10AB. It is evident that the time limit prescribed under clause (iii) of first proviso to section 80G(5) of the Act for filing Form No.10A and Form No.10AB, as the case may be, is mandatory and therefore, after considering the hardship to the assessee the CBDT extended the said time limit on multiple occasions, for filing Form No.10A and Form No.10AB, under section 119 of the Act, vide above referred Circulars. As per above referred CBDT Circular No.7/2024, the date for filing Form No.10AB for approval / approval under section 10(23C) or 12A or 80G(5) was extended upto 30th June 2024. 7.2 Further, as per the copy of order of provisional approval under section 80G(5) read with clause (iv) of first proviso to section 80G(5) of the Income Tax Act, 1961, the date of provisional approval is 23/06/2022. As per the provisions of clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961, 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 within 6 months from the date of commencement of activities. Since, the activities were already commenced as on the date of provisional approval, the trust was required to file the present application within 6 months from the date of provisional approval i.e. on or before 22/12/2022. The extended time limit as per CBDT Circular No. 7 of 2024 was 30/06/2024. However, the present application filed by the trust is on 10/03/2025 i.e. after the expiry of period under clause (iii) of first proviso to section 80G(5) of the Act. Thus, it is seen that the assessee has failed to file 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 10/03/2025 filed by the assessee in Form 10AB is hereby rejected without going into the merits of the case.“ Printed from counselvise.com ITA No.2396/PUN/2025 4 3. It is the above order against which the assessee is in appeal before this Tribunal. 4. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper book and copy of case laws furnished by the assessee. In this regard, we find that Ld. CIT, Exemption, Pune has dismissed the application for regular approval u/s 80G(5) of the IT Act on the technical ground of delay without going into merits of the case. In this regard, it was the contention of Ld. Counsel of the assessee that the assessee is an old educational institution already registered u/s 12AB of the IT Act since long. It was also contended that registration u/s 12AB of the IT Act was valid upto assessment year 2026-27 and therefore the assessee was under impression that the earlier approval u/s 80G(5) of the IT Act was also valid upto assessment year 2026-27 and accordingly the assessee applied for approval u/s 80G(5) of the IT Act on 31-03-2025. However, the earlier approval u/s 80G(5) of the IT Act was valid only upto Asstt Year 2025-26 & therefore the instant application for approval u/s 80G(5) of the IT Act ought to have been filed on or before 30-09-2024. Under the above circumstances, it was the contention Printed from counselvise.com ITA No.2396/PUN/2025 5 of Ld. counsel of the assessee that it was an inadvertent error which may kindly be pardoned & Ld. CIT, Exemption, Pune may kindly be directed to approve the application filed u/s 80G(5) of the IT Act by condoning the delay, since no adverse finding was recorded by Ld. CIT, Exemption, Pune on merits of the case. 5. Considering the totality of the facts of the case & in the interest of justice, we find some force in the above arguments of Ld. Counsel of the assessee & therefore we are of considered opinion that the assessee institution has successfully explained the reason of delay before us, which is bona-fide. Accordingly, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune & restore the issue back to his file with a direction to condone the delay & decide the application for approval u/s 80G(5) of the IT Act afresh & as per fact & law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and to produce requisite documents/information in support of the application for regular approval u/s 80G(5) of the IT Act without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption, Pune shall be at Printed from counselvise.com ITA No.2396/PUN/2025 6 liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 25th day of February, 2026. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 25th February, 2026. Sujeet/DOC आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT, Exemption, Pune. 4. The Pr. CIT/CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "