CUSTOMISED ENERGY SOLUTIONS FOUNDATION,PUNE V. COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE

ITA 1846/PUN/2025

AI Insights

The case involves the Customised Energy Solutions Foundation appealing against the decision of the CIT, Exemption, Pune, which rejected their application for approval under section 80G(5) of the Income Tax Act. The rejection was primarily due to the application being filed beyond the prescribed time limit. However, the Tribunal found that the assessee had filed the application shortly after receiving the earlier approval, which was not within their knowledge until a later date. The Tribunal considered the circumstances and directed a re-evaluation of the application on its merits.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 841207 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2024-2025
• Appeal Filed On: 02-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA VIJAY
• Assessee Lawyers: SHARAD VAZE
• 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.1846/PUN/2025 Customised Energy Solutions Foundation, 501, G. O. Square, Aundh Hinjewadi Link Road, Wakad, Pune- 411057. PAN : AAJCC3475H Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 10.06.2025 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 (ii) of first proviso to sub-section (5) of section 80G of the IT Act on 23.11.2024. Since the earlier regular approval was granted upto 31.03.2025, Ld. CIT, Exemption, Pune was of the view that the present application was required to be filed on or before Assessee by : Shri Sharad Vaze Revenue by : Shri Chandra Vijay Date of hearing : 11.02.2026 Date of pronouncement : 24.02.2026 Printed from counselvise.com ITA No.1846/PUN/2025 2 30.09.2024 i.e. six months prior to expiry of regular approval. After considering the reply of the assessee in this regard, Ld. CIT, Exemption, Pune dismissed the application filed by the assessee by observing as under :- “6. The assessee has furnished its compliance on 05/03/2025. The contention of the assessee on the issue of delay is reproduced as under: \"The Foundation was granted regular registration u/s 80G(5)(iii) for the period 09.07.2021 to 31.03.2025 (i.e. up to AY: 2025-26), vide registration/approval no. AAJCC3475H24PN01). We would like to mention here that the said approval was granted to us by your office only on 18.11.2024, copy attached at annexure 2 for ready reference. On receiving the approval, we have immediately made application for renewal u/s 80G(5)(ii) on 23.11.2024 for granting renewal of 80G registration for a further 5 years from 01.04.2025 to 31.03.2030. Considering the fact the approval of registration was granted by your office only on 18.11.2024, we could not make renewal application before 30 Sept 2024 as per the provision of u/s 80G(5)(ii), where as we made application within 5 days of receipt of approval on 23.11.2024, for renewal of registration u/s 80G(5)(ii). Considering the above facts, we request you to kindly approve the application made in Form 10AB u/s 80G(5)(ii) for the period 01.04.2025 to 31.03.2030 (i.e. AY 2026-27 to AY 2030-31)\" 6.1 The reply of the assessee is considered. However, the same is not found to be acceptable. As it seen from the submissions that the previous application was filed by the assessee on 04/06/2024 under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 which was disposed on 18/11/2024 granting approval for the period from 2021-22 to 2025-26 within speculated time limits of the Act. It is also noted that the date of provisional approval under section 80G(iv) of the Act was 27/05/2021 and the date of expiry of provisional approval under section 80G(5)(iv) of the Act in the assessee's case was 31/03/2023. 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) was 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 31/03/2023, the application was required to be filed before Printed from counselvise.com ITA No.1846/PUN/2025 3 30/09/2022. However, the application filed by the assessee was on 04/06/2024 i.e. after the expiry of period allowed under clause (iii) of first proviso to section 80G(5) of the Act. Hence, it is clearly seen that the assessee has filed its application after the long period i.e. almost two year later. 7. As per the provisions of clause (ii) of first proviso to section 80G(5) of the Act, where the institution or fund is approved under section 80G(5)(vi) of the Act, and the period of such approval is due to expire, the application for renewal of regular approval under section 80G(5)(vi) is required to be filed, at least six months prior to expiry of the said period. As per the regular approval under section 80G(5)(vi) of the Act the expiry of the said approval in this case is 31/03/2025. Therefore, the assessee has ought to be filed its application before the 30/09/2024 whereas the assessee has filed its application on 23/11/2024 i.e. beyond the time limit allowed under clause (ii) of first proviso to section 80G(5) of the Income Tax Act, 1961. 7.1 From the provisions of clause (ii) 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 (ii) of first proviso to section 80G(5) of the Act for filing Form No. Form No.10AB, 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 under section 10(23C) or 12A or 80G(5) was extended upto 30th June 2024. 8. Considering the above facts discussed in the show notice and discrepancies noticed, the undersigned is not satisfied about 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. 9. Accordingly, the application dated 23/11/2024 filed by the assessee in Form 10AB is hereby rejected.” 3. It is this 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 furnished Printed from counselvise.com ITA No.1846/PUN/2025 4 by the assessee. In this regard, we find that admittedly the earlier regular approval upto 31.03.2025 u/s 80G was granted vide order dated 18.11.2024. Therefore, the assessee was not in a position to apply for further regular approval on or before 30-09-2024 for the subsequent period since the regular approval for the period 09.07.2021 to 31.03.2025 itself came to the knowledge of the assessee on 18.11.2024. It is also evident that immediately after receiving the order of regular approval for earlier period (09.07.2021 to 31.03.2025) the assessee has applied for subsequent period (01.04.2025 to 31.03.2030) regular approval on 23.11.2024. In the instant case in hand, the assessee has already filed its application within five days from the date of receipt of earlier period regular approval which cannot be said to be filed belatedly. 5. Considering the totality of the facts of the case & in the interest of justice, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune & remand the matter back to him with a direction to treat the application as filed in time & decide the same afresh on merits of the case and 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 produce requisite documents/information in support of the application for approval Printed from counselvise.com ITA No.1846/PUN/2025 5 without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption, Pune shall be at 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 24th day of February, 2026. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 24th February, 2026. Sujeet 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 "