DECCAN GYMKHANA,PUNE V. CIT(EXEMPTION), PUNE

ITA 444/PUN/2025

AI Insights

The case involves Deccan Gymkhana, which filed two appeals against the orders of the CIT(Exemption), Pune, rejecting their applications for grant of approval under section 80G of the Income Tax Act, 1961. The primary reason for rejection was non-compliance with the notices issued by the CIT(Exemption) requesting additional information to verify the genuineness of the assessee's activities. The Tribunal noted that despite sufficient opportunities given, the assessee did not respond, leading to the rejection of their application. However, considering the circumstances presented by the assessee, the Tribunal decided to restore the matter to the CIT(Exemption) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785984 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 18-02-2025
• Other Referred Cases: Bishnupur Public Education Institute vs. CIT, All Angels Educational Society vs. CIT, Aurora Educational Society vs. CIT, Roland Educational & Charitable Trust vs. CIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: S SHARAD A VAZE; AMOD S VAZE
• Keywords: Set aside; Opportunity of being heard; Retrospective amendment; Reasonable cause; Period of limitation; Charitable institution; Time period of passing order
• Section: 12A; 10; 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND Ms. ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.444 & 1554/PUN/2025 Deccan Gymkhana 759/2, Deccan Gymkhana Pune – 411004 Vs. CIT(Exemption), Pune PAN: AAATD1452B (Appellant) (Respondent) Assessee by : S/Shri Sharad A Vaze & Amod S Vaze Department by : Shri Amol Khairnar, CIT-DR Date of hearing : 26-08-2025 Date of pronouncement : 27-10-2025 O R D E R PER ASTHA CHANDRA, JM: The above two appeals filed by the assessee are directed against the separate orders dated 27.12.2024 and 27.01.2024 of the Ld. CIT(Exemption), Pune respectively rejecting the application for grant of approval u/s 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). ITA No.1554/PUN/2025 2. There is a delay of 420 days in filing of the appeal before the Tribunal for which the assessee has filed the condonation application along with an affidavit explaining the reasons for such delay. After considering the contents of the Printed from counselvise.com 2 ITA Nos.444 & 1554/PUN/2025 condonation application filed along with the affidavit and after hearing the Ld. DR, the delay in filing of the appeal is condoned and the appeal is admitted for adjudication. 3. Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 30.09.2023 for approval of the trust under clause (iii) of first proviso to sub section (5) of section 80G of the Act. With a view to verify the genuineness of the activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G of the Act, a notice was issued through ITBA portal on 23.11.2023 requesting the assessee to upload certain information / clarification. The assessee was requested to submit the compliance by 08.12.2023. Since the assessee did not furnish compliance to the said notice, another notice was given on 21.12.2023 requesting it to show cause as to why the application should not be rejected and why the approval granted u/s 80G should not be cancelled. In absence of any reply from the side of the assessee by the due date i.e. 27.12.2023, the Ld. CIT(E) rejected the application filed by the assessee for grant of approval u/s 80G of the Act and also cancelled the provisional approval granted earlier by observing as under: “3. The assessee was requested to submit compliance by 08/12/2023. The assessee was specifically informed that in the event of failure to comply by the due date, the matter will be decided based on material available on record. The notice was duly served on the assessee through e-portal and email. Since the assessee did not comply, another notice was issued on 21/12/2023 requesting it to submit compliance by 27/12/2023. The assessee was requested to show cause as to why its application should not be rejected and the approval under section 80G(5)(vi) of the Income Tax Act, 1961 should not be cancelled. The assessee was specifically Printed from counselvise.com 3 ITA Nos.444 & 1554/PUN/2025 informed that in the event of failure to comply by the due date, the application shall be liable to be rejected and the registration / approval shall also be liable to be cancelled. The assessee was also given opportunity of being heard. The said notice was duly served on the assessee through e-portal and email. 3.1 However, the assessee neither furnished any compliance to the said notice nor availed the opportunity of being heard. 4. The assessee has failed to furnish the details called for under the provisions of sub-clause (a) of clause (ii) of second proviso to section 80G(5) of the Income Tax Act, 1961 to verify the genuineness of activities of the institution/fund and fulfillment of conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act. 4.1 The information called for is basic information required to ascertain the overall nature of activities of the assessee and are directly relevant to the present proceedings. However, the assessee has failed to submit such details information despite giving sufficient opportunity as discussed above. In absence of the compliance to the above requirement, it is not possible to arrive at any conclusion about the genuineness of activities of the assessee and fulfillment of conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act. 4.2 It is clear that the assessee was given sufficient opportunity to comply, but it has failed to comply. It seems that the assessee is not having any supporting documents / evidence to submit. The assessee has failed to comply with the provisions of sub-clause (a) of clause (ii) of second proviso to section 80G(5) of the Income Tax Act, 1961 and hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and fulfillment of conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act and has left no alternative but to reject the application. 5. Without prejudice to the above, 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)(vi) of the Act, the application for regular approval under section 80G(5)(vi) 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, whichever is earlier. As per the copy of form No.10AC, the date of provisional approval under section 80G(5)(vi) in this case is 30/03/2022. 5.1 Considering the above provisions, the assessee was specifically requested vide the initial notice itself to inform the date of expiry of provisional approval as well as the date of commencement of activities. The assessee has not informed the date of commencement of activities. However, it is seen that the date of incorporation of the trust/institution as per registration certified issued by Charity Commissioner is 14/01/1974 and it is also seen from Printed from counselvise.com 4 ITA Nos.444 & 1554/PUN/2025 the financial statements that the assessee has shown expenditure on objects right from the F.Y. 2016-17. Therefore, it is seen that the activities of the assessee were commenced at least from F.Y. 2016-17 i.e. before obtaining provisional approval. However, if the actual date of commencement of activity in this case is considered for computation of limitation period for filing application under clause (iii) of first proviso to section 80G(5) of the Act, the assessee would never be eligible to file any such application. 5.2 For the sake of argument, take a hypothetical case of an assessee whose activities were commenced on 01/05/2022 but makes an application under clause (iv) of first proviso to section 80G(5) for provisional approval under section 80G(5)(vi) of the Act on 01/12/2022 i.e. after commencement of activities and gets such provisional approval on 15/12/2022. Such assessee would be required to file an application under clause (iii) of first proviso to section 80G(5) for regular approval under section 80G(5)(vi) of the Act on or before 30/11/2022 i.e, within six months from the date of commencement of activities. In such a case the assessee would be required to file an application for regular approval before making an application for provisional approval under section 80G(5)(vi) of the Act. However, the Statute does not permit for making application directly for regular approval. The assessee has to mandatorily get provisionally approved first, for being eligible for making any application for regular approval. The only remedy for such assessee would be to file an application for provisional approval before commencement of activities and then only the assessee can observe the further timeline of clause (iii) of first proviso to section 80G(5) of the Act. In such a situation any assessee who misses the bus or an assessee who has commenced its activities before the implementation of newly inserted provisions of Law in this regard, will not get any approval under section 80G(5)(vi) of the Act. This definitely is not the purpose of bringing-in the new provisions for registration / approval of a charitable institution in the Statute. Considering the above, it is but natural that in case of an assessee who has already commenced its activities and intends to get approved under section 80G(5)(vi) of the Act, has to first get provisionally approved under section 80G(5)(vi) by making an application under clause (iv) of first proviso to section 80G(5) of the Act and then has to apply under clause (ii) of first proviso to section 80G(5) of the Act, for regular approval under section 80G(5)(vi), within 6 months from the date of provisional approval. In such a case, the date of commencement of activity would naturally be the date of provisional approval for computation of limitation period of six months for making an application under clause (iii) of first proviso to section 80G(5) of the Act. In view of the above, in the instant case, the limitation period for making application under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961 is required to be computed from the date of provisional approval. 5.3 Considering the above facts, it is seen that the assessee had commenced its activities before the date of provisional approval. Since, the activities of the assessee were already commenced before the date of provisional approval, the assessee was required to file the present application within 6 months from the date of provisional approval i.e. on or before 29/09/2022. The extended due date for Printed from counselvise.com 5 ITA Nos.444 & 1554/PUN/2025 filing of such application was 30/09/2022 as per CBDT, Circular No.8/2022, dated 31/03/2022. Whereas the present application filed by the assessee is on 30/09/2023, i.e. beyond the time limit allowed under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961. 5.4 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. The said legal position further gets fortified by the fact that the CBDT on multiple occasions had extended the time limit in filing the application in Form No.10A and/or From No. 10AB as under: (a) The CBDT vide Circular No.12 of 2021 dated 25/06/2021 in exercise of its power under section 119 of the Act, provided relaxation for various compliances, including making application under section 10(23C), 80G(5) (vi), 35(1)(ii)/(iia)/(iii) and 80G of the Act in Form No.10A/Form No.10AB, for approval / provisional approval /intimation / approval / provisional approval of Trusts / Institutions /Research Associations etc., which were required to be made on or before 30th June 2021 was allowed to be made / filed on or before 31st August 2021. (b) Thereafter, the CBDT vide Circular No.16 of 2021 dated 29/08/2021, further extended the date of filing of Form No.10A under section 10(23C), 12A, 35(1)(ii) / (iia)/(iii) or 80G, which was required to be filed on or before 30th June 2021 upto 31st March 2022 and similarly for application for approval or approval under section 10(23C), 12A or 80G of the Act in Form No.10AB, for which the last date for filing falls on or before 28th February, 2022 up to 31st March, 2022. (c) Thereafter, once again the CBDT vide Circular No.8/2022 dated 31/03/2022 on consideration of difficulties in electronic filing of Form No.10AB as stipulated in Rule 20 or 11AA or 17A of the Income Tax Rules, 1962, stipulated that \"The application for approval or approval under section 10(23C), 12A or 80G of the Act, in Form No 10AB, for which the last date for filing falls on or before 29th September, may be filed on or before 30th September, 2022. (d) Thereafter, once again the CBDT vide Circular No.6/2023 dated 24/05/2023, further extended the date of filing of Form No. 10A in case of an application under clause (1) of the first proviso to clause (23C) of section 10 or under sub-clause (1) of clause (ac) of sub-section (1) of section 12A or under clause (i) of the first proviso to sub-section (5)of section 80G of the Act, till 30/09/2023 where the due date for making such application has expired prior to such date, and 5.5 Form No.10AB, in case of an application under clause (iii) of the first proviso to clause (23C) of section 10 or under sub-clause (iii) of clause (ac) of sub-section (1) section 12A of the Act, till 30/09/2023 where the due date for making such application has expired prior to such date. Printed from counselvise.com 6 ITA Nos.444 & 1554/PUN/2025 5.6 It is evident from the above 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. 8/2022, the applicant /assessee, whose last date for filing Form No.10AB for approval /approval under section 10(230) or 12A or 80G(5) was falling on or before 29th September, 2022, was extended upto 30th September, 2022. Thereafter, there was no further extension for delay in filing Form No. 10AB was granted by the CBDT, till a new Circular dated 24/05/2023 is issued, and the same was evident from CBDT Circular No.22 of 2022 dated 01/11/2022, through which the CBDT extended the time limit for filing application in Form No.10A under various sections made therein, upto 25/11/2022, and in said Circular No.22 of 2022, no further extension of time was granted for filing Form No. 10AB. 5.7 It is also evident from the Circular No.6/2023, through which the CBDT has extended the time limit for filing of application in form No.10A under various section, upto 30/09/2023 and also extended the time limit for filing of application in form No. 10AB, only in case of application under clause (iii) of first proviso to clause (23C) of section 10 and under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act, up to 30/09/2023. Thus, no further extension of time has been granted for application under clause (iii) of first proviso to sub-section (5) of section 80G of the Act vide the said Circular dated 24/05/2023. 5.8 From the above, it is evident that the present application filed in Form No.10AB under clause (iii) of first proviso to section 80G(5) of the Act, has not been filed within the time limit prescribed therein and therefore the same is liable to be rejected, without going into the merits. Reliance is also placed on the decision of the Hon'ble Kolkata Tribunal in the case of Bishnupur Public Education Institute, reported in 139 laxmann.com 121, wherein the Hon'ble Tribunal while adjudicating the issue of similar provisions of due date under section 10(23C) of the Act, after placing reliance on various decisions of the Hon'ble Supreme Court and that of Hon'ble High Court has held as under: “5 The Hon'ble Madras High Court in the case of All Angels Educational Society (supra) while considering the issue whether the Id. CIT (Exemption) has power to condone the delay in filing application for grant of approval under section 10(23C) or not, has considered the judgments of Hon'ble Supreme Court in the case of State of U.P v. Harish Chandra AIR 1996 SC 2173 as well as Union of India v. Kirloskar Pneumatic Co. Ltd. 1996 taxmann.com 575 (SC) and held that where there is no provision to empower the statutory authority to condone the delay, than the authority cannot condoned. The finding of the Hon'ble Court in Paragraphs no. 15 & 16 worth to note, which read as under:- Printed from counselvise.com 7 ITA Nos.444 & 1554/PUN/2025 “15. However, considering the legal position that there is no power to condone the delay in filing an application under section 10(23C) of the Act, this Court is not inclined to exercise its extraordinary jurisdiction to condone the delay. However, this Court is inclined to give appropriate direction to the respondent to consider the petitioner's application as an application for the subsequent assessment year, namely, 2013-2014 in accordance with law. Such direction is issued considering the peculiar facts and circumstances of the case and that the petitioner could not have made an application for the subsequent assessment year 2013-2014, since their application for assessment year 2012-2013 was still pending consideration and the impugned order came to be passed only on 13-11- 2013. The respondent is at liberty to consider the amended objectives of the petitioner Trust. 16. Accordingly, the writ petition is partly allowed and the finding rendered by the respondent that the petitioner's application cannot be considered as the same is time barred is affirmed and the finding with regard to objectives of the Society by respondent holding that the Society cannot be said to be solely for education purpose is set aside. Consequently, the matter is remanded back to the respondent for fresh consideration and the petitioner's application is directed to be considered for the assessment year 2013-2014 in accordance with law and while doing so, may consider the amendments made to the objectives of the petitioner Trust, No Costs. M.P. No. 1 of 2014 is closed.\" 6. Similar is the view of Hon'ble Andhra Pradesh High Court propounded in Aurora Educational Society case (supra). The Hon'ble Orissa High Court has also considered this aspect in the case of Roland Educational & Charitable Trust (supra). The concluding paragraph of the judgment is worth to note in this aspect, which read as under: \"Be that as it may, we are here concerned whether in the absence of any statutory provision to condone the delay in presenting the application under section 10(23C)(vi), the Chief Commissioner of Income-tax can exercise any such power\". 7. The adjudicating authorities under the Income-tax Act are quasi judicial authorities. They can grant approval with retrospective effect if such mechanism is provided in the Act. There is no such provision nor there is any power to condone the delay after considering the reasonable reasons. A reasonable cause can be taken into cognizance for condoning the delay, if such provision is provided in the Act while considering any issue for adjudication. Therefore, considering the above proposition, we are of the view that Id. CIT (Exemption) has rightly rejected the application of the assessee for grant of approval under section 10(23C) (vi) of the Income-tax Act. All these three appeals are rejected. 8. In the result, all the appeals of the assessee are dismissed.\" Printed from counselvise.com 8 ITA Nos.444 & 1554/PUN/2025 5.9 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. 6. In view of the above, the application filed by the assessee is hereby rejected and the provisional approval dated 30/03/2022 under section 80G(5)(vi) read with clause (iv) of first proviso to section 80G(5) of the Act is hereby cancelled.” 4. Aggrieved with such rejection of approval u/s 80G by Ld. CIT(E), the assessee is in appeal before the Tribunal. 5. The Ld. Counsel for the assessee submitted that the assessee failed to make compliance before the Ld. CIT(A) on account of certain unavoidable circumstances. He submitted that in the interest of justice, the assessee should be given an opportunity to submit details before the Ld. CIT(E) to his satisfaction. It was accordingly requested that the matter may be restored to the file of the Ld. CIT(E) with a direction to consider the submissions made by the assessee and decide the issue afresh. The Ld. Counsel for the assessee further submitted that the appeal filed vide ITA No.444/PUN/2025 becomes infructuous if the issue in ITA No.1554/PUN/2025 is remitted back to the file of Ld. CIT(E). 6. The Ld. DR on the other hand heavily relied on the order of the Ld. CIT(E) rejecting the application for grant of approval u/s 80G of the Act. Printed from counselvise.com 9 ITA Nos.444 & 1554/PUN/2025 7. We have heard the rival arguments made by both the sides and perused the order of the Ld. CIT(E) and the paper book filed on behalf of the assessee. It is an admitted fact that despite sufficient opportunities granted by the Ld. CIT(E), the assessee did not respond to the notice(s) for which he rejected the application for grant of approval u/s 80G of the Act. It is the submission of the Ld. Counsel for the assessee that non-compliance before the Ld. CIT(E) was not intentional but was on account of certain circumstances beyond the control of the assessee. It is also his submission that given an opportunity, the assessee is in a position to present and substantiate its case by filing the requisite details before the Ld. CIT(E) to his satisfaction. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(E) with a direction to give one final opportunity to the assessee to substantiate its case by filing the relevant details and decide the issue as per fact and law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. ITA No.444/PUN/2025 8. Identical grounds have been raised by the assessee against the order passed by the Ld. CIT(E) refusing grant of approval u/s 80G against the application filed on 23.06.2024 in Form No.10AB under clause (iii) of first proviso to sub section (5) of section 80G of the IT Act, 1961 due to non-compliance. Following our Printed from counselvise.com 10 ITA Nos.444 & 1554/PUN/2025 observations above, we restore the matter to the file of Ld. CIT(E) to decide the issue afresh in the light of our above observations. 9. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open Court on 27th October, 2025. Sd/- Sd/- (R. K. PANDA) (ASTHA CHANDRA) VICE PRESIDENT JUDICIAL MEMBER पुणे Pune; दिन ांक Dated : 27th October, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune Printed from counselvise.com 11 ITA Nos.444 & 1554/PUN/2025 S.No. Details Date Initials Designation 1 Draft dictated on 24.10.2025 Sr. PS/PS 2 Draft placed before author 27.10.2025 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order Printed from counselvise.com "