SANKALP FOUNDATION,SANKALP FOUNDATION V. CIT(E), JAIPUR, JAIPUR

ITA 1006/JPR/2025

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The case involves Sankalp Foundation, which applied for approval under section 80G(5)(iii) of the Income Tax Act to the CIT(E), Jaipur. The initial application was dismissed on grounds that the foundation's provisional registration under section 80G(5)(iv) had expired and that the foundation had not commenced activities. The Tribunal found that the CIT(E) had not adequately considered the relevant CBDT circulars that could affect the decision on the application. Consequently, the Tribunal remitted the case back to the CIT(E) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780039 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 07-07-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALKA GAUTAM
• Assessee Lawyers: P.C. PARWAL
• Keywords: Opportunity of being heard

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B-Bench” JAIPUR Jh jkBkSM+ deys'k t;UrHkkbZ] ys[kk lnL; ,o aJh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 1006/JPR/2025 Sankalp Foundation 112-B, Shakti Nagar Dadabari, Shakti Nagar, Kota. cuke Vs. The CIT(E), Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAJTS2510G vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assessee by : Shri P.C. Parwal, C.A. jktLo dh vksjls@Revenue by: Mrs. Alka Gautam, CIT-DR lquokbZ dh rkjh[k@Date of Hearing : 06/10/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 07/10/2025 vkns'k@ORDER PER: Narinder Kumar, Judicial Member, Appellant was applicant before Learned CIT(E), in its application submitted on 23.11.2024, for approval u/s 80G(5)(iii) of the Income Tax Act (hereinafter referred to as “the Act”. Said application has been dismissed, while observing in the impugned order that the applicant was provisionally registered earlier on 07.04.2022, u/s 80G(5)(iv), for a period only up to the assessment year 2024-25, and the said provisional registration expired in March, 2024. Printed from counselvise.com 2 ITA No. 1006/JPR/2025 Sankalp Foundation, Kota. Learned CIT(E) was not convinced with the reply submitted by the applicant in this regard, and he observed that he had no power to condone the delay in filing of the application. Consequently, he held that the application u/s 80G(5)(iii) was not maintainable. Learned CIT(E) also rejected the application on another ground i.e. non commencement of activities by the applicant. 2. Arguments heard. File perused. 3. Ld. AR for the appellant-applicant has submitted that the applicant stands registered u/s 12A(1)(ac)(i) for 5 years. Ld. AR has further submitted that as per Circular No. 11 of 2022 issued by CBDT on 03.06.2022, where, due to technical glitches Form No. 10AC was issued during financial year 2021-22, with the heading ‘ order for provisional approval’ instead of the heading ‘order for approval’, all such Forms 10AC were to be considered as “Order for approval”. Again vide Circular No. 06/2023 dated 24.05.2023, CBDT clarified that the trust already in existence were required to apply afresh for registration/approval, and further that once registered, same would be valid for 5 years. Accordingly, Ld. AR for the appellant has submitted that Learned CIT(E) be directed to consider the order dated 7.4.2022, granting Printed from counselvise.com 3 ITA No. 1006/JPR/2025 Sankalp Foundation, Kota. provisional approval u/s 80G(5), as order for approval under the said provision, for 5 years, i.e. upto the assessment year 2027-28. 4. On going through the impugned order, we find that Learned CIT(E) has not considered the above said submission and the instructions issued vide circular dated 03.06.2022 and 24.05.2023, as regards approval u/s 80G(5). Therefore, we deem it a fit case to remit the matter to Learned CIT(E) to consider the above said issue, while taking into consideration the relevant circular issued by CBDT, and decide the application u/s 80G(5)(iii) of the Act afresh, in accordance with law, after providing to the applicant, opportunity of being heard 5. As regards other ground of non commencement of activity, in the impugned order, we find no detailed discussion on said issue. In para 2.2 of the impugned order, Learned CIT(E), while referring to the time limits for filing of the application u/s 80G(5) observed that he had no power to condone delay in filing of the application in Form no. 10AB, and accordingly, held said application as not maintainable. Result 6. In the given situation, when the matter has already been remitted to Learned CIT(E), this appeal is disposed of, for statistical purpose, and with Printed from counselvise.com 4 ITA No. 1006/JPR/2025 Sankalp Foundation, Kota. the direction that Learned CIT(E) shall decide the application u/s 80G(5)(iii) of the Act, afresh in view of the circulars issued by CBDT, and in accordance with law, after providing reasonable opportunity of being heard to the applicant, and that too, in accordance with law. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 07/10/2025. Sd/- Sd/- ¼jkBkSM+ deys'k t;UrHkkbZ ½ ¼ujsUnz dqekj½ (RATHOD KAMLESH JAYANTBHAI) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 07/10/2025 *Santosh vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Sankalp Foundation, Kota. 2. izR;FkhZ@ The Respondent- CIT(E), Jaipur. 3. vk;dj vk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZQkbZy@ Guard File ITA No.1006/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar Printed from counselvise.com "