ITAT Remands Foundation’s Section 80G Approval Application for Fresh Verification:

Cherry Blossom Foundation filed an application on 29/09/2025 seeking approval under Section 80G(5) of the Income Tax Act, 1961, through Form No. 10AB. The CIT (E), rejected the application on the ground that the Foundation had never been granted approval under Section 12A and that no valid registration certificate in Form 10AC and 10AD was available on record.

The authority further observed that the applicant had failed to satisfy the conditions prescribed under Section 80G(5)(ii) of the Act, as the income of the institution was liable to be included in its total income under Sections 11 and 12.

On examining the documents, the Tribunal found that the Foundation had been granted provisional approval under Section 80G(5) in Form 10AC by the DIT (CPC) on 31/05/2021. It had also received provisional registration under Section 12A(1)(ac)(i) on the same date. The Tribunal noted that the provisional registration under Section 12A and approval under Section 80G(5) were valid from Assessment Year 2022-23 to Assessment Year 2026-27.

After considering the paper book and submissions of the Departmental Representative, the Tribunal observed that the rejection order had apparently been passed under a fundamental misconception that the Foundation had neither obtained provisional approval in Form 10AC nor secured registration in Form 10AB before filing its application under Section 80G(5).

The Tribunal found that the Foundation had, in fact, obtained provisional registration under Section 12A and provisional approval under Section 80G(5), both valid up to Assessment Year 2026-27. It further observed that the Foundation appeared to have obtained renewal of its registration under Section 12A up to Assessment Year 2036-37, although this fact required verification.

In view of these circumstances, the Tribunal considered it appropriate and in the interest of justice to restore the matter to the file of the CIT (E). Accordingly, the Tribunal allowed the assessee's appeal for statistical purposes.