ITAT Remands Section 80G Approval Application to CIT (Exemptions) for Fresh Consideration in Light of CBDT Circular on Delay Condonation:

The Income Tax Appellate Tribunal (ITAT), Mumbai Bench has admitted the appeal of Pushpa Chandra Raj Singhvi Charitable Trust for statistical purposes and restored the matter to the file of CIT(Exemptions), Mumbai for fresh consideration of its application seeking approval u/s 80G(5) of the Income-tax Act, 1961.

The matter pertains to the application filed by the trust in Form 10AB on 26 October 2025 for approval under Section 80G(5). The CIT (Exemptions) rejected the application by an order dated 27th June, 2026 on the ground that the same was filed beyond the time allowed. The authority had also held that it did not have the power to condone the delay in filing the application. As a result, the application was rejected without examining whether the trust qualified for approval on merits.

During the hearing, the trust’s authorised representative argued that the Central Board of Direct Taxes (CBDT) had subsequently issued Circular No. 06/2026 dated July 2, 2026, under Section 119(2)(b) of the Act. The circular allows condonation of delay in filing Form 10AB for approval under Section 80G(5) subject to the conditions specified therein. The trust contended that its application, which was filed on October 26, 2025, was within the period between October 1, 2025, to March 31, 2026, covered by the circular.

The tribunal, after considering the submissions and the material on record, observed that the application of the trust was rejected on the ground of delay only. The CBDT had issued the circular after the CIT (Exemptions) passed the rejection order. Hence, the tribunal said that the delay in the application had to be examined in the light of the directions in the circular.

Accordingly, the ITAT restored the matter to the file of the CIT (Exemptions), directing the authority to examine whether the CBDT circular applies to the trust’s case and deal with the delay in accordance with the circular and the applicable law. If the application is found eligible for consideration, the authority must also examine the trust’s eligibility for approval under Section 80G(5) on merits. The trust must be given a reasonable opportunity to present its case.

The tribunal clarified that the appeal was allowed for statistical purposes.