ITAT Remits Section 80G Renewal Application to CIT(E) for Fresh Consideration in Light of CBDT Circular:

The Income Tax Appellate Tribunal (ITAT), Guwahati Bench, has remitted the matter of Rajmal Kamal Chand Sethia Charitable Trust to the Commissioner of Income Tax (Exemptions) [CIT(E)], Kolkata, for fresh consideration of its application for renewal of approval under Section 80G(5)(ii) of the Income Tax Act. The tribunal directed the tax authority to examine the applicability of CBDT Circular No. 06/2026 dated July 7, 2026, and decide the matter in accordance with the law after giving the trust an opportunity to present its case.

In the present case, the Section 80G approval of Rajmal Kamal Chand Sethia Charitable Trust for the Assessment Years 2022-23 to 2026-27 was valid upto March 31, 2026. The assessee, on October 09, 2025, sought renewal of approval in Form No. 10AB and also furnished a petition seeking condonation of delay. However, the CIT(E) rejected the application.

Subsequently, the assessee filed an appeal before the ITAT Guwahati, challenging the CIT(E)'s rejection order. The assessee submitted that the CBDT circular dated July 7, 2026, covered applications filed between October 1 and October 9, 2025, and was applicable to its case. The Revenue opposed the appeal, arguing that the trust had not complied with the prescribed filing timeline.

After considering the submissions, the ITAT observed that "the assessee filed Form No. 10AB on 09.10.2025 for seeking approval u/s 80G(5)(ii) the earlier approval granted for the AY 2022-23 to AY 2026-27 which was going to expire on 31.03.2026. Accordingly, the assessee was required to file for renewal on or before 30.09.2026. However, the application was filed on 09.10.2025 with a condonation petition but the Ld. CIT(E) has no power to condone the delay. During the course of hearing, the Ld. Counsel relying on circular issued by CBDT Circular No. 06/2026 dated 07.07.2026, this circular is issued for the difficulties faced by the tax payers who has filed application in between 01.10.2025 to 09.10.2025, therefore, prescribed period is come by this Circular issued by CBDT."

Accordingly, the tribunal restored the matter to the CIT (Exemptions) to examine the circular's applicability and decide the application afresh after hearing the trust. The tribunal also directed the trust to support its claim with relevant documents and avoid unnecessary adjournments. It cautioned that no further leniency would be granted in case of non-compliance. The appeal was partly allowed for statistical purposes.