ITAT Raipur Sends Back Section 80G Application Rejected Only for Delay

Background of the Dispute

In Gram Bartori Vikas Shikshan Samiti Vs CIT (ITAT Raipur), the assessee society approached the Tribunal against the order of the CIT(Exemption), Bhopal dated 29.03.2026. The Commissioner had turned down the assessee’s application in Form 10AB for final approval under Section 80G(5) on a single ground – that the application under Section 80G(5)(iii) was not filed within the prescribed time limit.

This rejection came despite the fact that:

  • The assessee already held provisional approval under Section 80G; and
  • The assessee had also obtained permanent registration under Section 12A of the Income Tax Act 1961.

The appeal before the ITAT focused exclusively on whether such a purely technical rejection, without examining the assessee’s activities and eligibility under Section 80G(5), was legally sustainable.

Grounds Raised by the Assessee

The assessee challenged the Commissioner’s order broadly on the following lines:

  • The order dated 29.03.2026 rejecting the Form 10AB application for approval under Section 80G(5)(ii) was claimed to be unjustified, arbitrary and contrary to law.
  • The CIT(Exemption) had declined approval only citing delay in filing the application under Section 80G(5)(iii) without considering that the assessee was carrying out genuine charitable work.
  • The delay was asserted to be bona fide, neither deliberate nor intentional, and therefore deserving of condonation.
  • The Commissioner allegedly took an erroneous view that he had no authority to condone the delay and did not apply a liberal approach expected in the case of charitable institutions.
  • It was contended that refusal on a mere technicality defeats the very legislative purpose of grant of exemption to charitable entities.
  • The assessee also complained that its objects, activities and genuineness were not examined at all before rejecting the application.

The assessee reserved its right to modify or add grounds at the time of hearing.

Activities and Charitable Profile of the Assessee

During the hearing before the Tribunal, the Director of the assessee society appeared and explained its functioning in detail. Key submissions were:

  • The assessee is duly registered under Section 12A and is engaged in charitable activities targeted mainly at tribal communities and rural villagers.
  • It works in collaboration with NABARD, implementing various development projects.
  • In the State of Chhattisgarh, particularly in Korba, Sakti and Janjgir districts, the assessee focuses on improving farming practices and income levels of small and marginal farmers and tribal households.
  • One of its important initiatives is encouraging and facilitating cultivation of cashew and mango, crops that were traditionally not grown in those regions.

Key Focus Areas of the Society

The assessee described its mission as promoting sustainable and inclusive development, with emphasis on:

  • Education initiatives in rural and tribal areas
  • Tribal development programmes
  • Water resource management and conservation activities
  • Women’s empowerment through community-based interventions
  • Agricultural training and capacity building for farmers
  • Marketing support to connect producers with markets and improve realisation

To substantiate its claims, the assessee produced financial statements for FY 2024-25 (relevant to AY 2025-26) showing the flow of funds, project-wise spending, and documented collaboration with NABARD.