GULSON FOUNDATION,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

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ITA 1507/MUM/2023Status: DisposedITAT Mumbai17 July 2023AY 2022-20235 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s order, remanding the matter back to the CIT(E) to provide the assessee with another opportunity to present their case. The grounds of appeal were allowed for statistical purposes.

What were the facts?

The assessee trust filed an application for approval under Section 80G in Form 10AB instead of Form 10A. The CIT(E) rejected the application due to this procedural error, despite the assessee's claim of bona fide belief and subsequent provisional approval in Form 10AC.

What were the issues?

Whether the rejection of an 80G approval application solely on the ground of filing in the wrong form (10AB instead of 10A) is justified, and if a technical delay or bona fide mistake should be condoned.

Which sections of the Income-tax Act were involved?

Section 80-G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH MUMBAI

Before: SHRI PAVAN KUMAR GADALE & MS PADMAVATHY S

Hearing: 18/07/2023Pronounced: 24/07/2023

आदेश / ORDER

PER PAVAN KUMAR GADALE - JM:

1.

The appeal is filed by the assessee against the order of the Commissioner of Income Tax (Exemptions)(CIT(E)), Mumbai. The assessee has raised the following grounds of appeal:

1 On the facts and circumstances of the case, the Id. Commissioner of Income tax (Exemption) erred in rejecting the application of the appellant in Form 10AB filed on 26-09-2022 for approval under sub-section (5) of section 80-G of the Income tax Act 1961.

2.

The Id. Commissioner of Income tax (Exemption) erred in not condoning the technical delay in filing Form 10A and granting approval under section 80-G of the Act and not considering the fact that the appellant had inadvertently filed Form 10AB in place of Form 10A and thus the delay was purely technical and venial in nature.

3.

The Id. Commissioner of Income tax (Exemption) erred in not appreciating the fact that the appellant trust was already approved for the purpose of Section 80-G of the Act under the pre- amended provisions of Section 80-G and was eligible for continuity of such approval and all the particulars and documents for grant of such approval under the amended provisions of Section 80-G were already submitted by the appellant and available with the Commissioner of Income tax (Exemption) for grant of such approval and he ought to have taken a judicious view in granting approval sought under section 80-G of the Act and not rejecting the approval application only on the ground that no separate form 10A was filed for approval under section 80G of the Act. 2. The brief facts of the case are that, the assessee is a trust registered under the provisions of the Bombay Public Trust Act 1950. The Assessee has filed an application for approval u/s 80G of the Act and the CIT(E) find that the assessee has filed the application in Form.no.10AB instead of Form.No.10A and a show cause notice was issued. In compliance, the assessee has filed a letter dated 08.02.2023 mentioning that they were under a bona fide belief that the filing of Form.no.10AB is common and sufficient to obtain registration U/sec12A of the Act and the approval under section 80G of the Act. Subsequently, the assessee has obtained Form.no.10AC being the provisional approval u/s 80G of the Act from 28.02.2023 and the assessee has sought for the approval under section 80-G of the Act from 26-09-2022 to 28-02-2023. But the CIT(E) found that the assessee has not filed a valid application as per provisions of the Act and has rejected the assessees application in Form.No.10AB dated 26-09-2022 vide order dated 9-03-2023. Aggrieved by the order of the CIT(E),the assessee has filed appeal before the Hon’ble Tribunal.

3. At the time of hearing, the Ld.AR submitted that CIT(E) has erred in not considering the details filed in the application for approval and compliance to e-notice. And the CIT(E) has erred in not considering the delay in filling Form. No 10A and the bonafide belief/ sufficient reasons explaining the case and has rejected the application. The Ld.AR substantiated the submissions with the factual paper book, CBDT Circular and judicial decisions and prayed for allowing the appeal. Contra, the Ld.DR supported the order of the CIT(E).

4.

We have heard the rival submissions and perused the material available on record. The assessee has filed the application in Form.No.10AB for approval under section 80G(5) of the Act, the CIT(E) in course of hearing proceedings has issued e-notice on the assessee through ITBA portal for certain clarifications and additional information. Whereas the CIT(E) observed that the assessee has filed the application in Form.no.10AB instead of Form.No.10A and a show cause notice was issued, in reply the assessee has filed the detailed explanations on 8.02.2023 mentioning that it was under the bona fide belief that the filing of Form.no.10AB is common and sufficient to obtain the approval under section 80G of the Act. Further the Ld.AR submitted that the assessee has subsequently obtained Form.No.10AC granting provisional registration U/sec80G of the Act w.e.f 28.02.2023 but the CIT(E) has rejected the present application. Therefore, We considering, the facts, submissions and the principles of natural justice shall provide with one more opportunity of hearing to the assessee to substantiate the case along with evidences and information. Accordingly, set aside the impugned order and direct the CIT(E) to consider the assessee trust application as per the law and we allow the grounds of appeal of the assessee for statistical purposes.

5.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

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