NAXALBARI SARADA SHISHU TEERTHA,SILIGURI vs. CIT (EXEMPTION), KOLKATA,, KOLKATA

The facts of the case in brief are that the assessee is a charitable entity, registered as charitable organization and granted approval u/s 80G(5)(i) of the Act for A.Y. 2022-23. The assessee filed an application in Form No.10AB seeking approval u/s 80G(5)(ii) of the Act. The ld. CIT(E), on verification of application of the assessee, found that assessee does not possess any approval

Being aggrieved, dissatisfied, the assessee preferred appeal before us. The learned Authorized Representative (ld. AR) submits that due to the inadvertent error in section of sub-clause while filing initial application in Form No.10A, wrong section has been mentioned that cannot be fatal and cannot be a ground for rejection of approval which has already been granted. The ld. AR submits that while passing the order, the ld. CIT(E) erred in law that the approval granted u/s 80G(5)(i) of the Act in void ab initio as it is obtained by submitting wrong facts, ignoring the facts submitted with the Form No.10A by the assessee. The ld. AR submits that appeal of the assessee be remitted back to the file of ld. CIT(E) for fresh consideration as mentioning of wrong section cannot be a ground to reject the approval which has already been granted.

The learned Commissioner of Income-tax - Departmental Representative (ld. CIT-DR) did not raise any objection.

Upon hearing the submission of the ld. AR of the representative parties and on perusal of the facts, it appears that ld. CIT(E) has rejected the approval as it has been mentioned the wrong section. It is a fact that assessee is a charitable entity and he has been granted approval u/s 80G(5)(i) of the Act for the A.Y. 2022-23 to A.Y. 2026-27. We find force in the argument in the assessee that due to the error in the selection of sub-clause while filing application in Form No.10AB cannot be a ground to reject the application for approval which has already been granted. Accordingly, we remit the appeal of the assessee to the file of ld. CIT(E) for fresh consideration after hearing the assessee.