KRUTADNYATA FOUNDATION,MUMBAI vs. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI

The sole grievance of the assessee is that the Ld. CIT(Exemptions) erred in rejecting the application filed for regularization of the provisional approval on the ground that Form No. 10AB was filed under an incorrect clause of section 12A(1)(ac) of the Act, without considering the assessee's contention that the e-filing portal did not permit filing of a fresh application under the correct clause once the earlier application was pending.

We have considered the rival submissions and perused the material available on record. It is an undisputed fact that the application has been rejected solely on the ground that it was filed under an incorrect clause of section 12A(1)(ac) of the Act and not on the merits of the assessee's eligibility. Considering the peculiar facts of the case and in the interest of substantial justice, we are of the view that the matter deserves to be restored to the file of the Ld. CIT(Exemptions).

Accordingly, the impugned order is set aside and the matter is restored to the file of the Ld. CIT(Exemptions) with a direction to afford the assessee a reasonable opportunity of being heard and to permit the assessee to file a fresh application in the prescribed form under the correct section/sub-clause, if otherwise permissible in law. Thereafter, the Ld. CIT(Exemptions) shall examine the application afresh and dispose of the same in accordance with law by a speaking order, uninfluenced by the observations made in the impugned order.

The assessee shall extend full cooperation and furnish all requisite documents/information as may be called for by the Ld. CIT(Exemptions).

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