CHANN GILL ROTARY ACL CHARITABLE TRUST,AMRITSAR vs. INCOME TAX OFFICER WARD-( EXEMPTION), AMRITSAR

ITA 942/ASR/2026Status: DisposedITAT Amritsar29 September 2026AY 2026-274 pages
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What did the Tribunal hold?

The Tribunal held that the rejection of the rectified application by the CIT(E) treating it as time-barred defeats the substantive eligibility of the trust for tax exemptions. The Tribunal found that the application for approval under Section 80G(5) was rejected due to filing under an incorrect clause, which was subsequently rectified by filing under the correct clause. In the interest of justice and fair play, the Tribunal directed the CIT(E) to reconsider the rectified application, taking into account the subsequent filing. The CIT(E) was also directed to provide a reasonable opportunity of being heard to the assessee and dispose of the application as per the provisions of law. The assessee was directed to furnish all documentary evidence and plead its case. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Chann Gill Rotary ACL Charitable Trust, filed an appeal against the order of the Commissioner of Income Tax (Exemption), Chandigarh, rejecting its application for approval under Section 80G of the Income-tax Act, 1961, for Assessment Year 2026-27. The initial application was filed on 30.09.2025. The CIT(E) intimated on 10.01.2026 that the application was filed under the wrong clause. The assessee then filed a corrected application on 14.01.2026. The assessee had previously been granted provisional approval in Form 10AC for AY 2024-25 to 2026-27. The CIT(E) did not consider the corrected application. The assessee contended that the second application was a direct consequence of the first and was filed to cure a technical defect, not as a delayed filing.

What were the issues?

1. Whether the rejection of the assessee's application for approval under Section 80G(5) by the CIT(E) was justified, given that the initial application was filed under an incorrect clause, which was subsequently rectified by the assessee? Assessee's Contentions: - The application for approval under Section 80G(5) was filed after provisional approval was granted. The correct clause should have been clause (iii) of the first proviso to Section 80G(5), but it was inadvertently filed under clause (ii), which is for regular registrations. - The error was procedural and technical, with no violation of statutory provisions. - The subsequent corrected application filed on 14.01.2026, pursuant to the defect pointed out by the CIT(E), should be considered and the application for approval should be decided on merits. Revenue's Contentions: - The Ld. DR relied on the order of the Ld. CIT(E).

Which sections of the Income-tax Act were involved?

Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: SH. SAKTIJIT DEY, HON’BLE & SH. GIRISH AGRAWAL, HON’BLE

For Appellant: CA and Sh. Tarun
Hearing: 29.09.2026Pronounced: 29.09.2026

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This is an appeal filed by the assessee against the order of rejection of an application for approval u/s 80G of the Income-tax Act, 1961 (the Act) vide order dated 28.07.2026, passed by ld. CIT(E), Chandigarh. Chann Gill Rotary ACL Charitable Trust 2 Assessment Year: 2026-27

2.

The assessee filed an application in Form 10AB seeking approval for registration u/s 80G which according to the ld. CIT(E) was filed under a wrong clause. On being made aware of this mistake by the ld. CIT(E) vide intimation letter dated 10.01.2026, assessee moved anothe

The order continues below.

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