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

In this case, the Assessee was granted provisional approval u/s 80G of the Act in form 10AC, which was valid from 05.09.2022 to A.Y. 2025-26 and therefore the Assessee by filing application in form 10AB had sought for regular approval u/s 80G(5) of the Act.

The Ld. Commissioner rejected the said application filed by the Assessee by mainly holding as under:

The Assessee, being aggrieved, challenged the impugned order, by filling instant appeal before this Court.

Having heard the parties and perusing the material available on record and giving thoughtful considerations to the peculiar facts and circumstances of the case, we observe that the Assessee, in the application for registration u/s 80G(5) of the Act, may be overlooking or inadvertently mentioned sub clause (ii) of 1st proviso to sub section (5) of section 80G of the Act instead of sub clause (iii) of the said proviso. In our considered view, the Ld. Commissioner would have sidelined this mistake and decided the application filed by the Assessee in its right perspective and proper manner, but simply on the wrong mentioning of the sub clause, rejected the application, which in fact expanded the litigation, and therefore such approach is not acceptable. Thus, was are inclined to set aside the impugned order and consequently remanding the case to the file of the Ld. Commissioner for decision afresh, by taking into consideration the application filed by the Assessee for registration u/s 80 G(5) of the Act under sub clause (ii) to the proviso to such section by considering the same as filed under sub clause (iii) to the proviso to section 80G(5) of the Act. Thus, the case is accordingly remanded to the file of Ld. Commissioner for decision afresh.

In the result, the appeal filed by the Assessee stands allowed for statistical purposes.