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Facts
The assessee, a charitable trust, had its application for approval under Section 80G denied by the CIT(Exemptions) for failing to provide Form 10AC by the stipulated date. The trust contended that they had submitted the required documents and forms, and were not given a proper opportunity to rectify a clerical error in mentioning the wrong sub-clause. They also argued that they had already obtained registration under Section 12A and were providing meritorious services.
Held
The Tribunal held that the CIT(Exemptions) erred in rejecting the application without giving the assessee a reasonable opportunity to rectify the error. The Tribunal observed that the trust had already been granted registration under Section 12A and was providing valuable services. Therefore, the matter was restored to the file of the CIT(Exemptions) to consider the application afresh.
Key Issues
Whether the CIT(Exemptions) was justified in rejecting the 80G approval application without providing an opportunity to the assessee to correct a procedural lapse, especially when the trust was already registered under Section 12A.
Sections Cited
80G, 10AC, 10AB, 12A, 80G(5)(ii)
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Income Tax Appellate Tribunal, ‘D’ BENCH
Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL
आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeals have been filed by the assessee against order passed by ld. CIT(Exemption) denying the approval u/s.80G on the ground that assessee has not provided Form 10AC on or before 01/10/2024 and therefore, application filed in Form 10AB cannot be processed.
Before us it has been stated that assessee has already been granted 12A and had stated as under:- “1.The Commissioner of Income Tax (Exemptions), Mumbai, erred in rejecting the Appellant Trust's application for revalidation under Section 80G of the Income Tax Act, 1961, 2 The Commissioner of Income Tax (Exemptions) Mumbai, failed to appreciate that the Appellant Trust had received a letter dated 16.09.2024 in respect of proceedings under Section 80G(5)(ii) vide DIN ITBA/EXM/F/EXM45/2024- 25/1068717413(1), dated 16.09.2024, seeking documentary evidence of 10AC in the case of 80G on or before 01.10.2024 3 The Appellant Trust had submitted copy of 10AC [Order for Provisional Registration] for 80G validation and also copy of Form10AC [Order for Registration] for 12A on 25.09.2024, as per Income Tax Department's letter dated 16.09.2024, acknowledged by the Office of the Commissioner of Income Tax [Exemptions] H.Q. on 25.09.2024 4. The Appellant Trust had received Rejection Order dated 19.10.2024 stating that Appellant Trust is not qualified to make the application under Section 80G(5)(ii), since the application filed is non-maintainable and stands rejected; and Others Shree Mumbai Dasha Zarola Vanik Sajanu Charitable Trust and Others 5. The Commissioner of Income Tax (Exemptions), Mumbai, failed to give the Appellant Trust reasonable opportunity to validate the 80G Certificate. 6 The Appellant Trust had made an enquiry personally and was informed that the Section in which the Application vide Serial No. 14-Clause of First Proviso to Sub-Section (5) of Section 80G The Appellant Trust owing to inadvertence had mentioned in Clause-2 of First Proviso to Sub-Section(5) of Section 80G. 7 The Appellant Trust was deprived out of natural justice since no opportunity was given to rectify the error occurred in selecting the clause for revalidation.
The Appellant Trust is a Charitable Trust, which is rendering meritorious services and providing marvelous services for which it is established; 9. The Appellant Trust should get the benefit of 80G since the Trust is fully depending on Donations to meet the benevolent cause;
Under these facts and circumstances as stated by the assessee above it would be proper that this matter should be restored back to the file of the ld. CIT(Exemption), Mumbai to consider the form afresh and assessee is also directed to file the correct form before the ld. CIT(E). The ld. CIT(E) should consider this form in accordance with law and looking to the fact that assessee has already been granted registration u/s.12A, the application should be considered in light of the provisions of the Act.
Order pronounced on 29th January, 2025.