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Facts
The assessee-trust initially filed an application for approval under Section 80G(5)(iv) on 29.02.2024, which was later withdrawn. A fresh application for approval under Section 80G(5)(iii) was filed on 28.08.2024, incurring a delay of 58 days from the extended due date of 30.06.2024. The Ld.CIT(E) rejected this application due to the 58-day delay.
Held
The Tribunal acknowledged that the original application was filed under an incorrect sub-section and deemed it appropriate, in the interest of natural justice and equity, to condone the delay in filing the correct application. The application for approval under Section 80G(5)(iii) was set aside and restored to the file of the Ld.CIT(E) for fresh consideration and to pass an order in accordance with law, after providing an opportunity of hearing to the assessee.
Key Issues
Whether the Ld.CIT(E) was justified in rejecting an application for approval under Section 80G(5)(iii) due to a delay, when the assessee had previously filed an application under an incorrect sub-section within the due date.
Sections Cited
80G(5), 80G(5)(iii), 80G(5)(iv)
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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI S. R. RAGHUNATHA
आदेश /O R D E R
PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER:
This appeal by the assessee is filed against the order of the learned Commissioner of Income Tax (Exemptions), Chennai, dated 19.02.2025.
Before us, the ld.AR for the assessee stated that the assessee trust had filed applications before the ld.CIT(E) for approval u/s. 80G (5)(iii) of the Act in Form No.10AB on 28.08.2024. As pointed by the ld.AR, we find from the grounds that the assessee has filed the application for approval on 29.02.2024 under incorrect sub- clause (iv) of Section 80G(5) and hence withdrawn that application. However, the assessee filed the impugned application on 28.08.2024 with a delay of 58 days as :-2-: ITA. No.:733/Chny/2025 the extended date was expired on 30.06.2024. However, the ld.CIT(E) has rejected the application for approval u/s. 80G (5)(iii) of the Act Act in Form No.10AB on 28.08.2024, for the reason that there was a delay in filing the application of 58 days as per 4.4 of the order of the Ld.CIT(E). Hence, the assessee prayed for condoning the delay of 58 days in filing the application in Form 10AB, since the original application was filed well within the due date i.e. on 29.02.2024 and prayed for providing one more opportunity of hearing before the Ld.CIT(E).
The ld.DR relied on the impugned order and prayed for confirming the same.
We have heard both the parties, perused the record and impugned orders. It is an undisputed fact that the assessee had filed its application for approval earlier under the incorrect sub section of section 80G(5) on 29.02.2024 and withdrew the same for the purpose of filing the fresh application under correct sub section (iii) of section 80G(5) of the Act.
We note that the ld.CIT(E) passed an order in Form 10AD rejecting the approval u/s. 80G(5)(iii) of the Act filed in Form 10AB due to delay in filing the application for 58 days.
In our considered view, since the assessee had filed the original application under incorrect sub section of section 80G(5) of the Act, in the interest of natural justice and equity, we are inclined to condone the delay in filing the application for approval u/s.80G(5)(iii) of the Act by the assessee.
Therefore, keeping in mind the principles of natural justice we set aside and restore the application filed for registration u/s.80G(5)(iii) of the Act, in form 10AB back to the file of the Ld.CIT(E) with a direction to the Ld.CIT(E) to consider the :-3-: ITA. No.:733/Chny/2025 application filed by the assessee and pass the order in accordance with law by giving an opportunity of hearing to the assessee. Needless to say, the assessee should be diligent in responding to the notices and furnish all the required documents during the proceedings without seeking unnecessary adjournments and providing correct address and email ID. Thus, the matter is restored to the CIT(E), Chennai. If assessee fail to appear then, no lenient view will be taken by the ld.CIT(E).
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 11th June, 2025 at Chennai.