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Facts
The assessee Trust applied online in Form No.10AB for approval under Section 80G(5) of the Income Tax Act. The Ld.CIT(E) rejected this application on 24.12.2024, citing non-compliance with notices, despite the assessee having filed the requested documents on the same day after being granted an extension, and the statutory deadline for passing the order being 31.12.2024.
Held
The Tribunal found that the Ld.CIT(E) erred in not considering the documents filed by the assessee, as there was still time available before the statutory deadline. Consequently, the Tribunal set aside the impugned order and restored the application to the CIT(E) for fresh processing in accordance with law, directing both the assessee and the CIT(E) to act diligently.
Key Issues
Whether the Ld.CIT(E) was justified in rejecting the assessee's application for Section 80G approval due to alleged non-compliance, when the assessee had filed the required documents within the statutory period available for passing the order.
Sections Cited
80G, 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI AMITABH SHUKLA
आदेश / O R D E R
PER ABY T. VARKEY, JM:
1. This is an appeal preferred by the assessee Trust against the order of the Learned Commissioner of Income Tax (Exemption), (hereinafter referred to as “the Ld.CIT(E)”), Chennai, dated 24.12.2024 rejecting the application filed online on 22.06.2024 in Form No.10AB under clause (iii)
of first proviso to section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘) seeking approval u/s.80G of the Act.
(AY -) C. S. Krishna Iyer Trust :: 2 ::
The Ld.AR of the assessee brought to our notice that the Ld.CIT(E) issued show cause notice on 14.12.2024 and directed the assessee to furnish details by 18.12.2024 and warned the assessee that no further opportunity would be granted since the limitation time to dispose off the appeal expires on 31.12.2024. According to the Ld.AR of the assessee after seeking time on 18.12.2024, the assessee had filed the details called for by the Ld.CIT(E) on 24.12.2024 but the Ld.CIT(E) ignored the same and passed the impugned order on 24.12.2024. According to the Ld.AR, there was time till 31.12.2024 to pass the order and the Ld.CIT(E) ought to have considered the details filed on 24.12.2024 and then only passed the order. Therefore, he prays that one more opportunity may be
Per contra, the Ld.DR doesn’t want us to give one more innings to the assessee.
Having heard both the parties and after perusing the records, we note that the assessee had filed application seeking approval u/s.80G of the Act on 22.06.2024 which was processed by the Ld.CIT(E) and he issued notices calling for relevant documents and issued show cause notice on 14.12.2024 directing the assessee to respond before 18.12.2024 and the assessee sought time for filing of details which was granted by the Ld.CIT(E) up to 23.12.2024. The assessee is noted to (AY -) C. S. Krishna Iyer Trust have filed the documents called for by the Ld.CIT(E) on 24.12.2024. The Ld.CIT(E) has rejected the application seeking approval u/s.80G of the Act by holding it as not maintainable for not complying with his notices issued to it. We note that the Ld.CIT(E) had time till 31.12.2024 for disposal of the application, therefore, he erred in brushing aside the relevant documents filed by the assessee on 24.12.2024 and instead holding that the assessee didn’t file relevant documents in support of application when there was still time left with him to consider the application and pass the order. Therefore, we set aside the impugned order of the Ld.CIT(E) and restore the application back to his file with a direction to process the application in accordance to law after hearing the assessee. The assessee Trust is directed to be diligent and ensure that all the relevant documents called for by the Ld.CIT(E) is timely uploaded and the Ld.CIT(E) after hearing the assessee to pass order in accordance to law.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on the 28th day of May, 2025, in Chennai.