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Facts
The assessee's application for registration under Section 80G was rejected by the CIT(E) because its online application mistakenly indicated its status as a 'religious trust'. The assessee contended this was an inadvertent omission and not a valid ground for denial.
Held
The Tribunal, citing precedent that technical mistakes should be overlooked, set aside the CIT(E)'s order. It directed the CIT(E) to re-adjudicate the application, ignoring the technical error regarding the trust's status and allowing the assessee to provide necessary documents to establish its correct status.
Key Issues
Whether a technical error in stating the trust's status during an online application for 80G registration can be the sole ground for rejection, or if the application should be considered on merits by allowing rectification.
Sections Cited
80G, 80G(5)
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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T VARKEY & SHRI AMITABH SHUKLA
आयकर अपीलीय अधिकरण, ‘बी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य के समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2345/Chny/2024 निर्ाारण वर्ा /Assessment Years: - Good Works India, Commissioner of Income No.292 R 601 KLP Utsav Apartments, Tax(Exemption) Coods Road, Otteri, Chennai Chennai-600 012. [PAN: AAETG6011F] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant) अपीलार्थी की ओर से/ Assessee by : Ms. Joshita Jothi, C.A प्रत्यर्थी की ओर से /Revenue by : Shri K.N.Dhandapani, CIT सुिवाई की तारीख/Date of Hearing : 28.11.2024 घोर्णा की तारीख /Date of Pronouncement : 22.01.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M :
This appeal is filed against the order bearing DIN & Order No.ITBA/EXM/F/EXM45/2024-25/1066650250(1) dated 12.07.2024. Through the aforesaid appeal the assesse has challenged order u/s 80G dated 12.07.2024 passed by CIT(E), Chennai.
2.0 The only controversy in the impugned appeal is that the Ld CIT( E) has rejected the application of the assessee for grant of registeration u/s 80 G for the reasons that the assessee had shown its status as a religious trust while filing its online application . Before us the Ld . counsel Page - 1 - of 4 :- 2 -: of the assessee has submitted that the impugned mistake was a case of inadvertent omission by an over sight and that the same may not be made a case for denying the assessee its registration. The Ld DR argued that in the present electronic eco system, the CIT ( E ) has no powers to ignore such mistakes on his own .
3.0 We have heard rival submissions in the light of material on records. We have noted that a Hon’ble coordinated bench of this tribunal in the case of Save Shakti Foundation in its order vide dated 26/4/2024 held that technical mistakes need to be ignored while considering grant of benefits to an assessee. Thus it was held that “……Upon perusal, it transpires that the assessee is aggrieved by rejection of an application filed by it on 27.09.2023 seeking registration under clause (ii) of first proviso to Sec. 80G(5). The Ld. CIT(Exemptions), vide impugned order dated 07.03.2024, rejected the same on the ground that the assessee was granted provisional approval up-to AY 2024-25. Therefore, the application ought to have been made under clause (iii) 2 instead of clause (ii). The application was held to be not-maintainable which has led to present appeal by the assessee.
The Ld. AR referred to recent Circular No.07/24 issued by CBDT on 25.04.2024 extending time limit for all such applications to 30.06.2024. The Ld. Sr. DR submitted that the appeal itself may be heard and the matter may be remitted back in the light of aforesaid Circular.
We are of the opinion that mere mistake in filing the form would not vitiate the claim of the assessee. Therefore, we direct Ld. CIT(E) to grant an opportunity to assessee to correct the said mistake and consider the application on merits….”.
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4.0 We have noted the Hon’ble coordinate benches of this tribunal has been taking similar decisions on the impugned subject as in its decision at dated 22/7/24 & dated 28/8/24. We have also noted the fundamental of jurisprudence that when it comes to delivery of justice, substance should always prevail over form. Any unintentional noncompliance to any rule/procedure cannot be a ground for denying the taxpayer a benefit which it otherwise is entitled to. Be that as it may we are of the view that ends of justice would be met if the assessee is given one more opportunity to plead its case before the CIT ( E ) . Accordingly, we set aside the order of Ld CIT (E) and direct him to readjudicate assesses application for grant of registration u/s 80 G by ignoring the impugned technical mistake of indicating status of trust as an religious trust. He may ask the assesee to provide necessary hard copies of documents vij trust deed etc to effectively establish its status of whether a religious trust or not . Accordingly all the grounds of appeal raised by the assessee are allowed for statistical purposes.