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Facts
The assessee, a charitable trust, filed an application for approval under section 80G(5) of the Income-tax Act. The first application filed on 21.09.2023 was rejected due to delay and lack of details. A second application on 27.05.2024 was also unsuccessful. Appeals were filed against these rejections.
Held
The Tribunal condoned the delay in filing the appeal for ITA No. 2330/PUN/2024. It held that the first application dated 21.09.2023 was a valid application considering a subsequent CBDT circular. The matter was restored to the CIT(E) for adjudication on merits.
Key Issues
Whether the assessee's application for approval under section 80G(5) was valid, and if the delay in filing the appeal should be condoned.
Sections Cited
80G(5), 12A
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Income Tax Appellate Tribunal, A BENCH,
Before: Dr. MANISH BORAD & SHRI VINAY BHAMORE
ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER:
- The captioned appeals at the instance of assessee are directed against the order dated 20.03.2024 and 16.11.2024 passed by Ld.CIT(E), Pune under second proviso to section 80G(5) of the Income-tax Act, 1961.
Registry has informed that ITA 2330/PUN/2024 has been filed with a delay of 166 days. Affidavit along with application for condonation of delay is placed on record. Perusal of the same indicates that assessee was prevented by reasonable cause for not filing the appeal within the prescribed time limit. Placing reliance on the judgement of Hon’ble Apex Court in the case of Collector, Land Acquisition vs. Master Katiji and Others(1987) 167 ITR 471(SC) (Supreme Court) & in the case of Inder Singh Vs State of Madhya Pradesh judgement dated 21.03.2025 (2025) INSC 382) and also taking a liberal and justice oriented approach the delay in filing the appeal in is condoned and the appeal is admitted for adjudication.
At the outset Ld. Counsel for the assessee submitted that on 21.09.2023 assessee filed the first application for getting approval u/s 80G(5) of the Act but the same was rejected on two grounds firstly the application was filed after the prescribed due date and secondly the assessee could not furnish necessary details. After the rejection of the application dated 21.09.2023 the assessee filed the appeal before this Tribunal and simultaneously filed another application on 25.07.2024 for getting approval u/s 80G(5) of the act because Central Board of Direct Taxes (CBDT) vide Circular No. 7/2024 dated 25.04.2024 further extended the time limit upto 30.06.2024 for filing application on Form 10AB for registration u/s 12A and approval u/s 80G(5) of the Act. However the assessee again failed to succeed. The Ld. Counsel for the assessee has prayed that the first application filed on 21.09.2023 should be considered as a valid application and opportunity may please be granted for going before Ld. CIT(E) for necessary adjudication on merits of the case.
Ld. Departmental Representative (DR) on the other hand vehemently argued supporting the order of Ld. CIT(E).
We have heard rival contentions and perused the record placed before us. The assessee is a charitable trust formed for carrying out the object of Educational activities. The assessee in order to get approval under clause (iii) to the first proviso to section 80G(5) of the Act filed the application on 21.09.2023 but the same was rejected and the assessee again filed another application on 27.05.2024 but again failed to succeed.
We on going through both the impugned orders observe that the first application was rejected being barred by limitation. However after the rejection of the first application, Central Board of Direct Taxes (CBDT) came up with the circular No. 7/2024 dated 25.04.2024 extending the due date for filing of application on Form 10AB upto 30.06.2024. Thus the first application filed by the assessee on 21.09.2023 is a valid application.
Under these given facts and circumstances the assessee application dated 21.09.2023 against the rejection of which assessee has filed the appeal in is hereby restored back to the file of Ld. CIT(E) for necessary adjudication on merits and after providing necessary opportunity to the assessee, Ld. CIT(E) shall decide the application dated 21.09.2023 filed for getting approval under clause (iii) of first proviso to section 80G(5) of the Act in accordance with law. The grounds of appeal raised by the assessee in ITA No. 2330/PUN/2024 are allowed for statistical purposes.
So far as is concerned, the same is hereby dismissed as infructuous because it is a duplicate application filed by the assessee on 27.05.2024 u/s 80G(5) of the Act.
In the result ITA No. 2330/PUN/2024 is allowed for statistical purposes and ITA No. 2542/PUN/2024 is dismissed as infructuous.