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Facts
The assessee filed an application for approval under Section 80G of the Income Tax Act. The CIT(E) rejected the application, treating it as non-maintainable, due to the assessee's failure to provide required documents and clarifications, despite multiple opportunities.
Held
The Tribunal condoned the delay in filing the appeal. While acknowledging the assessee's non-compliance, the Tribunal, in the interest of justice, restored the issue to the CIT(E) for a final opportunity to the assessee to submit details and for a fresh adjudication.
Key Issues
Whether the CIT(E) was justified in rejecting the application for approval under Section 80G for non-compliance, and if a final opportunity should be granted to the assessee.
Sections Cited
80G, 80G(5), 80G(5)(vi)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, PUNE
Before: SHRI R.K. PANDA & MS. ASTHA CHANDRA
आदेश / ORDER
PER ASTHA CHANDRA, JM :
This appeal filed by the assessee is directed against the order dated 08.10.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”)] rejecting the application for approval u/s 80G of the Income Tax Act, 1961 (the “Act”).
2. The assessee has filed this appeal with a delay of 51 days. The assessee has filed an application for condonation of delay along with a sworn affidavit stating therein the reasons for delay in filing of the appeal. On perusal of the same, we are satisfied that the delay in filing of appeal is not intentional or deliberate but has occurred for the reasons mentioned in the affidavit. After hearing both the sides, we are of the view that the delay is attributable to the sufficient cause. We, therefore, condone the said delay and proceed to decide the appeal.
Facts of the case in brief, are that the assessee filed an application in Form No.10AB on 24.04.2024 for approval under clause (ii) of first proviso to sub section (5) of section 80G of the Act. The Ld. CIT (E) has noted that the section code of the application is '13-Clause (ii) of first proviso to sub-section (5) of section 80G'. This section code is related to application for renewal of regular approval for a trust/ institution which is having regular approval u/s 80G(5) (vi) of the Act.
3.1 With a view to verify the genuineness of the activities of the assessee and fulfillment of conditions laid down in clause (i) to (v) of section 80G(5) of the Act, a notice was issued through ITBA portal on 04.06.2024 requesting the assessee to upload certain information / clarification. The assessee was requested to submit the compliance by 19.06.2024. Since the assessee did not furnish compliance to the said notice, another notice was given on 16.08.2024 seeking compliance by 23.08.2024. On verification of the details submitted by the assessee, the Ld. CIT(E) observed that the assessee has obtained regular approval u/s 80G(5)(vi) of the Act under clause (i) of first proviso to section 80G(5) of the Act on 02.10.2021 but the assessee was not approved u/s 80G(5)(vi) of the Act prior to 01.04.2021 since the copy of such approval was neither attached with the original application while applying for such approval nor during the present proceedings. Therefore, the regular approval found to be invalid. The assessee thereafter was requested vide notice dated 25.09.2024 to show cause as to why the application should not be rejected and why the approval granted u/s 80G should not be cancelled. In absence of any reply from the side of the assessee by the due date i.e. 03.10.2024, the Ld. CIT(E) rejected the application filed by the assessee for grant of approval u/s 80G of the Act treating the same as non-maintainable without going into the merits of the case by observing as under: “5. It is clear from the above that the assessee was given sufficient opportunity to comply, but it has not submitted any compliance. It seems that the assessee is not having any supporting documents/ evidence to submit. 5.1 The regular approval obtained by the assessee is found to be invalid since the assessee was not approved under section 80G(5)(vi) of the Act prior to 01/04/2021. The pre-requisite for application under clause (ii) of first proviso to section 80G(5) of the Act is not fulfilled in this case.
6. In view of the above, the application filed by the assessee is treated as non- maintainable and hence, 'rejected' for statistical purposes without going into the merits of the case and no adverse inference is drawn against the assessee.”
Aggrieved with such order of Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds: “1. The assessee prays to condone the delay of 60 days in filing the present appeal for the reasons beyond its control. The assessee begs to submit an affidavit at the time of hearing.
On the basis of facts and in the circumstances of the case and as per law, the Commissioner of Income Tax, (Exemptions) Pune, is not justified in rejecting the approval on the basis of non-submission of documents like regular approval by the assessee. The application should have been filed u/c (iii) of the proviso to sec 80G(5)(vi) as against inadvertently / by mistake the assessee sought approval u/c (ii) of the proviso to sec 80G(5)(vi). The application for registration u/s 80G(5)(ii) be restored by setting aside his order dt 04/10/2024.
3. The appellant craves leave to add, alter, omit or substitute any of the grounds at the time of hearing of the appeal.”
He submitted that the assessee failed to make compliance before the Ld. CIT(A) on account of certain unavoidable circumstances and that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. CIT(E). He accordingly submitted that in the interest of justice, the impugned issue may be set aside to the Ld. CIT(E) for fresh adjudication after affording an opportunity of being heard to the assessee.
The Ld. DR, on the other hand, heavily relied on the order of Ld. CIT(E) and submitted that the Ld. CIT(E) afforded adequate opportunities to the assessee but the assessee still chose not to comply with the notices issues by the Ld. CIT(E) and therefore he was completely justified in rejecting the assessee’s application.
We have heard the rival arguments made by both the sides and perused the order of the Ld. CIT(E). It is an admitted fact that despite sufficient opportunities granted by the Ld. CIT(E), the assessee did not respond to the notice(s) issued by the Ld. CIT(E). He therefore rejected the application for grant of approval u/s 80G of the Act for the reasons recorded in the preceding paragraph. It is the submission of the Ld. Counsel for the assessee that non- compliance before the Ld. CIT(E) was not intentional but was on account of certain circumstances beyond the control of the assessee. It is also his submission that given an opportunity, the assessee is in a position to present and substantiate its case by filing the requisite details before the Ld. CIT(E) to his satisfaction.
Considering the totality of facts and in the circumstances of the case, enumerated above, we deem it fit and proper, in the interest of justice, to restore the impugned issue, to the file of the Ld. CIT(E) with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details to his satisfaction and decide the issue afresh as per fact and law. The assessee is also hereby directed to remain vigilant and submit the details as may be required/called upon by the Ld. CIT(E) on the appointed date without seeking any adjournment under any pretext unless for the sufficient cause, failing which the Ld. CIT(E) shall be at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 30th June, 2025.