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Facts
The assessee filed an application for registration under Section 80G(5) of the Income Tax Act, 1961. The CIT(E) rejected the application as the assessee failed to provide required documents by the due date, citing a technical error on the income tax portal that prevented their adjournment request from being processed.
Held
The Tribunal set aside the order of the CIT(E) and remanded the matter for fresh adjudication. The CIT(E) was directed to provide the assessee with an opportunity to present necessary details.
Key Issues
Whether the rejection of the 80G(5) application due to a technical glitch on the income tax portal, preventing an adjournment request, violates natural justice and whether the matter should be remanded for fresh consideration.
Sections Cited
80G, 80G(5), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B” :: PUNE
Before: MS.ASTHA CHANDRA & DR.DIPAK P. RIPOTE
ORDER
PER DR. DIPAK P. RIPOTE, AM:
This appeal filed by the assessee is directed against the order of ld.Commissioner of Income Tax(Exemption), Pune passed under section 80G of the Income Tax Act, 1961 dated 01.04.2025. The Assessee has raised the following grounds of appeal :
1. That the Learned CIT (Exemption) erred in law and facts in rejecting the application under section 80G(5) before the intended due date for submission of documents, ignoring the appellant's bona fide effort to seek an adjournment.
ITA No.1208/PUN/2025 [A]
That the rejection order is in violation of natural justice, as the appellant was not granted effective opportunity to be heard due to technical failure beyond its control 3. That the appellant has been actively engaged in charitable activities and is fully compliant with the conditions prescribed under section 80G(5) of the Act. 4. That the learned CIT (Exemption) failed to recognize the genuine intent of the appellant and should have taken a liberal and constructive view, especially in light of technical platform limitations. 5. That the order is non-speaking in nature and lacks detailed reasoning for rejecting the appellant's claims and activities despite initial documentation and the appellant's expressed intent to comply. 6. That the denial of 80G registration adversely affects the trust's ability to raise donations and thereby hampers its charitable activities aimed at public welfare 7. That the appellant respectfully prays that the matter be restored back to the CIT (Exemption), Pune for fresh consideration after granting a reasonable opportunity to furnish all required documents. 8. The appellant craves leave to add, amend, alter or withdraw any ground of appeal
at the time of hearing.” 1.1 Statement of facts submitted by the Assessee are as under : “In response to the notice dated 18/03/2025, the appellant submitted a formal adjournment request on income tax portal for extension of time till 09/04/2025 to gather and submit the requisite data. The appellant was under a bona fide belief that the submission could be made till 09/04/2025 based on the intended adjournment timeline based on the request submitted however Due to a technical error on the income tax portal, the adjournment request could not be successfully processed.” Findings & Analysis :
2. We have heard both the parties and perused the records. In this case, ld.CIT(E) has rejected the application filed by the [A] Assessee u/s.80G(5) of the Act. The relevant Paragraph 8 of the order is reproduced here as under : “8. It is clear that the assessee was given sufficient opportunity to comply, but it has failed to comply. It seems that the assessee is not having any supporting documents / evidence to submit. The assessee has failed to comply with the provisions of sub-clause (a) of clause (ii) of second proviso to section 80G(5) of the Income Tax Act, 1961 and hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and fulfilment of conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act and has left no alternative but to reject the application." 2.1 Ld.AR submitted that Assessee is duly registered u/s.12AB of the Act, vide order dated October, 2024. Ld.AR further submitted that in response to notice dated 18.03.2025 issued by the ld.CIT(E), Assessee had filed a request for adjournment on the Income Tax Portal. However, due to technical error, it seems that the adjournment petition was not noticed by ld.CIT(E) and passed the order on 01.04.2025. Ld.AR further submitted that Assessee had carried out Charitable Activities like organising Blood Donation Camp. The note on Blood Donation Camp was submitted to the ld.CIT(E). However, ld.CIT(E) wanted details of beneficiaries. However, Assessee could not file the details before the ld.CIT(E). In these facts and circumstances of the case, in the interest of justice, we set-aside the order of ld.CIT(E) passed u/s.80G(5) of the Act, to ld.CIT(E) for denovo adjudication. Ld.CIT(E) shall provide ITA No.1208/PUN/2025 [A] opportunity to the Assessee. Assessee shall file necessary details before the ld.CIT(E). Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 16 June, 2025.