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Facts
The assessee-trust's application for approval under Section 80G(5)(iv)(B) of the Income Tax Act was rejected by the Ld.CIT(E). The appeal was filed late due to the assessee claiming the notice was not received and a mistake in mentioning the wrong sub-clause. The assessee claimed to be engaged in genuine charitable activities.
Held
The Tribunal condoned the delay in filing the appeal, acknowledging the complexity of the provisions. The Tribunal directed that the assessee's application be treated as moved under the correct clause (iii) of the first proviso to Section 80G(5) and restored the matter to the Ld.CIT(E) for a fresh decision after providing the assessee an adequate opportunity to present its case.
Key Issues
Whether the delay in filing the appeal should be condoned and whether the application for approval under Section 80G should be considered under the correct clause despite an inadvertent mention of a wrong clause.
Sections Cited
80G(5), 80G(5)(iv)(B), 80G(5)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Makarand V. Mahadeokar
Per Sanjay Garg, Judicial Member:
The captioned appeal has been preferred by the assessee-trust against the order of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘Ld.CIT(E)’] dated 16/12/2024, rejecting the application of the assessee for approval under sub-clause(B) of clause (iv) of first proviso to sub-section (5) of Section 80G of the Income Tax, Act 1961 (hereinafter referred to as “the Act”).
The appeal of the assessee is time-barred by 82 days. A separate application for condonation of delay has been filed.
At the outset, the Ld. AR of the assessee has submitted that the Ld.CIT(E) has dismissed the application of the assessee for final approval u/s.80(G)(5)(iv)(B) of the Act, as the assessee could not furnish the necessary details as required by the Ld.CIT(E). The Ld.AR has further submitted that the notices issued by the Ld.CIT(E) did not come to the notice of the key- person of the assessee-trust and, hence, the compliances could not be made. The Ld.AR has submitted that the assessee-trust is engaged in charitable activities and that its activities are genuine. Further, the Ld.AR of the assessee has submitted that due to complexity of the provisions, the assessee had wrongly mentioned sub-clause B of clause (iv) of first proviso to section 80G(5) of the Act instead of clause (iii) of first proviso to section 80G(5) of the Act, He has further submitted that even the impugned order of the Ld.CIT(E) was not served physically and, hence, did not come to the notice of the assessee-trust. He, therefore, has submitted that the delay in filing the present appeal may be condoned and let the assessee-trust may be given an opportunity to present its cases before the Ld.CIT(E).
The Ld.Departmental Representative (DR), however, relied upon the findings of the Ld.CIT(E).
Considering the rival submissions, in our view, the interests of justice will be well-served, if the assessee is given an opportunity to present its case before the Ld.CIT(E). Therefore, the delay in filing the appeal is hereby condoned. It is also noted that due to complexity of the provisions, several instances of mentioning of wrong clause have occurred, to which, the Foram Foundation vs. CIT (E)
3 Tribunal has time and again directed to the Ld.CIT(E) to treat the same under the relevant/appropriate clause/section. It is, accordingly, directed that the application of the assessee pertaining to the approval u/s. 80G(5) of the Act will be read and treated to have been moved under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, irrespective of the fact that the assessee has mentioned any other clause inadvertently in the application form. The ld. CIT(E) will consider and decide the said application in accordance of law. In view of this, the impugned order of the Ld.CIT(E) is hereby set aside and the matter is restored to the file of Ld.CIT(E) for decision afresh. Needless to say, that the Ld.CIT(E) will give proper and adequate opportunity to the assessee to present its case and thereafter to decide the same in accordance with law. It is also directed that the assessee will take due care of the informing the email/notices issued by the Ld.CIT(E) and will promptly appear and furnish the necessary details as and when called for by the Ld.CIT(E).
With the above observations, the appeal of the assessee is treated as allowed for statistical purposes.
Order pronounced in the Open Court on 17 /10/2025. (Makarand V. Mahadeokar) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 17/10/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT आयकर आयु' अपील
( ) / The CIT(A)- (NFAC), Delhi 5. िवभागीय #ितिनिध आयकर अपीलीय अिधकरण अहमदाबाद /DR,ITAT, Ahmedabad. , , 6. गाड" फाईल / Guard file.
आदेशानुसार/ BY ORDER, स&ािपत #ित ////
सहायक पंजीकार (Asstt.