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Facts
The assessee trust filed an appeal against the order of CIT(E) rejecting their application for final/regular approval under Section 80G(5) due to a technical/clerical error in selecting the wrong clause. There was a delay of 135 days in filing the appeal, which was condoned.
Held
The Tribunal held that the CIT(E) was not justified in rejecting the application based on a technical error, especially considering recent amendments causing confusion. The Tribunal set aside the order and directed the CIT(E) to treat the application as moved under the correct clause and decide it within 90 days.
Key Issues
Whether a technical/clerical error in selecting a clause in an application for approval under Section 80G(5) justifies rejection, especially in light of recent amendments and potential confusion.
Sections Cited
80G(5)
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Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Smt. Annapurna Gupta
"ी संजय गग", "ाियक सद" एवं "ीमित अ"पूण" गु"ा, लेखा सद" के सम&। ] ] Before Shri Sanjay Garg, Judicial Member And Smt. Annapurna Gupta, Accountant Member आयकर अपील सं /ITA No.1081/Ahd/2025 िनधा"रण वष" /Assessment Year : - Shree Maharani Shantadevi The CIT (Exemption) बनाम/ Trust Ahmedabad – 380 015 v/s. C/o. Devsthan Trust Khanderao Mandir R.V. Desai Road Vadodara – 390 001 "थायी लेखा सं./PAN: AABTS 2284 D (अपीलाथ)/ Appellant) (*+ यथ)/ Respondent) Assessee by : Shri Viranch Modi, CA Revenue by : Shri Rignesh Das, CIT-DR सुनवाई की तारीख/Date of Hearing : 08/09/2025 घोषणा की तारीख /Date of Pronouncement: 15/09/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘CIT(E)’] dated 18/10/2024, rejecting the application for final/regular approval u/s.80G(5) of the Income Tax, 1961 (hereinafter referred to as ‘the Act’).
There is a delay of 135 days in filing the present appeal. An Affidavit of Trustee of the appellant has been filed for condonation of delay. Shree Maharani Shantadevi Trust vs. CIT(E)
2 Considering the averments made in the affidavit, the delay in filing the appeal is hereby condoned.
At the outset, it has been brought to our knowledge that the ld. CIT(E) has rejected the application of the assessee due to technical/clerical error while mentioning/marking the relevant clause/code in the application form. The CIT(E) has mentioned that in relation to application moved for regular registration u/s. 80G(5) of the Income Tax Act, the assessee was required was to choose/select clause (iii) of first proviso to sub-section (5) of section 80G of the Act, whereas, the assessee had selected clause (ii) of first proviso to sub-section (5) of section 80G of the Act in the prescribed Form 10AB.
A perusal of the impugned order of the ld. CIT(E) would reveal that the CIT(E) was well aware that the concerned assessee had been granted provisional approval u/s. 80G(5) of the Act and that the present application was moved by the assessee for grant of final/regular approval u/s. 80G(5) of the Income Tax Act. It is pertinent to mention here that due to several recent amendments in the relevant provisions of the section 80G of the Income Tax Act, a confusion relating to the various clauses of the relevant sections and prescribed forms have occurred not only amongst the assessees but also amongst professionals/tax practitioners as well as the income tax authorities. Even the CBDT has also issued clarificatory circulars. Due to the complexity of the provisions, if an inadvertent mistake had occurred in the application from furnished by the assessee while selecting the relevant code/column in the prescribed application form, but at the same time, the said mistake was apparent from the contents of the application and it was apparent that the said application has been made by the assessee for final/regular registrations under the relevant provisions of section 80G of Shree Maharani Shantadevi Trust vs. CIT(E) the Act, the Ld. CIT(E), in our view, was not justified in rejecting such application. In view of this, the impugned order of the CIT(E) in the captioned appeal is set aside. It is 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 within a period of 90 days from the date of receipt of copy of this order.
With the above observations, the appeal of the assessee is treated as allowed for statistical purposes.