ADVAYA CHARITABLE FOUNDATION (NOW BTG ADVAYA CHARITABLE FOUNDATION),MUMBAI vs. CIT(EXEMPTIONS), MUMBAI , MUMBAI

Facts

The assessee, Advaya Charitable Foundation, filed an application for registration under Section 12AB of the Income Tax Act, 1961, but it was rejected by the CIT(E) due to a delay in filing. The assessee contended that the delay was due to a bona fide oversight by their tax consultant and that they had inadvertently selected the wrong section code for their application. The appeals were heard together as the issues were common.

Held

The Tribunal held that while the application was indeed filed beyond the prescribed time limit, the delay was not deliberate and was due to a bonafide mistake. The Tribunal noted that the legislature has introduced a proviso allowing CIT(E) to condone delays if reasonable cause is shown. Therefore, the matter was restored to the CIT(E) for fresh consideration, allowing the assessee to file a condonation application.

Key Issues

The primary issue was whether the delay in filing the application for registration under Section 12AB of the Income Tax Act, 1961, should be condoned. A secondary issue was whether the rejection of the application for approval under Section 80G was justified.