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Facts
The assessee applied for registration under section 80G of the Act by filing Form 10AB. The CIT(Exemption) rejected the application due to the belated filing of Form 10AB and also because the assessee had selected the wrong section code. The assessee contended that no opportunity was given to explain the delay.
Held
The Tribunal held that when an authority has the power to grant registration, it also has the power to condone delay. It is a principle of natural justice to grant an opportunity of being heard before rejecting an application on grounds of delay. Therefore, the matter should be restored to the CIT(E) for granting the assessee an adequate opportunity to explain the delay and file the correct form.
Key Issues
Whether the application for registration under section 80G can be rejected solely on the ground of delay without affording an opportunity to the assessee to explain the delay, and whether the assessee should be allowed to file the correct form and re-adjudicate the issue.
Sections Cited
80G
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
(नििाारण वर्ा / Assessment Year : 2024-2025) Project Swarajya, Vs CIT(Exemption), Hyderabad Ganesh ghat, Chandini Chowk, Bhakhrabad, Cuttack-753002 PAN No. : AAATP 3816 F (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Ananta Narayan Singhbabu, Adv. राजस्व की ओर से /Revenue by : Shri Ashim Kumar Chakraborty, CIT-DR सुनवाई की तारीख / Date of Hearing : 14/08/2025 घोषणा की तारीख/Date of Pronouncement : 14/08/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order, dated 25.06.2025 passed by the ld. CIT(Exemption), Hyderabad for the assessment year 2024-2025, thereby rejecting the assessee’s claim for registration u/s.80G of the Act.
It was submitted by the ld. AR that the assessee had applied in Form 10AB seeking registration u/s.80G of the Act. It was the submission that the ld.CIT(E) has rejected the application for registration on account of delay in filing Form 10AB. It was the submission that no opportunity was granted to the assessee to explain the delay. It was the prayer that the issues may be restored to the file of ld. CIT(E) so that the assessee could explain the delay.
3. In reply, ld.CIT-DR vehemently supported the order of the ld. CIT(E).
We have considered the rival submissions. A perusal of the facts of the present case clearly shows that the assessee has filed application for registration u/s.80G of the Act, which was rejected by the ld. CIT(E) on account of filing of form 10AB belatedly. A further perusal of the order of the ld. CIT(E) shows that the assessee had to apply Form 10A by selecting the section code 80G(5)(i) instead of 80G(5)(iv) of the Act for which the ld. CIT(E) has rejected the application of the assessee treating the same as non-maintainable. Admittedly, the assessee has filed the application belatedly. When the power for granting the registration is available with an authority, the power to condone the delay in filing the application is also available with the authority. This is a part of principle of natural justice and judicial jurisprudence. Before rejecting an application for registration on account of delay, it would be worthwhile to grant the assessee an opportunity of being heard. This being so, in the interest of justice, the issues in this appeal in respect of grant of registration u/s.80G of the Act is restored to the file of ld. CIT(E) for granting the assessee adequate opportunity to explain the delay in filing the application for regular registration u/s.80G of the Act. It is also directed that the ld.CIT(E) shall grant the assessee sufficient opportunity to file the correct form under the correct second code and readjudicate the issue afresh.