SUNIL TIBREWAL FOUNDATION,BHIWANDI, THANE vs. CIT (EXEMPTIONS), PUNE, PUNE

ITA 3520/MUM/2023Status: DisposedITAT Mumbai28 February 2024AY 2023-246 pages
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What did the Tribunal hold?

The Tribunal decided to condone the delay in filing the appeal, finding that the reasons provided by the assessee, including the inadvertent selection of an incorrect section code and the subsequent procedural issues, fell within the parameters for condonation as laid down by the Supreme Court in Collector Land Acquisition, Anantnag Vs. MST Katiji and others. The Tribunal emphasized that procedural rules are subservient to substantial justice and that the assessee did not benefit from the delay. Regarding the substantive issue of 80G approval, the Tribunal noted that a coordinate bench of the Tribunal in the assessee's own case (ITA No. 3485/Mum/2023) had restored the application for regular registration under section 12AB to the file of the CIT(E) due to a lack of proper notice. Following this precedent, the Tribunal set aside the impugned order of the CIT(E) and restored the assessee's application for approval under section 80G to the file of the CIT(E) for fresh consideration after the decision on the 12AB application. The CIT(E) was directed to pass an order in accordance with the law after affording a reasonable opportunity of being heard to the assessee. The grounds raised by the assessee were allowed for statistical purposes.

What were the facts?

The assessee, Sunil Tibrewal Foundation, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai, challenging an order dated 29/03/2023 passed by the Commissioner of Income Tax (Exemptions), Pune (CIT(E)). The appeal was filed with a delay of 128 days. The assessee explained the delay by stating that an incorrect section code was selected in the application for registration under section 12A of the Income Tax Act, 1961. This led to the rejection of both the 12A registration application and the application for approval under section 80G. The assessee also relied on a CBDT circular extending due dates for such applications and representations made to the CBDT. The ITAT condoned the delay, finding sufficient cause. The primary grievance was the denial of registration under section 80G.

What were the issues?

1. Whether the delay in filing the appeal should be condoned, considering the reasons provided by the assessee regarding procedural errors and ongoing communications with the CBDT. (Question of fact) Assessee's arguments: - The delay was due to an inadvertent selection of an incorrect section code for the 12A registration application, which subsequently impacted the 80G approval. - The e-filing portal lacked functionality to re-apply for 80G approval upon rejection, unlike the previous regime. - Representations were made to the CBDT regarding the new provisions and the need for re-application functionality. - Condonation of delay is necessary to avoid hardship to donors seeking deduction under section 80G for donations made during FY 2022-23. - The delay was not wilful or deliberate, and the appeal documents are bonafide. - Relied on the principles laid down in Collector Land Acquisition, Anantnag Vs. MST Katiji and others for condonation of delay. Revenue's arguments: - No specific arguments are recorded in the judgment regarding the delay.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12A,Section 12AB,Section 10(23C),Section 11(7)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G BENCH, MUMBAI

Before: SHRI B.R. BASKARAN & SHRI SANDEEP SINGH KARHAIL

For Appellant: Ms. Anushree Gupta
For Respondent: Shri Dr. Kishor Dhule

PER SANDEEP SINGH KARHAIL, J.M.

The present appeal has been filed by the assessee challenging the impugned order dated 29/03/2023 passed under section 80G(5) of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Exemptions), Pune

[“learned CIT(E)"].

Sunil Tibrewal Foundation

2.

The present appeal is delayed by 128 days. Along with the appeal the assessee has filed an application seeking condonation of delay in filing the present appeal duly supported by the affidavit of the trustee. In the aforesa

The order continues below.

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