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Facts
The assessee, a trust providing medical and health services, filed an application for approval under Section 80G(5) of the Income-tax Act. The CIT(E) rejected the application because the assessee failed to submit a copy of the order of registration issued by CPC, Bengaluru in Form No. 10AC before the due date.
Held
The Tribunal noted that the assessee had obtained Form No. 10AC but could not submit it by the deadline due to the auditor's ill health. The Tribunal opined that the assessee should be given another opportunity to submit the required document.
Key Issues
Whether the CIT(E) was justified in rejecting the application for registration due to non-submission of Form 10AC by the deadline, and if an opportunity should be granted to the assessee.
Sections Cited
80G(5)(iii), 80G(5)
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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by assessee is against the order of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 01.08.2024 rejecting the application filed by the assessee in Form No.10AB u/s. 80G(5)(iii) of the Income-tax Act, 1961 (hereinafter “the Act”) seeking approval u/s. 80G(5) of the Act.
The assessee is a trust doing medical and health services to all permanent and temporary residents of Kodaikanal and surrounding areas. The assessee has filed application on 12.02.2024 in Form No.10AB u/s. 80G(5)(iii) seeking approval u/s. 80G(5) of the Act. The Ld. CIT(E) has rejected the application on the ground that it has failed to furnish copy of order of registration issued by CPC, Bengaluru in Form No.10AC before 17.07.2024. The assessee before us has submitted that the order of registration issued by CPC, Bengaluru in Form No. 10AC was obtained on 24.09.2021, but due to the ill health of the assessee's auditor, the copy of the order of registration could not be filed before the deadline of 17.07.2024 as mentioned in the notice.
We have heard the rival submissions. The Ld. CIT(E) has rejected the application in form 10AB u/s 80G(5)(iii) on the ground that assessee has not submitted copy of order of registration issued by CPC in Form No 10AC. The Ld. AR has submitted that assessee has obtained Form No 10AC issued by CPC on 24.09.2021, but could not submit as the auditor was sick. We are of opinion that assessee should be given one more opportunity to submit the Form 10AC and therefore set aside the order of Ld. CIT(E). Accordingly, the Ld.
CIT(E) is directed to reconsider the application for registration, after considering the Form 10AC and Form 10AB submitted by the assessee.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 27th December, 2024.