INDIAN CULTURE ORG,THANJAVUR vs. CIT EXEMPTIONS, CHENNAI
What did the Tribunal hold?
The Tribunal held that the rejection on a technical ground was not appropriate. The assessee should have been given an opportunity to rectify the error in selecting the clause.
What were the facts?
The assessee's application for registration under Section 80G(5) was rejected because they filed under the wrong clause. They had provisional registration but applied under clause (ii) instead of clause (iii).
What were the issues?
Whether an application for registration under Section 80G(5) can be rejected on a technical ground without providing an opportunity to rectify the error.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, CHENNAI
Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकर अपीलीय अिधकरण “ए” �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय �ी महावीर िसंह, उपा ! एवं माननीय �ी मनोज कुमार अ%वाल ,लेखा सद( के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ Indian Culture Org CIT (Exemption) 7/445, Gurumurthy Nagar, Chennai. बनाम/ Vellalar Street, Thepperumanallur, Vs. Thiruvidaimadrudur TK Thanjavur – 612 103. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AABTI-9257-J (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri Girish Kumar (Advocate)- Ld.AR � थ�कीओरसे/Respondent by : Shri Nilay Baran Som (CIT) -Ld.DR सुनवाईकीतारीख/Date of Hearing : 24-06-2024 घोषणाकीतारीख /Date of Pronouncement : 03-07-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aggrieved by rejection of an application filed in Form No.10AB seeking registration under clause (ii) of first proviso to Sec.80G(5) vide impugned order dated 07.03.2024, the assessee is in further appeal before us. Upon perusal of para-3.2 of impugned order, it could be seen that the application has been rejected in view of the fact that the assessee was having provisional registration and it had filed application under clause (ii) to first proviso to Sec.80G(5) whereas it ought to have applied under clause (iii) which is applicable for provisionally registered entity. Consequently, the provisional registration was also cancelled as per statutory provisions. Aggrieved, the assessee is in further appeal before us.
We are of the considered opinion that the application ought not to be rejected on mere technical grounds. The wrong selection of clause may be due to an inadvertent error and the same may be in view of the fact that new regime of registration of trust was brought in place very recently. The applicant ought to have been granted an opportunity to rectify the error. Therefore, we direct Ld. CIT(E) to grant an opportunity to the assessee to rectify the mistake and thereafter, proceed for disposal of application on merits after affording reasonable opportunity of hearing to the assessee. The assessee is directed to substantiate the same. 3. The appeal stand allowed for statistical purposes. Order pronounced on 3rd July, 2024 Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा45 / VICE PRESIDENT लेखा सद7 / ACCOUNTANT MEMBER चे9ई Chennai; िदनांक Dated :03-07-2024 DS आदेशकीHितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयुA/CIT Chennai. 4. िवभागीय�ितिनिध/DR 5. गाडFफाईल/GF
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