VEERAPPAN SANKARAMMAL CHARITABLE TRUST,NAMAKKAL vs. CIT EXEMPTIONS, CHENNAI

Aggrieved by rejection of application filed in Form No.10AB on 23.09.2023 for seeking renewal of recognition under clause (ii) of first proviso to sub-section (5) of Sec.80G vide impugned order dated 07.03.2024, the assessee is in further appeal before us. It has been stated that the application was rejected on the ground that the assessee ought to have applied under clause (iii) of first proviso to Sec.80G(5) but it wrongly applied under clause (ii).

As is evident, the assessee was been granted provisional approval from 24.09.2021 to AY 2024-25. The Ld. CIT(E) held that application filed under Clause (ii) would not be maintainable since the application was to be filed in Clause (iii) in assessee’s case. Aggrieved, the assessee is in further appeal before us.

We find that the application has been rejected merely on technical ground. It is clear that the assessee had obtained provisional approval and it sought permanent registration. By inadvertent mistake, the assessee preferred application under wrong Clause (ii) instead of Clause (iii). The assessee ought to have been granted an opportunity to rectify the same. Nevertheless, we direct Ld. CIT(E) to provide an opportunity to the assessee to rectify the application and consider the same on merits. The assessee is directed to substantiate its application.

In the result, appeal stand allowed for statistical purposes. Order pronounced in the open court on 26th June, 2024 at Chennai. Sd/- Sd/- (मनु कुमार िग�र) (एस. आर. रघुनाथा) (MANU KUMAR GIRI) (S. R. RAGHUNATHA) �ाियक सद�/Judicial Member लेखासद�/Accountant Member चे�ई/Chennai, �दनांक/Dated, the 26th June, 2024 JPV आदेश की �ितिलिप अ�ेिषत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3.आयकर आयु�/CIT– Chennai 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF