Akhil Anjana Kelavani Mandal Vs CIT( (Exemption) (ITAT Ahmedabad)
ITAT Ahmedabad: Clerical Error in Selecting Wrong Clause Cannot Deny 80G Approval – Matter Restored to CIT(E) for Fresh Decision
Ahmedabad Tribunal dealt with rejection of a charitable trust’s application for approval u/s 80G(5) on the basis of a mere technical mistake.
Assessee-trust had filed an application seeking approval u/s 80G(5). However, in the prescribed form, it inadvertently selected clause (iv) instead of the relevant clause (ii). CIT(E), treating this as a fatal defect, rejected the application on 20.08.2024 without examining the merits. On appeal, there was a 109-day delay which was condoned by Tribunal based on the affidavit of the trustee.
Before Tribunal, it was argued that the error was only clerical, and the intent of the application was clear from its contents. The confusion had arisen due to multiple recent amendments in section 80G and related rules, creating difficulties even for professionals and authorities. CBDT itself had issued clarificatory circulars to remove such confusion. Hence, outright rejection was unjustified.
Tribunal’s Findings:
- The error in choosing the wrong clause was a technical mistake and did not change the substance of the application.
- If the assessee’s intent was apparent from the contents, the application should have been treated as filed under the correct clause.
- CIT(E) acted unjustly in rejecting the application instead of examining it on merits.
The impugned order was set aside. Tribunal directed that the application be treated as filed under clause (ii) of the first proviso to section 80G(5) and decided afresh on merits. CIT(E) was instructed to pass a fresh order within 90 days of receiving the ITAT’s directions.
