Mansi Bhagini Vrund Vs ITO (ITAT Mumbai)
Delay in Form 10AB Not Fatal – ITAT Favors Substantive Justice in U/s 80G Approval
The ITAT Mumbai held that delay in filing Form 10AB for final 80G approval cannot be the sole ground for rejection, especially when the trust is otherwise genuinely carrying out charitable activities.
In this case, the assessee trust filed the application for regular 80G approval with a delay of more than 20 months due to a bona fide misunderstanding regarding the validity period of provisional approval. The CIT(E) rejected the application strictly on limitation, relying on Supreme Court rulings emphasizing strict compliance for exemptions.
However, the Tribunal took a purposive view and observed that Section 80G is a beneficial provision intended to promote charitable activities, and procedural lapses should not defeat substantive rights. It noted that the trust’s activities were not doubted and that CBDT itself has, in similar contexts, relaxed timelines to mitigate genuine hardship.
Distinguishing stricter rulings like Wipro Ltd., the Tribunal held that such decisions cannot be mechanically applied where public interest and charitable objectives are involved. It emphasized that a harmonious and liberal interpretation is required in such cases.
Accordingly, the matter was restored to the CIT(E) with directions to condone the delay and examine the application on merits.
Procedural delay in 80G approval filings cannot override genuine charitable activity-substance prevails over technicality.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
