Scon Pro Foundation Vs CIT (ITAT Pune)
80G renewal can’t be rejected for “impossible” delay: ITAT Pune remands matter to CIT(E)
Pune ITAT set aside the rejection of 80G(5) renewal and remanded the matter for fresh consideration, holding that the assessee could not be penalised for a delay which was practically impossible to avoid.
The Assessee-trust had filed Form 10AB on 31-12-2024 seeking renewal of approval u/s 80G(5). The CIT(E) rejected the application on the ground that it was filed 90 days late, as renewal ought to have been sought six months prior to expiry of the existing approval (i.e., on or before 30-09-2024).
Before the Tribunal, the Assessee demonstrated that its regular 80G approval itself was granted only on 21-11-2024, valid up to 31-03-2025, making it impossible to apply for renewal before 30-09-2024. Relying on the coordinate Bench decision in R. L. Education Sanstha vs. CIT(E), the ITAT held that the CIT(E) had misapplied the provisos to section 80G(5) and adopted an unduly technical approach.
The Tribunal observed that where the statute requires an act which is factually impossible, the assessee cannot be faulted. Accordingly, the order of the CIT(E) was set aside, and the matter was remanded with a direction to decide the 80G renewal application afresh on merits, after granting reasonable opportunity to the Assessee.
The appeal was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT PUNE
