Case Law Details
Bipin Biharidas Charitable Foundation Vs CIT (ITAT Ahmedabad)
The case of Bipin Biharidas Charitable Foundation v. CIT (ITAT Ahmedabad) revolves around the rejection of the assessee’s application for approval under Section 80G(5) of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemption), Ahmedabad.
The appellant, a charitable foundation, had filed an application seeking approval under Section 80G(5) of the Act. However, the application was rejected by the Commissioner solely on the basis that it was filed under Section 80G(5)(ii) instead of Section 80G(5)(iii) of the Act. The appellant had already been granted provisional approval under Clause (iv) of the First Proviso to Section 80G(5) of the Act for the period from Assessment Year (A.Y.) 2021-22 to A.Y. 2024-25.
Challenging the Commissioner’s decision, the appellant raised several grounds of appeal. The crux of their argument was that the rejection solely based on a procedural error of filing the application under the wrong clause should not invalidate their eligibility for approval under Section 80G(5)(iii). They argued that the Commissioner should have considered the substantive eligibility of the trust for such approval despite the procedural lapse.
During the appeal hearing, the appellant’s counsel argued that the procedural error should have been condoned by the Commissioner, especially considering the eligibility of the appellant for final registration. The counsel cited a judgment from the Kolkata Bench in support of their argument.
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