Akhil Bhartiya Adhivakta Parishad Vs CIT (Exemption) (ITAT Delhi)
The appeal was filed by the assessee against the order of the Commissioner of Income Tax (Exemption), Delhi dated 27.08.2024 rejecting its application for approval under Section 80G of the Income Tax Act, 1961. The assessee, a non-profit society, had filed an application in Form No. 10AB on 26.02.2024 seeking approval under Section 80G(5). During the proceedings, the Commissioner issued notices calling for information and, after examining the application, observed that the assessee had filed the application under sub-clause (B) of clause (iv) of the first proviso to Section 80G(5), which was not applicable to its case. Although the assessee submitted replies and information, the Commissioner rejected the application on that ground without examining the merits of the claim or verifying the activities of the society.
Before the Tribunal, the assessee contended that the rejection was based solely on a technical error, namely the inadvertent filing of the application under the wrong provision. It was submitted that there was no deliberate or wilful intention to file under an incorrect clause and that the matter should be restored to the Commissioner with a direction to treat the original application as one filed under clause (iii) of the first proviso to Section 80G(5). The Revenue supported the order of the Commissioner.
