Aatma Prakash Mental Health Foundation Vs CIT (Exemption) (ITAT Indore)
ITAT Indore Sets Aside Multiple 12A/12AB and 80G Rejections
The ITAT Indore disposed of a batch of 50 appeals filed by charitable trusts and institutions whose applications for registration or renewal under Section 12A/12AB and/or approval under Section 80G(5) of the Income Tax Act, 1961 had been rejected by the CIT(Exemption). The appeals involved similar grounds and factual circumstances and were heard together. Delays in three appeals were also condoned after considering the reasons stated and the charitable activities of the assessees. Ultimately, all the appeals were allowed for statistical purposes.
Wrong Selection of Sub-Clause Treated as Curable Defect
In several cases, applications were rejected because the assessees had selected an incorrect statutory sub-clause in the electronic application. The assessees submitted that these were inadvertent technical errors and that they had not been given an opportunity to rectify them.
The Tribunal held that the incorrect selection was a curable procedural defect where the application had been rejected solely for that reason and the CIT(E) had not examined the trust’s objects, genuineness of activities or other statutory requirements. It set aside the relevant orders and restored the matters to the CIT(E), directing that the assessees be permitted to rectify the defect, if permissible, or file an appropriate application under the correct provision and have the applications examined afresh after adequate opportunity of hearing. Where a fresh application was required, the CIT(E) was directed to condone the delay in filing it. These appeals were allowed for statistical purposes.
