Gandhinagar Ayyapa Pooja Samiti Vs CIT (ITAT Ahmedabad)
ITAT Ahmedabad held that rejection of final approval u/s. 80G(5) of the Income Tax Act merely for an inadvertent mistake of mentioning incorrect Sub-Clause in the application is untenable. Accordingly, CIT(E) directed to consider the application and pass order accordingly.
Facts- The present appeal has been filed by the assessee against order passed by the Commissioner of Income Tax (Exemption), Ahmedabad, dated 20.08.2024, denying grant of approval u/s. 80G(5) of the Income Tax Act, 1961. The assessee contended that his solitary contention against the order passed by the Ld. CIT(E) rejecting assessee’s application seeking approval u/s.80G(5) of the Act, was that the assessee had inadvertently mentioned the incorrect clause of Section 80G(5) in which the application was filed and though all the facts were, therefore, on record before the Ld. CIT(E) which revealed that the assessee’s application should have been rightly made in another clause 80G(5) of the Act, he however, rejected the assessee’s application stating that the application was made under an incorrect clause of Section 80G(5) of the Act.
Conclusion- Held that the assessee’s application seeking approval u/s.80G(5) of the Act has been denied merely for an inadvertent mistake of mentioning incorrect Sub-Clause in which the application was made, which Ld. CIT(E) himself could have corrected and considered in the light of the fact that he was aware of the fact and situation in which the application was filed by the assessee. We, therefore, find merit in the contention of the Ld. Counsel for the assessee that the Ld. CIT(E) ought not to have rejected the assessee’s application but should have considered it in the light of the correct provisions of law. The issue we find is squarely covered by the decision of the ITAT, Mumbai Bench in the case of Rotary Charity Trust (supra), wherein they have decided an identical issue in favour of the assessee and restored the matter back to the Ld. CIT(E) for consideration afresh in terms of the correct provision of law treating the application to have been made in terms of the correct provisions of law. In the light of the above, we direct the Ld. CIT(E) to consider the application of the assessee to have been made as per the applicable provision of law and, thereafter, pass order regarding grant of final approval u/s.80G(5) of the Act in accordance with law.
