Niravadya Foundation Vs CIT(Exemption) (ITAT Ahmedabad)
The appeal before the Income Tax Appellate Tribunal (ITAT) Ahmedabad was filed by the assessee, Niravadya Foundation, against the order of the Commissioner of Income Tax (Exemptions), Ahmedabad [CIT(E)], dated 06.11.2024. The CIT(E) had rejected the assessee’s application for approval under clause (iii) of the first proviso to section 80G(5) of the Income Tax Act, 1961.
Condonation of Delay: The appeal was filed with a delay of 76 days. The assessee submitted an affidavit from a trustee explaining that the delay was due to the non-communication of the CIT(E)’s order by its consultant. The consultant believed that another hearing or notice would follow before any order was passed. The assessee came to know about the rejection only in February 2025 during related proceedings under section 12A, after which a new consultant filed the appeal in April 2025. The Tribunal found the explanation bona fide and not arising from negligence, relying on the Supreme Court ruling in Collector, Land Acquisition v. Mst. Katiji (167 ITR 471), which emphasized a liberal approach in condonation matters. Accordingly, the delay was condoned.
Facts of the Case: The assessee, a Section 8 company under the Companies Act, 2013, is engaged in promoting education and other charitable activities in Gujarat. It filed an application in Form No. 10AB on 30.06.2024, seeking approval under clause (iii) of section 80G(5), which allows donors to claim deductions on donations made to approved entities. The CIT(E) issued a notice on 10.09.2024 requesting supporting documents, to which the assessee replied on 17.10.2024, enclosing details and requesting that proceedings be kept in abeyance pending its section 12A registration appeal before the Tribunal.
