Alumni Association Vs CIT (Exemption) (ITAT Hyderabad)
Section 80G Application Rejected Without Allowing Rectification of Typographical Error – ITAT Hyderabad Remands Case
The Income Tax Appellate Tribunal (ITAT) Hyderabad Bench has overturned an order by the Commissioner of Income Tax (Exemption) [CIT(E)] that rejected an application for Section 80G approval filed by the Alumni Association. The ITAT remanded the case back to the CIT(E) for a fresh decision on the merits, finding that the application was rejected solely on a “technical ground” without providing the assessee an opportunity to rectify a “typographical mistake.”
The Alumni Association had sought approval under Section 80G of the Income Tax Act, 1961, which grants deductions for donations to certain funds or institutions. The CIT(E) rejected this application on December 17, 2024. The core issue, as highlighted by the assessee, was that their application in Form 10A for provisional registration incorrectly cited Section 80G(5)(i) instead of the appropriate Section 80G(5)(iv).
The assessee argued that the rejection was contrary to facts and law, particularly as provisional registration under Section 80G had already been granted until Assessment Year 2025-26. They contended that all necessary information was provided, and the CIT(E) failed to consider that the appellant’s activities, having resumed only in 2023, necessitated filing Form 10A as a new applicant. Crucially, the assessee stressed that the CIT(E) did not offer an opportunity to correct the “procedural deficiency” and that there was no intention or scope to derive benefit from the incorrect clause. The appellant also pointed out that the genuineness of their charitable activities was not doubted, and they already held registration under Section 12A of the Act.
