Maharani Shantadevi Trust Vs CIT (Exemption) (ITAT Ahmedabad)
Clerical Error in Selecting Wrong Clause Cannot Defeat Section 80G Approval—Application to Be Decided Afresh ITAT Ahmedabad
Assessee-trust applied for final/regular approval u/s 80G(5). CIT(E) rejected application (18.10.2024) stating that in Form 10AB, assessee wrongly selected clause (ii) instead of correct clause (iii) of first proviso to section 80G(5). Appeal filed with 135 days’ delay; condoned by ITAT considering trustee’s affidavit.
Tribunal
CIT(E) knew that assessee already had provisional approval u/s 80G(5) and application was for conversion into regular approval. Recent amendments in section 80G created confusion among assessees, professionals, and even tax authorities about clauses/codes in forms. CBDT itself issued clarificatory circulars. If contents of application clearly show intent, an inadvertent error in choosing the wrong clause cannot be ground for rejection. Application should have been treated under the correct clause and decided on merits. ITAT set aside CIT(E)’s rejection & directed that assessee’s application be treated as filed under clause (iii) of first proviso to section 80G(5) and decided on merits. CIT(E) to pass order within 90 days of receipt of ITAT directions.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘CIT(E)’] dated 18/10/2024, rejecting the application for final/regular approval u/s.80G(5) of the Income Tax, 1961 (hereinafter referred to as ‘the Act’).
