Infant India Vs CIT (Exemption) (ITAT Pune)
Summary: The Pune ITAT set aside the CIT(E)’s order rejecting Infant India’s Form No. 10AB application for approval under Section 80G and restored the matter for a fresh decision on merits. The assessee had filed the application on 09.10.2024 under clause (ii) of the first proviso to Section 80G(5). The CIT(E) treated it as non-maintainable because the assessee had only provisional approval, had not furnished the regular approval contemplated for an application under clause (ii), and the application was also considered delayed. The assessee explained that the wrong clause had been selected inadvertently and attributed the delay and incorrect filing to its inability to access necessary documents and compliance support after the Chartered Accountant handling the matter left the organisation.
The Tribunal noted that the CIT(E) had rejected the application without examining its substantive merits and without drawing an adverse inference regarding the assessee’s charitable activities. It also recorded the assessee’s submission that the provisional approval itself had been obtained under the wrong clause even though the trust was already in existence and carrying on activities, and that the subsequent application for regular approval was again filed under the wrong clause. The assessee was stated to hold a valid Section 12A registration for AYs 2022-23 to 2026-27.
