Social Networking Forum Vs CIT (Exemptions) (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT), Pune Bench, in the case of Social Networking Forum Vs. CIT (Exemptions), has directed a de novo hearing for an appellant whose application for approval under Section 80G(5) of the Income Tax Act, 1961, was rejected due to a technical error in selecting the wrong section code. The Tribunal emphasized that a minor technical defect should not disentitle an appellant from their rightful claim.
Background of the Case
The appellant, a Trust named Social Networking Forum, had filed an application for approval under Section 80G(5)(ii) of the Income Tax Act on March 29, 2024. This section relates to institutions eligible for donations, allowing donors to claim deductions.
To verify the genuineness of the appellant’s activities, the Commissioner of Income Tax (Exemptions), Pune (CIT(E)), issued a notice via the ITBA portal on May 24, 2024, requesting specific information and clarifications. The appellant submitted its compliance. Following this, the CIT(E) issued another notice on July 16, 2024, highlighting certain discrepancies in the furnished details. The assessee responded with further submissions.
However, the CIT(E) ultimately rejected the application, deeming it “non-maintainable.” The primary reason for rejection, as stated in the CIT(E)’s order, was that the application was filed under clause (ii) of the first proviso to sub-section (5) of section 80G. The CIT(E) noted that this specific clause pertains to applications for the renewal of regular approval for trusts or institutions already possessing regular approval under Section 80G(5)(vi), where the period of registration is nearing expiration.
