2022 (3) TMI 1130 - AT - Income Tax

Deduction u/s 80G(5)(vi) - appellant had withdrawn its application filed in form No. 10A - HELD THAT - CIT(E) has rejected the application of the assessee moved U/s 80G(5)(vi) of the Act in limini on an erroneous premise that the said application was withdrawn by the assessee/applicant. Whereas the fact of the matter is that the assessee had moved an application for seeking withdrawal of the application u/s 12A. As submitted that appropriate exemption u/s 80G was also granted vie order dated 31/03/2012 which was renewed from time to time and remained renewed up to 31/03/2021 - AR has also drawn our attention to the fact that approval U/s 80G(5)(vi) of the Act has already been accorded to the assessee i.e. M/s Balaji Charitable Trust for subsequent years w.e.f. A.Y. 2022-23 to 2026-27 vide order of approval dated 24/09/2021. The same has already been placed on record therefore, considering the totality of the facts and circumstances of the case, we quash and set aside the impugned order passed by the ld. CIT(E) and restore back the matter to the file of ld. CIT(E) with a direction to pass a fresh order on an application filed by the assessee U/s 80G(5)(vi) of the Act while taking into consideration the above discussed documents - Appeal of the assessee is allowed for statistical purpose.

Summary

Issues Involved:
1. Condonation of delay in filing the appeal.
2. Rejection of application for renewal of exemption u/s 80G.

Condonation of Delay:
The appellant filed an appeal against the rejection of the application for renewal of exemption u/s 80G, citing a delay of 17 days in filing the appeal. The appellant explained the delay due to unforeseen circumstances, including the health condition of the trustee's daughter who tested positive for Covid-19. The Tribunal considered the principles of condonation of delay, emphasizing a liberal approach to interpreting "sufficient cause." Referring to legal precedents, the Tribunal highlighted that the explanation for delay must be bona fide and not a mere attempt to save limitation. After assessing the facts presented, the Tribunal found the appellant's reasons for delay genuine and condoned the delay, admitting the appeal for hearing.

Rejection of Application for Renewal of Exemption u/s 80G:
The appellant's appeal challenged the order of the ld. CIT(Exemptions) rejecting the application for renewal of exemption u/s 80G. The appellant contended that the rejection was based on an erroneous premise that the application was withdrawn, whereas the appellant had actually sought withdrawal of the application u/s 12A. The ld. CIT-DR acknowledged the error in rejecting the application and clarified the procedural requirements for approval u/s 80G(5)(vi) of the Act. The Tribunal reviewed the facts and submissions, concluding that the rejection was based on a misconception. It was noted that the appellant had the necessary registration certificates and approvals in place, including approval for subsequent years. Consequently, the Tribunal set aside the impugned order and directed the ld. CIT(E) to reconsider the application, taking into account the relevant documents provided by the appellant.

In conclusion, the Tribunal allowed the appeal for statistical purposes, emphasizing the need for a fair and accurate assessment of the appellant's eligibility for exemption u/s 80G.