2024 (6) TMI 520 - AT - Income Tax

Rejection of Application u/s 80G - after withdrawal of the above said application, portal of the Department did not allow to assessee to apply once again for the relief under the said provision - HELD THAT - A perusal of the impugned order would reveal that while dismissing the application, as per request for withdrawal on behalf of the assessee, it was observed that registration, if any, granted to the institution- the assessee, in Form 10AC, will continue to exist till expiry of the time period mentioned thereon unless cancelled separately. This shows that the CIT(E) showed magnanimity in dealing with the matter. In the course of arguments, nothing has been brought on record on behalf of the Department that the submission of the assessee about non filing of fresh application on the portal of the Department is wrong or without any basis or justification. When the application under clause (iii) of first proviso to sub-section (5) of Section 80G of the Act was got dismissed as having been withdrawn, that the portal of the Department has not allowed the assessee to upload afresh application under the said provision of law, approval has already been granted to the assessee on 14.2.2024 by CIT(E) on fresh Form AC, and circular No.7 reproduced above, this appeal is hereby disposed off, while observing that the assessee shall be entitled to present afresh application under clause (iii) of first proviso to sub-section (5) of Section 80G of the Act before the ld. CIT(E), Jaipur, in accordance with law, even manually, in case technical glitch continues to disallow filing thereof. Once the same is entertained,CIT(E) to dispose of the application in accordance with law.

Summary

Issues:
1. Condonation of delay in filing the appeal under Section 80G of the Income Tax Act.
2. Maintainability of the appeal after withdrawal of the initial application under clause (iii) of first proviso to sub-section (5) of Section 80G.
3. Technical glitch preventing the assessee from reapplying under the said provision.

Analysis:
1. The assessee appealed against the rejection of its application under Section 80G by the Learned CIT(E), Jaipur. The delay in filing the appeal was attributed to obtaining legal advice on whether to challenge the order. The Appellate Tribunal, considering the reasons for delay and lack of objection from the Department, condoned the delay and allowed the appeal to proceed.

2. The Department argued against the maintainability of the appeal due to the withdrawal of the initial application under Section 80G. However, the assessee sought to raise an additional ground, asserting a technical glitch prevented reapplication. The Tribunal allowed the additional ground, noting the approval granted to the assessee on a fresh Form 10AC and a relevant CBDT circular extending the due date for filing such applications. The appeal was disposed of, permitting the assessee to submit a fresh application before the CIT(E), Jaipur.

3. The Tribunal acknowledged the technical issue preventing the assessee from reapplying under Section 80G, as claimed by the assessee. Referring to a recent CBDT circular addressing difficulties in electronic filing, the Tribunal emphasized the assessee's right to present a fresh application manually if the portal issue persisted. The Tribunal directed the CIT(E) to process the application in accordance with the law once submitted, ensuring the assessee's opportunity to seek relief under the provision.

This judgment highlights the importance of procedural compliance, the discretion of the Tribunal in condoning delays, and the obligation of authorities to address technical issues hindering legitimate applications. The decision underscores the need for fair consideration of genuine challenges faced by taxpayers in fulfilling statutory requirements.