2024 (10) TMI 166 - AT - Income Tax

Rejection of registration of assessee society u/s 80G - application filled belatedly - HELD THAT - Assessee submitted that recently the Board has considered the genuine hardship of the assessee, who could not file the application with in 6 months of commencement of activities, and allowed such applicants to file fresh application in those cases on or before 30.06.2023, and that the assessee has taken the benefit of said circular in filing fresh application. Based on said contention, ld. AR of the assessee has submitted that since fresh application has already submitted by the assessee in online mode, same is pending before ld. CIT(E). DR who happens to be the same authority / officer-in- charge dealing with said applications filed by assessees, based on that contention raised by the assessee relying on the CBDT Circular, has not objected the prayer of the assessee. He has submitted at Bar that the present appeal of the assessee may be allowed to be withdrawn and the application which the assessee has filed in view of the abovesaid circular of the Board, be allowed to be dealt with in accordance with law, by the revenue. Prayer made by the assessee for withdrawal of the appeal for which ld. DR has no objection, is allowed. Hence, we allow the appellant to withdraw the appeal. Appeal of the assessee is dismissed as withdrawn.

Summary

Issues:
1. Condonation of delay in filing the appeal by the assessee.
2. Rejection of the application for registration of assessee society under section 80G.

Analysis:
1. The appeal was filed by the assessee against the order of the ld. CIT(E), Jaipur, rejecting the application seeking approval under section 80G. The assessee cited a delay of 65 days in filing the appeal due to unforeseen circumstances, specifically mentioning the involvement of the son of the signatory in the Ukraine war area. The assessee relied on various judicial decisions to support the request for condonation of delay, emphasizing that delay alone should not be a ground for rejection. The ITAT Jaipur, after considering the arguments, condoned the delay of 65 days, stating that the assessee was prevented by sufficient cause, as per the decision of the Hon'ble Supreme Court in a relevant case. Consequently, the appeal was admitted for further consideration on its merits.

2. The primary issue in the appeal was the rejection of the application for registration of the assessee society under section 80G. The assessee had applied for approval under clause (ii) of the first proviso to sub-section (5) of section 80G. However, the ld. CIT(E), Jaipur, found the assessee ineligible for approval under clause (ii) as it was not previously approved under clause (i) or (iii) of the same provision. Despite a notice to justify the claim, the applicant did not comply, leading to the rejection of the application. During the appeal hearing, the assessee's representative mentioned a recent circular by the Board allowing applicants facing genuine hardship to file fresh applications. The ld. CIT(E) did not object to the withdrawal of the appeal, as the assessee had submitted a fresh application in line with the circular. Consequently, the ITAT allowed the appellant to withdraw the appeal, resulting in its dismissal.

In conclusion, the ITAT Jaipur granted the condonation of delay for the appeal filing due to valid reasons presented by the assessee. The rejection of the application for registration under section 80G was based on the non-fulfillment of eligibility criteria, but the subsequent submission of a fresh application in accordance with a Board circular led to the withdrawal and dismissal of the appeal.