2024 (10) TMI 235 - AT - Income Tax

Rejection of application for final approval u/s 80G(5)(iii) - delay in filling in Form 10AB - HELD THAT - We observe that the assessee is a Charitable Organization and provisionally enjoying registration u/s 12A and has also been granted provisional registration u/s 80G(5)(iii) on 15.03.2022. Application for approval u/s 80G(5)(iii) was filed on 01.11.2022 duly filled in Form 10AB. AO treated the same as non- maintainable on the ground that CBDT vide its Circular bearing No. 6 of 2023 dated 24th May, 2023 has extended the date of filing new application in Form 10AB upto 30.09.2022. We, however, on perusal of the recent Circular dated 25.04.2024 issued by the CBDT find that the due date for filing Form 10A/10AB has now been extended upto 30.06.2024. Since the assessee s application was filed on 01.11.2022 , the same is before the extended due date by 30. 06.2024 issued by CBDT. We direct the CIT(Exemption) to admit the assessee s application in Form 10AB and grant approval under section 80G(5)(iii) in accordance with law. Appeal of the assessee stands allowed for statistical purposes.

Summary

Issues:
1. Delay in filing the appeal before the Tribunal.
2. Rejection of application for final approval under section 80G(5)(iii) of the Income Tax Act.

Analysis:

Issue 1: Delay in filing the appeal before the Tribunal
The appeal was filed 243 days beyond the statutory time limit. The assessee attributed the delay to the former Secretary's physical limitations due to old age, which hindered timely communication and filing of the appeal. The Tribunal, considering the explanation provided, invoked the principle of "sufficient cause" as outlined in Section 253(5) of the Income Tax Act, emphasizing the need for a liberal interpretation of the term. Citing judicial precedents, including the case of Collector Land Acquisition Vs. Mst. Katiji, the Tribunal highlighted that substantial justice should prevail over technical considerations. The Tribunal concluded that the delay was not a deliberate strategy but a result of human lapses, thus condoning the delay and admitting the appeal for adjudication on merit.

Issue 2: Rejection of application for final approval under section 80G(5)(iii) of the Income Tax Act
The assessee's application for approval under section 80G(5)(iii) was initially rejected by the ld. CIT(Exemption) on the grounds of being time-barred. The application, filed on 01.11.2022, was considered non-maintainable as it was submitted after the extended due date of 30th September, 2022. However, a subsequent Circular issued by the CBDT extended the due date for filing Form 10A/10AB until 30th June, 2024. Given this new deadline, the Tribunal directed the ld. CIT(Exemption) to admit the assessee's application in Form 10AB and grant approval under section 80G(5)(iii) in accordance with the law. Consequently, the appeal of the assessee was allowed for statistical purposes.

In conclusion, the Tribunal's judgment focused on the principles of justice, emphasizing the importance of considering genuine reasons for delays and ensuring that technicalities do not impede the pursuit of justice.