Application for approval under 80G(5) with four-day delay remanded for fresh adjudication after condonation of delay

Rejection of an application for approval under a charitable-approval provision was set aside where a four-day filing delay was condoned, applying the principle that merits must be examined rather than allowing limitation alone to determine outcome. The prior order refusing approval was remanded to the revenue authority with directions to treat the application as timely and to decide afresh after affording a reasonable opportunity of hearing. The decision follows a higher-court precedent prioritising merit-based adjudication over technical limitation when delay is minimal.

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Issues: Whether the Tribunal should condone a four-day delay in filing the Form No.10AB application for regular approval under section 80G(5) and remit the matter to the CIT(Exemption) for fresh adjudication on merits.

Analysis: The application for regular approval under section 80G(5) was filed on 04/10/2024 while the prescribed time (six months prior to expiry of provisional approval or within six months from commencement as applicable) required filing by 30/09/2024, resulting in a delay of four days. The learned CIT(Exemption) rejected the application solely on the ground of delay without examining the merits. The Tribunal examined the statutory requirement under section 80G(5) and the relevant timeline, noted the absence of adverse findings on merits by the CIT(Exemption), considered the small and unintentional nature of the delay, and applied the principle that merits should not be defeated merely by limitation where appropriate (following the cited Supreme Court precedent). The Tribunal concluded that condonation of a four-day delay was warranted and that the proper course was to treat the application as filed in time and remit the matter for fresh consideration after affording the assessee a reasonable opportunity to be heard and to produce required documents.

Conclusion: The delay of four days is condoned; the order of the CIT(Exemption) rejecting the Form No.10AB application is set aside and the matter is remanded to the CIT(Exemption) with a direction to treat the application as timely filed and decide the application afresh on merits after providing reasonable opportunity of hearing to the assessee. The appeal is partly allowed in favour of the assessee for statistical purposes.

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