Exemption denial upheld where assessee failed filing Form 10AB application within six months under section 80G(5)

ITAT Pune upheld CIT Exemption's denial of approval under section 80G(5) where the assessee failed to file the application within six months from provisional approval grant. The Tribunal held that without express statutory power, it cannot condone delays in filing Form 10AB applications. Relying on SC precedents in State of UP v. Harish Chandra and Union of India v. Kirloskar Pneumatic, the Tribunal confirmed that statutory authorities lack inherent power to condone delays absent specific legislative provision. The assessee's appeal was dismissed.

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Issues Involved:
The appeal concerns the denial of approval u/s. 80G(5) of the Income Tax Act, 1961 by the ld. Commissioner of Income Tax, Exemption, Pune based on the delay in filing the required application.

Summary:
The appellant, a charitable Trust, sought approval u/s. 80G(5) for providing relief to deserving persons. The provisional approval was granted on 24.09.2022, and the application in Form 10AB was filed on 29.08.2023, beyond the stipulated deadline of 28.06.2023. The ld. CIT, Exemption denied approval citing lack of power to condone the delay, as per relevant Supreme Court judgments.

The appellant appealed to the Tribunal, arguing for the benefit of an extended filing time per CBDT Circular No.07/2024. However, the ld. CIT-DR opposed, noting the circular's inapplicability due to the application's prior disposal.

The Tribunal observed that the Act does not empower it to condone delays in such matters, unlike provisions for other sections. Citing legal precedents, it affirmed that without explicit statutory authority, delay condonation is not permissible. Consequently, the denial of approval u/s. 80G(5) by the ld. CIT, Exemption was upheld.

In conclusion, the Tribunal dismissed the appeal, affirming the denial of approval u/s. 80G(5) by the ld. CIT, Exemption, Pune, on the grounds of the delay in filing the required application.

The legal position established through various court decisions emphasizes that unless expressly empowered by the statute, tribunals lack the authority to condone delays in filing applications. The Tribunal, not being a court, cannot apply provisions like section 5 of the Limitation Act. Thus, the denial of approval u/s. 80G(5) was deemed justified based on existing legal principles.

The judgment was pronounced on 16th May 2024 by ITAT Pune - AT, with Shri S.S. Godara and Shri Inturi Rama Rao as members, dismissing the appeal and upholding the denial of approval u/s. 80G(5) of the Income Tax Act, 1961.

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