Portal glitch cannot deny Section 80G application filing rights after withdrawal, assessee can file fresh application

ITAT Jaipur held that after withdrawal of Section 80G application, the portal's technical glitch preventing fresh application filing cannot deny assessee's statutory right. The tribunal observed that CIT(E) had magnanimity in allowing existing Form 10AC registration to continue until expiry despite withdrawal. Since approval was already granted on fresh Form AC dated 14.2.2024 and department failed to dispute assessee's technical difficulties, the appeal was disposed of directing that assessee can file fresh Section 80G application before CIT(E) Jaipur, even manually if portal issues persist, which must be decided per law.

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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.

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