Appeal allowed for 80G regular registration rejection overturned due to extended deadline under Circular 08/2023

The ITAT PUNE allowed the appeal, setting aside the CIT(E)'s rejection of the appellant's 80G regular registration application on limitation grounds. The appellant had received provisional 80G registration on 16/02/2022 and filed for regular registration on 30/09/2023. The tribunal held that Circular 08/2023 extended the filing deadline to 30/09/2023, making the application timely. Non-compliance with rectification notices was deemed accidental as they were sent to a tax consultant who failed to inform the assessee. The matter was remanded to CIT(E) for adjudication on merits with proper hearing opportunities.

---

---

Issues:
1. Rejection of application for grant of regular 80G certificate by Ld. CIT(E) for non-compliance.
2. Applicability of circular 08/2023 in cases of provisional approval under section 80G(5)(iv) of the Income-tax Act.
3. Non-compliance with notice seeking rectification of discrepancies and submission of required documents.

Analysis:

Issue 1:
The appellant contested the rejection of the application for a regular 80G certificate by the Ld. CIT(E) due to non-compliance. The rejection was based on grounds such as non-compliance with a notice requiring rectification, failure to produce necessary registration certificates, and the application being time-barred. The appellant filed the application after the stipulated period, leading to its rejection by the Revenue. The rejection was challenged on multiple grounds in the appeal, primarily focusing on the refusal to grant regular 80G registration.

Issue 2:
The circular 08/2023 was a crucial point of contention regarding the time limit for filing applications for regular registration under section 80G(5) of the Act. The circular extended the time limit for filing applications due to genuine hardships faced by stakeholders. The appellant, having been granted provisional registration under section 80G(5)(iv), was entitled to the extended time period as per the circular. The Tribunal examined the applicability of the circular in cases of provisional approval and emphasized the importance of adhering to the extended timelines provided by such circulars.

Issue 3:
Regarding the non-compliance with the notice seeking rectification of discrepancies and submission of required documents, the Tribunal noted that the notices were sent to a tax consultant's email, which failed to inform the appellant for compliance. The non-compliance was deemed accidental and unintentional. The Tribunal ordered the matter to be remanded back to the Ld. CIT(E) for reconsideration, directing the treatment of the appellant's application as filed within the prescribed time limit. The Tribunal emphasized the need for a fair adjudication of the matter after providing the appellant with adequate opportunities.

In conclusion, the Tribunal allowed the appeal for statistical purposes, setting aside the rejection of the application for regular 80G registration due to the limitation issue and directing a reconsideration of the matter based on the merits and compliance with the circular provisions.

---