80G approval application rejected for delay and filing error set aside; matter remanded for fresh merits-based consideration.

Rejection of an 80G(5) approval application for delayed filing of Form No. 10AB and an alleged portal selection error was set aside where the applicant claimed the matter had not been examined on merits. The Tribunal held that, in the interest of justice and fair play, the Commissioner should grant an opportunity to explain the defect, produce supporting material, and consider any request for condonation of delay if required. The matter was remanded for fresh adjudication on merits after hearing the assessee, and the substantive claim for approval was left open.

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Issues: Whether the rejection of approval under section 80G(5) for delay and technical error in filing the application warranted interference and remand for fresh consideration after giving an opportunity of hearing.

Analysis: The application for approval was rejected on the ground that Form No. 10AB was filed beyond the extended time limit. It was also noticed that the assessee claimed an inadvertent mistake in selecting the proper clause on the portal and asserted that the application had not been examined on merits. In view of the claim of an old trust, the plea that the matter should be considered after allowing proper opportunity to furnish explanations and supporting material was accepted. The Tribunal found it appropriate, in the interest of justice and fair play, to set aside the rejection and restore the matter to the Commissioner for a fresh decision on merits after hearing the assessee and considering any application for condonation of delay, if required.

Conclusion: The rejection order was set aside and the matter was remanded for fresh adjudication, with the assessee succeeding only to that extent.

Final Conclusion: The appeal was not decided on the substantive claim of approval, but the assessee obtained a remand for reconsideration of the application in accordance with law.

Ratio Decidendi: Where an approval application is rejected for delay or procedural error, the matter may be restored for fresh consideration if the assessee has not been afforded a fair opportunity to explain the defect and support the claim on merits.

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