80G approval delay condoned as time limit treated as directory and matter sent back for merits review

The time limit for filing an application for final approval under section 80G(5) was treated as directory, and the technical delay was condoned in the interest of substantial justice. Because the application had been rejected only for delay, without examining the statutory eligibility conditions, the genuineness of the charitable activities, or the effect of registration under section 12A, the matter required fresh consideration on merits. The Commissioner was directed to decide the application afresh after giving due opportunity and applying the principles of natural justice.

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Issues: Whether the belated application for final approval under section 80G(5) of the Income-tax Act, 1961 deserved condonation of delay and whether the matter required reconsideration on merits.

Analysis: The application was rejected only on the ground of delay without any examination of the statutory conditions for approval, the genuineness of activities, or the effect of the assessee's registration under section 12A. The time limit for filing the application was treated as directory in nature, and the technical delay was held capable of condonation in the interest of substantial justice, particularly where the assessee claimed to be carrying on genuine charitable activities. The matter was therefore required to be examined afresh by the Commissioner on merits after affording due opportunity.

Conclusion: The technical delay in filing the application for final approval under section 80G(5) was condoned and the matter was remanded to the Commissioner for fresh decision on merits in accordance with law and principles of natural justice.

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