Fresh 80G approval application remains maintainable where earlier rejection is final, with remand for proper hearing.

A fresh Form No. 10AB application for approval under section 80G was held maintainable despite an earlier rejection attaining finality, because the Act does not bar a subsequent application before the same authority. The earlier refusal was found to rest on an incorrect reading of section 80G(1) and section 80G(2), which govern donor-side deduction, rather than the institution-level approval sought under section 80G(5). As the assessee's explanation had not been considered fully and consistently, the matter was remitted for fresh adjudication after granting a reasonable opportunity of hearing.

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Issues: Whether the fresh Form No. 10AB application for approval under section 80G was maintainable after an earlier rejection had attained finality, whether the rejection could be sustained on the ground that the application was non est and void ab initio, and whether the matter required reconsideration with proper opportunity of hearing.

Analysis: The Tribunal held that on each application for approval under section 80G, the Commissioner is required to examine the genuineness of the activities of the trust and fulfillment of the conditions in section 80G(5). It held that the Act does not bar a subsequent application before the same authority merely because an earlier application was rejected and no appeal was filed. The Tribunal also found that the earlier rejection had proceeded on an incorrect understanding of section 80G(1) and section 80G(2), which govern deduction in the hands of the donor, whereas the assessee had sought approval as an institution under section 80G(5). In view of the incomplete and inconsistent consideration of the assessee's explanation, the Tribunal found it to restore the matter for fresh adjudication after granting reasonable opportunity of hearing.

Conclusion: The finding that the fresh application was non est was set aside, and the matter was remitted to the Commissioner for fresh consideration of the Form No. 10AB application in accordance with law after affording due opportunity to the assessee.

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