2025 (9) TMI 1184

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....rounds of appeal: "1. Rejection of application filed in Form 10AB for getting regular approval of registration u/s 80G of Act. 1.01 On the facts and circumstances of your appellant's case and in law, the ld. CIT(E) has grossly erred in rejecting application filed inform 10AB of Act, filed for getting regular approval of registration from provisional approval of registration granted under clause (iv) of first proviso to Section 80G(5) of the Act- Without giving adequate opportunity of being heard, thereby breaching principals of natural justice. On the plea that your appellant has filed an application under clause (ii) and not under clause (iii) of first proviso to section 80G(5) Act as you appellant was h....

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....the case are that the assessee filed an application for approval under section 80G of the Income Tax Act, 1961 (Act) in Form 10AB. However, the aforesaid application was incorrectly filed by the assessee under clause (ii) of the first proviso to sub-section (5) of the section 80G instead of clause (iii). While processing the application filed by the assessee, CIT (Exemptions) noted that Clause (ii) applies to institutions or funds that already possess a regular approval which is nearing expiry, requiring them to apply at least six months before the end of the approval period. However, upon examining the records, the CIT (Exemptions) observed that the assessee did not possess a valid regular approval under Form 10AC or Form 10AD. Instead, th....

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....der to obtain regular approval, the appellant filed Form 10AB on 09.05.2024 under clause (ii) of the first proviso to section 80G(5). However, a notice dated 14.06.2024 was issued stating that the application may be rejected since clause (ii) applies only when a valid regular approval exists, which the appellant did not have. The ld. counsel for the assessee submitted that although the correct clause applicable was clause (iii), the application was filed under clause (ii) inadvertently. This mistake was later acknowledged and, taking into account the extension of the deadline to 30.06.2024 by CBDT Circular No. 07/2024 dated 25.04.2024, the earlier application was withdrawn in response to the notice. Consequently, the CIT(E) passed an order ....

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....or the assessee also placed reliance on the case of V-One Society vs. CIT(E), Ahmedabad (ITA No. 287/Ahd/2025), which also involved inadvertent clause selection and was remanded back for de novo consideration. The ld. counsel for the assessee submitted that that in the case of Bhagwan Mahaveer Jain Relief Trust vs. CIT(E) [(2025) 171 taxmann.com 574], where the Raipur Tribunal held that rejection without giving a show-cause notice violated natural justice; and Rotary Charity Trust vs. CIT(E) [(2025) 170 taxmann.com 797], where the Mumbai Tribunal remanded the matter due to inadvertent selection of the wrong clause and lack of opportunity being given to the assessee to provide an explanation. 6. In response, Ld. DR placed reliance on the ....