TaxTMI 
TaxTMI 
2025 (10) TMI 1102
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....to sub-section (5) of section 80G of the Income Tax Act, 1961 [hereinafter referred to as " the Act"]. 2. Condonation of Delay 2.1 It is noted that there is a delay of 76 days in filing the present appeal before us. The assessee has filed an affidavit sworn by Shri Rangam Trivedi, Trustee, explaining the reasons for the delay along with a petition for condonation of delay. As per the affidavit, the delay occurred due to non-communication of the impugned order by the consultant who was handling the matter before the learned CIT(Exemption). It was stated that although the assessee had duly responded to the notice dated 10.09.2024 by filing a reply on 17.10.2024, the consultant remained under a bona fide impression that the department wo....
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....f education in the State of Gujarat. 3.2 The assessee filed an application in Form No. 10AB on 30.06.2024 seeking approval under clause (iii) of the first proviso to section 80G(5) of the Act, for the purpose of enabling donors to claim deduction in respect of contributions made to the trust. Upon receipt of the said application, the learned CIT(E) issued a notice dated 10.09.2024, calling upon the assessee to submit requisite details and documentary evidences in support of its claim. The assessee, in compliance, filed a detailed reply on 17.10.2024, enclosing the relevant documents and also requesting the learned CIT(E) to keep the proceedings in abeyance pending disposal of its appeal relating to registration under section 12A, which w....
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....ned AR further submitted that the CIT(E) rejected the application without affording the assessee an effective opportunity of being heard. The assessee had, in response to the notice dated 10.09.2024, filed a detailed reply on 17.10.2024 and specifically requested that the proceedings be kept in abeyance pending the outcome of its appeal for registration under section 12A. However, the CIT(E) passed the order on 06.11.2024 without issuing any further communication or providing personal hearing, thereby violating the principles of natural justice. 4.1 The AR also submitted that the Co-ordinate Bench in the assessee's own case in ITA No. 1453/Ahd/2024 dated 09.01.2025, relating to rejection of its application under section 12A(1)(ac)(iii) h....
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....on the ground that the assessee already possessed a valid approval and that the subsequent application was nonmaintainable. 6.2 On a plain reading of the statutory provisions and Rule 11AA, we are unable to agree with the conclusion of the learned CIT(E). The assessee's earlier approval in Form No. 10AC was provisional and was valid only for a limited period. The law specifically mandates that such provisional approval must be followed by a fresh application in Form No. 10AB for regular approval under clause (iii) once the activities have commenced or before the expiry of the provisional period. Therefore, the assessee's application was both proper and maintainable under the scheme of the Act. The reasoning of the CIT(E) that the existen....