GEETA SHYAM FOUNDATION,MUMBAI V. COMMISSIONER OF INCOME-TAX (EXEMPTION), MUMBAI

ITA 6261/MUM/2024

AI Insights

The case involves the Geeta Shyam Foundation appealing against the decision of the Commissioner of Income Tax (Exemption), who rejected their application for approval under section 80G of the Income Tax Act. The rejection was based on an inadvertent error where the foundation cited clause (iv) instead of the correct clause (iii) in their application. The Tribunal found that the Commissioner should have allowed the foundation an opportunity to rectify this error and thus restored the appeal to the file of the Commissioner for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35486 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KISHOR DHULE; DR
• Assessee Lawyers: MEHUL SHAH; AR
• Section: 80G

Judgement Text

"| आयकर अपीलीय अिधकरण \fा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 6261/Mum/2024 Assessment Years: 2025-26 Geeta Shyam Foundation 501, Fairwinds, No.5, B.T.P.S 11, Dattatraya Road Santacruz West - 400054 [PAN: AAATG8833F] Vs Commissioner of Income Tax (Exemption) अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Mehul Shah, A/R Revenue by : Dr. Kishor Dhule, CIT, D/R सुनवाई की तारीख/Date of Hearing : 21/01/2025 घोषणा की तारीख /Date of Pronouncement: 23/01/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 05/10/2024 by ld. Commissioner of Income Tax – (Exemptions) [hereinafter ‘the ld. CIT(E)’] by which the application of the assessee seeking the approval u/s 80G of the Act was rejected. 2. As per the scheme of the amended law, first proviso to sub-section (5) of section 80G requires an Assessee to make application before six months of the date of expiry of approval. The relevant proviso is reproduced here under: \"Provided that the institution or fund referred to in clause (vi) shall make an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for grant of approval.— (i) where the institution or fund is approved under clause (vi) [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020], within three months from the 1st day of April, 2021; ii) where the institution or fund is approved and the period of such approval is due to expire. at least six months prior to expiry of the said period: I.T.A. No. 6261/Mum/2024 2 (iii) where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities. whichever is earlier: [or] (iv) where activities of the institution or fund have-- (A) not commenced. at least one month prior to the commencement of the previous year relevant to the assessment year from which the said approval is sought; (B) commenced at any time after the commencement of such activities:” 3. When the assessee made the application, inadvertently clause (iv) has been mentioned instead of clause (iii). Due to this inadvertent error, application of the assessee was rejected. 4. We are of the considered view that the ld. CIT(E) ought to have given an opportunity to rectify the error. Therefore, in the interest of justice and fairplay, we restore the appeal to the file of the ld. CIT(E). the ld. CIT(E) is directed to allow an opportunity to the assessee to rectify the error and decide the issue afresh as per the relevant provisions of the law. 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 23rd January, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE-PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 23/01/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs I.T.A. No. 6261/Mum/2024 3 आदेश की \u0015ितिलिप अ\u001aेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001c / The Appellant 2. \u0015\u001dथ\u001c / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\" ) अपील ( / The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "