The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT )dismissed the appeal of the assessee as infructuous after the assessee filed a fresh application for Section 80G approval, following the issuance of Central Board of Direct Taxes ( CBDT ) Circular No. 07/2024.
Comprehensive Blood and Cancer Care Foundation, appellant-assessee, filed an appeal against the decision made by the Commissioner of Income Tax (Exemption)[CIT(E)] on February 21, 2024. The assessee raised several grounds for its appeal. Initially, it argued that the CIT(E) improperly rejected its application under section 80G(5)(iii) of the Act without issuing a show cause notice, thus breaching the principles of natural justice.
The assessee further asserted that the rejection was based on an alleged delay, claiming that the application was submitted beyond the six-month deadline from the commencement of its activities, which it contested as an invalid reason for dismissal.
Understanding Common Mode of Tax Evasion with Practical Scenarios, Click Here
In addition to these points, the assessee objected to the cancellation of its provisional registration under section 80G of the Act. It requested that, even if its earlier arguments were not upheld, the CIT(E) should consider condoning the delay in filing the application and grant approval under section 80G(5)(iii), based on the merits of its case. The assessee also indicated its intention to amend or add to its grounds before the final hearing.
During the tribunal hearing, no representatives appeared on behalf of the assessee.
The two member bench comprising Siddhartha Nautiyal (Judicial Member) and Dr.BRR Kumar(Accountant Member) noted that the appeal was time-barred by two days, but the delay was condoned because it was deemed minimal and not prejudicial to the other party.
Despite the assessee’s contentions, the CIT(E) maintained the rejection of the application due to the late filing. Following the issuance of a CBDT Circular No. 07/2024 dated April 25, 2024,, the assessee submitted a fresh application to the CIT(E). This new development rendered the original appeal moot, leading to its dismissal.
As a result, the appeal of the assessee was dismissed.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
