Relief to IRCS: ITAT Sets Aside CIT(E)'s Rejection of Renewal Application u/s 80G(5)(iii) [Read Order]
ITAT noted that the submission was made within the stipulated time, and the CIT(E) had ignored the documents, leading to an erroneous rejection
![Relief to IRCS: ITAT Sets Aside CIT(E)s Rejection of Renewal Application u/s 80G(5)(iii) [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/ITAT-ITAT-Ahmedabad-IRCS-Relief-to-IRCS-TAXSCAN.jpg "Relief to IRCS: ITAT Sets Aside CIT(E)s Rejection of Renewal Application u/s 80G(5)(iii) [Read Order]")
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) in a recent ruling, provided relief to the Indian Red Cross Society (IRCS) by setting aside the Commissioner of Income Tax(Exemption)[CIT(E)]'s rejection of their renewal application under Section 80G(5)(iii) of Income Tax Act,1961. Indian Redcross Society,appellant-assessee,applied for renewal of approval under Section...
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) in a recent ruling, provided relief to the Indian Red Cross Society (IRCS) by setting aside the Commissioner of Income Tax(Exemption)[CIT(E)]'s rejection of their renewal application under Section 80G(5)(iii) of Income Tax Act,1961.
Indian Redcross Society,appellant-assessee,applied for renewal of approval under Section 80G(5)(iii) by submitting Form 10AB. Provisional approval was granted on 05/04/2022, valid until A.Y. 2024-25.
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The CIT(E) issued a questionnaire on 06.07.2024 and a final notice on 10.08.2024, asking for compliance by 22.08.2024.
The assessee submitted the required documents on 21.08.2024, including activity details, financial statements for Financial Year(FY)s 2021-22, 2022-23, and 2023-24, donation records, bank statements, and trustee identity proof.
Despite timely submission, the CIT(E) rejected the application on 03/09/2024, citing non-compliance and failure to prove the genuineness of activities.
The assessee appealed before the ITAT, arguing the CIT(E) ignored the documents, resulting in an incorrect rejection.
The assessee's counsel explained during the hearing that in response to the renewal notice under Section 80G(5)(iii), the required documents were submitted on 21.08.2024.
The counsel argued that the CIT(E) ignored this submission and rejected the application for non-compliance, even though the department had acknowledged the documents. The counsel requested that the matter be sent back to the CIT(E) for fresh adjudication. The Departmental Representative (DR) did not object to this.
Read More:ITAT sets aside 80G Registration Rejection Order, Cites Insufficient Time Given to Assessee
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The two member bench comprising Suchitra Kamble (Judicial Member) and Makarand V.Mahadeokar(Accountant Member) noted that the assessee submitted its response on 21.08.2024, within the deadline given in the CIT(E)’s notice. However, the CIT(E) ignored this submission and rejected the application for non-compliance, without properly reviewing the documents. This decision was made on incorrect facts and without proper verification.
The appellate tribunal set aside the CIT(E)'s order and directed that the matter be sent back for fresh review, with the CIT(E) required to consider the submission and give the assessee a chance to be heard before making a decision.
In short,the appeal filed by the assessee was allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
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