ITAT Faults CIT(E) for Dismissing Fresh Applications on Procedural Grounds, Directs applications Filed Within CBDT Deadline to be Considered on Merits [Read Order]
The ITAT observed that the CIT(E) should have examined the applications on their merits rather than dismissing them on technical grounds.
![ITAT Faults CIT(E) for Dismissing Fresh Applications on Procedural Grounds, Directs applications Filed Within CBDT Deadline to be Considered on Merits [Read Order]](https://images.taxscan.in/h-upload/2025/07/01/2057476-itat-application-taxscan.webp "ITAT Faults CIT(E) for Dismissing Fresh Applications on Procedural Grounds, Directs applications Filed Within CBDT Deadline to be Considered on Merits [Read Order]")
The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has set aside the orders of the Commissioner of Income Tax (Exemption) [CIT(E)] for rejecting fresh applications filed by the assessee on procedural grounds. The ITAT directed the CIT(E) to treat the applications as valid and adjudicate them on merits. The issue in this case is regarding the rejection of the...
The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has set aside the orders of the Commissioner of Income Tax (Exemption) [CIT(E)] for rejecting fresh applications filed by the assessee on procedural grounds. The ITAT directed the CIT(E) to treat the applications as valid and adjudicate them on merits.
The issue in this case is regarding the rejection of the assessee Shree Kadava Patel Gau Seva Samaj Jamvali’s applications for registration under Section 12A(1)(ac)(iii) read with Section 12AB(1)(b)(ii) and approval under Section 80G(5)(iii) of the Income Tax Act, 1961. The assessee, a public charitabletrust registered with the Charity Commissioner, Gujarat, had initially been granted provisional registration and approval for the assessment years 2022-23 to 2024-25.
While applying for renewal, the trust mistakenly filed applications on March 21, 2024, under incorrect clauses, seeking "reapproval" instead of "renewal". Upon realising the error, the assessee rectified the mistake by filing fresh applications on 3-6-2024 under the correct provisions.
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Even after making the corrective measures, the CIT(E) rejected the fresh applications, treating them as non-maintainable because the earlier applications had already been rejected, and the fresh filings did not fall under the exceptions outlined in the CBDT Circular No. 07/2024.
The assessee appealed before the ITAT for relief.
The assessee contended that the CIT(E) had misconstrued the nature of the second applications, which were curative and filed within the extended compliance period allowed by the CBDT.
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The ITAT, after hearing both sides, noted that the fresh applications were not appeals against the earlier rejections but were bona fide attempts to rectify a procedural defect. The ITAT observed that the CIT(E) should have examined the applications on their merits rather than dismissing them on technical grounds. The tribunal also noted that the CBDT Circular permitted filings within an extended window, which the assessee had adhered to.
The bench set aside the CIT(E)’s orders and restored the matter. The ITAT, comprising Sanjay Garg (Judicial Member) and Makarand V. Mahadeokar (Accountant Member), directed the assessee to furnish all requisite information and documents and to cooperate fully with the proceedings. The appeal was allowed for statistical purposes.
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