Sec 80G benefits can not be denied because of a technical error during application: ITAT
North Eastern Social Research Centre (I.T.A. No.741/Kol/2024)
Facts:
1. The taxpayer applied for provisional approval under Clause (iv) to First Proviso to section 80G(5) and it was granted by the CIT(Exemption) in Form 10AC, which was valid from June 28, 2022, to A.Y 2025-26.
2. After that, the taxpayer applied for final approval under Clause (iii) to First Proviso to section 80G(5), which was rejected by the CIT(Exemption) observing that the taxpayer had already started its activities even before granting of provisional approval, and since the period for making application cited in Clause (iii) to First Proviso to section 80G(5) had already expired.
ITAT Kolkata held as below:
1. The provisional approval had indeed been granted to the taxpayer institution till the A.Y 2025-26, and hence, the taxpayer trust was not restricted from making such an application for final approval.
2. The petition of the taxpayer is partly permitted and CIT(Exemption) is directed to grant final approval to the taxpayer under Clause (iii) to First Proviso to section 80G(5) if the taxpayer is discovered qualified.
The Copy Of the order is as under:
