Delay In Uploading Application Shall Not Alone Form Basis For Denial Of Registration U/s 80G In Case Of Technical Glitches: Chandigarh ITAT
Pankaj Bajpai
16 March 2024 1:30 PM GMT
On finding that the dismissal of the application on the ground of being barred by limitation is not justified, the Chandigarh ITAT set aside the order of dismissal of final registration u/s 80G of the Income Tax Act and restored the matter to the file of the CIT(E) to decide the application after giving adequate opportunity to the assessee to present its case, irrespective of the fact that there was any delay in uploading the application.
The Bench of the ITAT comprising of Sanjay Garg (Judicial Member) and Vikram Singh Yadav (Accountant Member) observed that, “the assessee had duly tried to upload the application for final registration u/s 80G(5) of the Act within the extended period of limitation. However, the same could not be uploaded due to certain technical glitches, therefore, under the circumstances, the dismissal of the application on the ground of being barred by limitation by the CIT(E) is not justified.” (Para 4)
As per the brief facts of the case, the assessee Trust was earlier granted provisional registration. However, the final registration of the assessee Trust was rejected by the CIT(E) observing that as per clause (iii) of the first proviso to sub-section (5) of Section 80G, the assessee Trust was required to apply for final registration atleast six months before the expiry of the period of provisional approval or within six months of commencement of its activities, whichever is earlier. The CIT(E) was with a view that the last date for application was extended vide CBDT Circular No.8/2022 up to 30.09.2022 and as per the submissions of the assessee, the assessee has already commenced its activities during Financial Year 2020-21, however, the present application was filed by the assessee on 05.01.2023 which was even after the last date for making application as extended by the CBDT. He, therefore, rejected the application of the assessee being barred by limitation.
The Bench noted that the assessee had duly tried to upload the application electronically before the due date, however, there was a technical glitch on the website/portal of the Income Tax Department due to which the assessee could not upload the application for final registration.
The Bench observed that the assessee had duly communicated the aforesaid technical glitch to the Income Tax Department and regarding the inability of the assessee to upload the application.
The Bench further observed that the assessee in this respect has referred to various e-mails and even has referred to the response received from the Help Desk that they were looking into the matter and further advised the assessee Trust to re-try the uploading of the application.
Therefore, on finding no valid ground for dismissal of the application, ITAT allowed the assessee's appeal for statistical purposes.
Counsel for Appellant/Taxpayer: Parikshit Aggarwal
Counsel for Respondent/Department: Kusum
Case Title: Madhav Gaushala Charitable Trust verses CIT
Case Number: ITA No 536/CHD/2023
