ITAT Jaipur condoned a 150-day delay in filing Section 12AB and 80G applications, remanding for fresh consideration despite procedural rejection by the AO.
ITAT Restores NGO Registration Applications With Condoned Delay
The ITAT Jaipur restored applications for renewal of registration under Section 12AB and approval under Section 80G, which had been rejected solely due to a 150-day delay in submission. The Tribunal exercised discretion under Section 119(2)(b) to condone the delay, noting the defects were curable and the trust had acted in good faith.
The trust demonstrated compliance with substantive conditions, including utilization of funds for charitable purposes and maintenance of accounts. The AO’s rejection without granting opportunity to show cause was found disproportionate. The Tribunal emphasized the legislative intent to promote charitable activities, which would be undermined by hyper-technical disapprovals.
This ruling reinforces the principle that procedural lapses not affecting tax revenue should not lead to permanent disqualification. Charitable organizations should still prioritize timely filings, but practitioners may now cite this precedent when seeking restoration of benefits.
