Gandhinagar Malayalee Samajam v. The Commissioner of Income Tax(Exemption)

Parties Involved

Facts Summary

The assessee, Gandhinagar Malayalee Samajam, filed an application in Form No. 10AB seeking approval under section 80G(5) of the Income-tax Act, 1961. The application was rejected by the Commissioner of Income-tax (Exemption) as non-maintainable because the assessee had previously claimed exemption under section 11. The assessee appealed against this order, arguing that the rejection was due to a technical error in selecting the wrong sub-clause under section 80G(5) and that the assessee was not given an effective opportunity to be heard.…

Legal Issues

• 1. Whether the learned CIT(E) was correct in rejecting the application for approval under section 80G(5)(iv)(B) of the Act as non-maintainable.
• 2. Whether the assessee made a bona fide error in selecting the wrong sub-clause of section 80G(5) of the Act.
• 3. Whether the learned CIT(E) should consider the application under the correct provisions of section 80G(5)(ii) of the Act and decide on merits.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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