ITAT orders Reconsideration of 80G Application Rejection by CIT(E), citing CBDT Circular on Extended Deadlines

The ITAT has ordered the reconsideration of an application rejection for tax exemption under Section 80G of the Income-tax Act. The application was denied despite the taxpayer meeting deadlines extended by a CBDT circular. The tribunal observed that the rejection was not in line with the spirit of procedural fairness mandated by law. It directed the assessing officer to reevaluate the application, considering the extended timelines and providing the applicant a fair opportunity to present their case. This judgment emphasizes the importance of adhering to CBDT guidelines and ensuring taxpayers are not unfairly penalized for procedural delays. Experts view this as a significant judgment, ensuring accountability among assessing authorities while protecting taxpayer rights. The ruling also highlights the need for consistency and transparency in granting tax exemptions under statutory provisions.