Live 4 Better Foundation, a charitable organization based in Faridabad, faced rejection of their applications for tax exemption under sections 12AA and 80G of the Income Tax Act by the Commissioner of Income Tax (Exemptions) in Chandigarh. The applications were crucial for the foundation to continue receiving tax benefits and operational ease.
The main issues addressed in the tribunal were the procedural delays and the non-operational challenges faced by the foundation during the COVID-19 pandemic, which affected their ability to respond to the notices issued by the CIT(E).
The foundation argued that the pandemic hindered their ability to manage their e-filing portal, resulting in a failure to comply with the procedural requirements set by the tax authorities. This was countered by the senior departmental representative who opposed the delay’s condonation and the remanding of the case.
The Income Tax Appellate Tribunal, recognizing the unique challenges posed by the pandemic, decided to condone the delay and remand the case back to the CIT(E) for a fresh examination on merits. This decision allowed the foundation a fair chance to present their case and rectify the procedural issues that had led to the initial rejection.
The tribunal’s decision to remand the case back for a comprehensive re-evaluation on merits underlines the importance of considering extraordinary circumstances in judicial processes. It serves as a precedent for flexibility and adaptability in legal proceedings, especially during unprecedented times like the COVID-19 pandemic.
The tribunal allowed the appeals for statistical purposes, highlighting the need for a fair hearing and appropriate consideration of all facts before making a final decision on such crucial matters.
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