Facts of the Case

The assessee, Shri Champalal Shanti Devi Laddar (Maheshwari) Charitable Trust, Jodhpur, filed an appeal before the Income Tax Appellate Tribunal against the order dated 27.03.2024 passed by the Commissioner of Income Tax (Exemption), Jaipur, whereby the application of the trust for approval under Section 80G(5) of the Income-tax Act was rejected as non-maintainable on account of delay. During the pendency of the appeal, the assessee filed a written application dated 05.01.2026 stating that subsequent to filing the appeal, the trust had been granted approval under Section 80G(5) by the CIT (Exemption), Jaipur vide order dated 27.12.2024. In view of the subsequent grant of approval, the assessee requested withdrawal of the appeal. The Departmental Representative raised no objection to the request.

Issues Involved

Whether the appeal challenging rejection of approval under Section 80G(5) survives for adjudication once the approval has subsequently been granted by the CIT (Exemption), and whether the appeal is liable to be dismissed as withdrawn.

Petitioner’s Arguments

The assessee submitted that since the approval under Section 80G(5) had already been granted by the competent authority after filing of the appeal, the grievance raised in the appeal no longer survived. Accordingly, the assessee sought permission to withdraw the appeal.

Respondent’s Arguments

The Revenue, through the Departmental Representative, stated that it had no objection to the withdrawal of the appeal by the assessee.

Court Order / Findings

The ITAT Jodhpur noted that the assessee had subsequently been granted approval under Section 80G(5) by the CIT (Exemption), Jaipur and that the appeal filed against earlier rejection had therefore become infructuous. The Tribunal observed that the request for withdrawal was genuine and that the Revenue had no objection to the same. Accordingly, the Tribunal accepted the request of the assessee and permitted withdrawal of the appeal.

Important Clarification

The Tribunal clarified that where an assessee receives complete relief subsequent to filing of an appeal, the appeal becomes infructuous and can be dismissed as withdrawn. Judicial time should not be spent on adjudicating issues that no longer survive.

Final Outcome

The appeal filed by the assessee was dismissed as withdrawn. The challenge to rejection of approval under Section 80G(5) was rendered infructuous in view of subsequent grant of approval by the CIT (Exemption), Jaipur.

Link to Download Order- https://www.mytaxexpert.co.in/uploads/1768993923_SHRICHAMPALALSHANTIDEVILADDARMAHESHWARICHARITABLETRUSTJODHPUR.pdf

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