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Before: Shri V. Durga Rao & Shri Manjunatha, G.
O R D E R
PER V. DURGA RAO, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Exemptions), Chennai, dated 20.09.2019.
2. The appeal filed by the assessee is delayed by 1355 days in filing the appeal. The assessee filed petition for condonation of delay in the form of an affidavit by stating as under: 1. That I am well acquired with the facts and circumstances of the appeal filed before the Hon’ble Income Tax Appellate Tribunal.
That the Trust applied for registration u/s 12AA of the Income Tax Act, 1961 through on line application in Form 10A on 30.03.2019. The Commissioner of Income Tax has sent a notice to the petitioner to the email ID mentioned in Form 10A which is not in operation of the petitioner. The petitioner has changed the Registered Office situated at “Sree Ranga Hospital”, No. 12, Varada Reddy Street, Vedhachalam Nagar, Chengalpattu 603 001.
That the CIT Exemption has passed the ex-party order that in case of failure to respond/ non-compliance in the above mentioned three dates. 4. That the ex-party order was uploaded in the e- filing portal on 20.09.2019. 5. That against the said order, an appeal before the Hon’ble Income Tax Appellate Tribunal, Chennai is preferred. 6. That the appeal should have been filed within sixty days from the date of service of order by virtue of sub-section (3) of section 253 of the Income Tax Act, 1961. 7. That therefore, the appeal ought to have been filed on or before 19.11.2019. 8. That however, appeal was filed on 07.08.2022 i.e., with a delay of 1326 days beyond the statutory time limit allowed for filing the appeal. 9. That the Hon’ble Supreme Court vide order dated 10.01.2022 in cognizance for extension of limitation has directed to exclude the period from 15.03.2020 to 28.02.2022 for the purpose of limitation. Hence, the number of days to be excluded as per the directions of the Hon’ble Supreme Court works out to 716 days. After excluding the same, the actual number of days of delay in the instant case works out to 610 days. 10. That the said delay was neither intentional nor due to negligence but for the sufficient cause and reasons beyond the control of the petitioner, which is explained as below: 11. That The Chengalpattu Medical College old students was formed the Trust in the name of “The Chemco Alumini Trust" for the purpose of students medical relief, education to poor students in the societies.
That The petitioner, was received the ex-parte order from the Office of the Commissioner of Income Tax by post on 22.10.2019.
That the petitioner has seeking the legal advise from Mr. S. Mohan, Income Tax Practitioner at 10/ A, Vedhachalam Street, Chengalpattu during the month of November 2019. The Tax practitioner has not given proper legal advice against the order of the Commissioner of Income. 14. That Further, the petitioner has seeking the legal advice to Mr. S. Rajinikanth, Chartered Accountant practicing at Chengalpattu during first week of March 2020. The said Chartered Accountant has not given advise properly to file the appeal before the Tribunal against the ex-parte order passed by the Commissioner of Income Tax (Exemptions) holding the file long period of time up to March 2023. 15. That the petitioner was searched the Tax practitioner through various person for suitable legal advice against ex-parte order up to June 2023. 16. That On 24.07.2023, the petitioner met Shri V Padmanabhan, Chartered Accountant for assistance in filing appeal before the Hon’ble Income Tax Appellate Tribunal. On 03.08.2023, Shri V Padmanaban advised the petitioner to pay the appeal fee immediately and to hand over the papers for preparing and filing appeal. 17. That Shri V Padmanaban prepared the appeal papers and sent to the petitioner on 04.08.2023. On 06.08.2023, the petitioner signed the appeal papers and handed over to Shri V Padmanabhan for filing and the appeal was finally filed on 07.08.2022 with a total delay of 610 days excluding the COVID days. 18. That the petitioner submits that it was due to the above mentioned reasons as to why the appeal before the Hon’ble Income Tax Appellate Tribunal was filed with a delay of 610 days excluding COVID days. Further, the petitioner wishes to submit that the delay is neither intentional nor negligence but for the sufficient cause as explained above. 19. That The petitioner for these reasons and such other grounds that may be urged at the time of the hearing of this petition prays that the Hon’ble Income Tax Appellate Tribunal may be pleased to condone the delay of 610 days excluding COVID days in filing the appeal and admit the appeal filed on 07.08.2023.
That due to the above mentioned reasons as to why the appeal before the Hon’ble Income Tax Appellate Tribunal was filed with a delay of 610 days excluding COVID days. 3. We have perused the petition for condonation of delay filed in the form of an affidavit, wherein, the assessee trust has submitted that the total delay in filing the appeal was 1326 days and after excluding the Covid-19 pandemic period, the actual delay works out to 610 days. The assessee trust also explained various reasons for the delay in filing the appeal and also submitted that there is reasonable cause for the delay and the delay in filing the appeal is neither wilful nor wanton and prayed for condonation of delay and to admit the appeal for adjudication. Against the above submissions, the ld. DR has not raised any serious objection. Considering the affidavit filed for condonation of delay, we hereby condone the delay in filing the appeal and admit the appeal for adjudication.
Brief facts of the case are that the assessee trust filed an online application in Form 10A for registration under section 12AA of the Income Tax Act, 1961 [“Act” in short] on 30.03.2019. While processing the application, the ld. CIT(E) noticed that certain explanations/clarifications were required to process the application and accordingly, the assessee was requested to furnish its clarification through e-mail dated 19.07.2019 by affording three opportunities. Since there was no response from the assessee trust, the ld. CIT(E) rejected the application filed for registration under section 12AA of the Act.
On being aggrieved, the assessee is in appeal before the Tribunal. In the grounds of appeal, the assessee has sought for grant of one more opportunity for furnishing the details before the ld. CIT(E). When the appeal was taken up for hearing, none appeared on behalf of the assessee. Hence, we proceed to decide the appeal on merits after hearing the ld. DR.
We have heard the ld. DR, perused the order passed by the ld. CIT(E). In the affidavit, duly notarized, it was the submissions of the assessee trust that the ld. CIT(E) sent a notice to the petitioner trust to the email ID mentioned in the Form 10A which was not in operation of the petitioner trust and the petitioner has changed the Registered Office situated at “Sree Ranga Hospital”, No. 12, Varada Reddy Street, Vdehachalam Nagar, Chengalpattu 603 001. It was further submission in the affidavit that the assessee trust has been stated to have established for the purpose of students medical relief, education to poor students in the societies. Considering the above and to meet the ends of natural justice, we are of the considered opinion that the assessee shall be afforded one more opportunity of being heard to furnish the details as required to process the application for seeking registration under section 12AA of the Act. Accordingly, we remit the matter back to the file of the ld. CIT(E) to afford one more opportunity of being heard to the assessee to furnish complete details/clarifications as required by him and consider the same in accordance with law.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 17th October, 2023 at Chennai.