SHRI BHAGWAN RESHABDEV CHARITABLE TRUST,DELHI vs. ITO, WARD EXEMPTION 2(1), DELHI

The present appeal is filed by the assessee against the rejection of registration u/s 12A of the Income Tax Act, 1961 [“the Act”] order dated 29.03.2000 passed by Ld. Director of Income tax (Exemption).

Brief facts of the case are that Shri Bhagwan Rishbhdev Charitable Trust was granted registration u/s 12A of the Act vide order dated 29.03.2000 w.e.f 01.01.1999. The objects of the trust are charitable in nature and the trust is running a Dharamshala and a computer training center at Rishikesh.

The present appeal is filed delayed by 149 days for which an application for condonation of delay alongwith an affidavit of the managing trustee is filed.

At the outset, Ld. Counsel for the assessee submitted that the assessee trust was founded by Shri Jai Narayan Jain who was single handedly handling the affairs of the trust including tax matters and unfortunately passed away after prolonged illness on 27.01.2020. The trustee-in-charge after the death of Shri Jai Narayan Jain was Shri Hari Narayan Jain who also expired after a prolonged illness of 2 years on 31.07.2023. Copy of death certificates of both trustees are placed at page No.28 to 29 of the paper book. The assessee trust was fully dependent upon its tax counsel for making applications for re- registration, and after death of two main trustees, as stated above, the trustee in charge became Shri Tapan Jain. The assessee on rejection of the application filed in Form 10AB on 27.09.2023, re-filed an application for re-registration in Form 10AB on 29.09.2023. The Ld.CIT(Exemption) subsequently, in response to Form 10AB dated 29.09.2023 rejected the application for re-registration vide order dated 30.03.2024 and also cancelled the provisional registration granted on 27.05.2021 for Assessment Years 2021-22 to 2023-24 retrospectively. In the above circumstances, the assessee trust prays for condonation of delay in filing the appeal and request for granting one more opportunity to file the requisite details before the ld CIT(Exemption) for granting of the registration u/s 12A of the Act.

On the contrary, Ld. CIT DR for the Revenue opposed the submission made by the assessee and supported the order of the authorities below.

We have heard the contentions of Authorized representatives and perused the material available on record. Considering the facts placed on record, we are of the considered view that there was a reasonable cause in delay in filing the appeal before us by the assessee trust. Therefore, in the interest of natural justice and by respectfully following the judgement of Hon’ble Supreme Court in the case of Collector of Land Acquisition vs Mst . Katiji & Ors. 167 ITR 471, we condone the delay in filing the appeal before us and restore the matter to the file of Ld. CIT(Exemption) with the direction to reconsider the application for registration u/s 12A of the Act of the assessee and decide the same in accordance with law. Assessee trust is also directed to file all the details before the Ld.CIT(Exemption) in support of the registration. Thus, grounds raised by the assessee are partly allowed for statistical purposes.

In the result, the appeal of the assessee is partly allowed for statistical purposes.