SHRI GURU SINGH SABHA,BHILAI vs. INCOME TAX OFFICER EXEMPTION WARD 2 RAIPUR, RAIPUR

At the very outset, it is noted that the appeal is time barred by 5 days. Explaining the reasons for such delay and praying for condonation, the assessee had filed an “affidavit”, dated 09.06.2026 as well as condonation application.

We have carefully considered the contents of the condonation application a/w. affidavit and it is observed that there is no material/evidence on record filed by the Revenue to suggest malafide or deliberate conduct of the assessee for causing such delay. Further, contents of the condonation application and affidavit also do not spell out any deliberate conduct of the assessee for causing the said delay. Respectfully considering the various judicial pronouncements viz. (i) Collector, Land Acquisition Vs. Mst. Katiji & Ors, reported in 167 ITR 471 (SC); (ii) Vidya Shankar Jaiswal Vs. ITO, Ward-2, Ambikapur, Civil Appeal Nos……………../2025 [Special Leave Petition (Civil) Nos. 26310- 26311/2024, dated 31.01.2025; (iii) Jagdish Prasad Singhania Vs. Additional Commissioner of Income Tax (TDS), Raipur (C.G.), TAX

In this case, the Ld. CIT(Exemption) has held and observed as follows: “The assessee has filed application in Form 10AB for renewal of registration/approval u/s 12A(1)(ac)(ii) of the Act under the new provisions of the Income Tax Act, 1961. Notices were issued to the assessee and various details were called for, to process the application and to verify the eligibility of the assessee. The assessee has submitted the relevant documents along with its reply which have been considered and are placed on record. In this regard, on perusal of the record and reply along with submission of the assessee it is found that assessee has got provisional registration under clause (i) of first proviso to clause (23C) of section 10 of the Act, however copy of registration u/s.10(23C) of the Act obtained prior to 01.04.2021 was not submitted. Vide instant application, the assessee has sought renewal of approval u/s 12A(1)(ac)(ii) of the Act. Section 12A(1)(ac)(ii) is applicable only in cases where the assessee was already registered u/s 12A/10(23C) before 01.04.2021 and re- registered U/s 12A(1)(ac)(i) / clause (i) of first proviso to section 10(23C) of the Act under the New Regime after 01.04.2021. In this regard, assessee was show-caused as to why application filed u/s 12A(1)(ac)(ii) of the Act should not be treated as invalid rejected for being filed under wrong clause, but no reply received till date. Considering the produced documents & facts of the case, the application of the assessee for registration u/s 12A(1)(ac)(ii) of the Income Tax Act hereby rejected.”

That as evident from aforesaid, the only reason for the Ld. CIT(Exemption) to reject the application for registration u/s. 12A of the Act of the assessee was that such application was filed by the assessee as alleged in the said order in some wrong clause. The assessee had failed to provide clarification in this regard and since no submission have been filed, therefore, the application was rejected by the said authority. It is a matter of common knowledge that provisions for registration of trust and exemption provisions are extension of the Directive Principles of State Policy wherein greater objectives of the welfare State are facilitated through these charitable societies for the benefit of the public and State at large. Therefore, it is all the more necessary, principles of natural justice has to be complied with in these matters. In the order of the Ld. CIT(Exemption), there is no whisper regarding reasonable opportunity being provided to the assessee nor any evidence in this regard has been mentioned in the order of the Ld. CIT(Exemption). These facts could not be refuted by Ld. CIT-DR.

In view thereof, we set-aside the order of the Ld. CIT(Exemption) and restore the matter back to his file to provide reasonable opportunity to the assessee and then decide the matter as per law. The assesse shall also comply with the hearing notices from the Ld.CIT(Exemption) and represent the matter on merits.

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