SHREE RAMMANDIR DEVNAYAKACHARYA DE vs. THAN MUMBAI ,MUMBAIVS.EXEM. WARD 2(3), MUMBAI, MUMBAI

This appeal filed by the assessee is directed against the order dated 19.04.2023 passed by the learned Commissioner of Income Tax (Exemptions), Mumbai [“Ld. CIT(E)”], rejecting the assessee’s application in Form No. 10AB for registration under section 12AB of the Income-tax Act, 1961 (“the Act”).

The effective grievance of the assessee is that the Ld. CIT(E) erred in rejecting the application for registration merely on account of non- compliance with the notices and non-furnishing of the requisite documents.

The appeal is filed belatedly. The assessee has filed a condonation petition supported by an affidavit, explaining that the registration proceedings were being handled by its accountant in coordination with the tax consultant. The trustees, being senior citizens and not conversant with the procedural requirements, were unaware of the rejection order. They came to know about the order only upon receipt of a notice of demand, by which time the accountant had left his employment. On obtaining professional advice, the present appeal was filed.

We have considered the explanation furnished by the assessee. The delay does not appear to be deliberate or attributable to any mala fide intention. The explanation is supported by an affidavit and its contents have not been controverted by the Revenue. Therefore, in the interest of substantial justice, the delay of 1009 days is condoned and the appeal is admitted.

Brief facts are that the assessee is a religious and charitable trust established in the year 1954. It was granted provisional registration under section 12AB and thereafter filed Form No. 10AB on 30.10.2022 seeking regular registration. The Ld. CIT(E) issued notices dated 16.03.2023 and 08.04.2023 calling for the documents prescribed under Rule 17A(2). Since there was no compliance, the application was rejected without examining the objects and activities of the assessee on merits.

The Ld. Authorised Representative submitted that the non- compliance occurred due to the failure of the accountant handling the matter. The assessee is now ready to furnish all the relevant documents 2

We have considered the rival submissions and gone through the material placed before us. The application was rejected solely for want of compliance and the objects and genuineness of the activities of the assessee were not examined on merits. Considering the explanation furnished by the assessee and in the interest of substantial justice, we deem it appropriate to grant one more opportunity to the assessee.

Accordingly, the impugned order is set aside and the matter is restored to the file of the Ld. CIT(E) for fresh adjudication in accordance with law, after granting reasonable opportunity of being heard to the assessee. The assessee is directed to furnish all the requisite documents and extend full cooperation without seeking unnecessary adjournments. We have not expressed any opinion on the merits of the application.

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