DR MOHANLAL PIRAMAL CHARITABLE TRUST,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CUMBALLA HILL MTNL BUILDING

Before us, the learned counsel for the assessee submitted that the learned CIT(E) rejected the applications solely on the ground of delay in filing Form No. 10AB without issuing any show-cause notice or affording an effective opportunity of hearing to the assessee. It was further submitted that the assessee intends to seek condonation of delay in terms of the relevant CBDT Circular/Guidelines governing delayed filing of Form No. 10AB. It was, therefore, prayed that the matter may be restored to the file of the learned CIT(E) for fresh consideration. The learned Departmental Representative fairly left the matter to the discretion of the Bench.

We have considered the rival submissions and perused the material available on record. We find that the applications have been rejected solely on the ground that Form No. 10AB was filed belatedly. It is also an undisputed position that no effective show- cause notice or opportunity of hearing was afforded to the assessee before passing the impugned orders. In our considered opinion, before rejecting an application on the ground of limitation, particularly when the issue of condonation of delay is governed by the CBDT Circulars and the assessee seeks to avail

Accordingly, in the interest of substantial justice, we set aside the impugned orders and restore both the matters to the file of the learned CIT(E). The assessee shall be at liberty to file an appropriate application seeking condonation of delay along with all supporting material. The learned CIT(E) shall consider the assessee’s request in the light of the applicable CBDT Circulars/Guidelines relating to condonation of delay in filing Form No. 10AB and thereafter decide the applications for registration under section 12AB and approval under section 80G on their own merits, in accordance with law, after affording adequate opportunity of hearing to the assessee. The assessee is also directed to extend full cooperation in the proceedings.

In the result, both the appeals of the assessee are allowed for statistical purposes.