DIL SE FOUNDATION,KANDIVALI WEST,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI, CUMBALLA HILL, MUMBAI

At the outset, the Ld. Counsel for the assessee submitted that there is a delay of 60 days in filing the present appeal. It was submitted that the assessee had entrusted the entire matter before the Ld. CIT(Exemption) to its then tax consultant with a bona fide belief that the proceedings were being properly attended to. However, the said tax consultant neither informed the assessee about the notices issued during the course of proceedings nor communicated the passing of the impugned order. Consequently, the assessee remained unaware of the rejection of its application and, therefore, could not file the appeal within the prescribed period of limitation. It was further submitted that immediately upon acquiring knowledge of the impugned order, the assessee disengaged the earlier tax consultant, appointed another tax consultant, collected the relevant records and thereafter filed the present appeal without any further delay. In support thereof, an application for condonation of delay along with a duly sworn affidavit of the Trustee has also been placed on record.

We have considered the explanation furnished in the application for condonation of delay as well as the affidavit

On merits, the Ld. Counsel for the assessee submitted that the impugned order has been passed ex parte solely on account of non-compliance with the notices issued by the Ld. CIT(Exemption). It was submitted that such non-compliance was neither deliberate nor intentional but had occurred because the earlier tax consultant failed to communicate the notices as well as the progress of the proceedings to the assessee. It was further submitted that the assessee is a charitable trust and possesses all the requisite documents and evidences necessary for consideration of its application under section 12AB. It was, therefore, pleaded that in the interest of justice, one effective opportunity may be granted and the matter may be restored to the file of the Ld. CIT(Exemption) for fresh adjudication on merits.

The Ld. Departmental Representative supported the impugned order. However, he fairly submitted that in the event the matter is restored to the file of the Ld. CIT(Exemption), appropriate directions may be issued to the assessee to extend full cooperation in the proceedings and not to seek unnecessary adjournments.

We have carefully considered the rival submissions and perused the material available on record, including the impugned order. It is noticed that upon verification of the application in Form No. 10AB, the Ld. CIT(Exemption) observed that the application was incomplete and certain documents required under Rule 17A(2), including a note on the activities of the trust and other supporting documents, had not been furnished. Accordingly, notices dated 25.09.2025, 13.10.2025 and thereafter a final opportunity dated 24.10.2025 were issued calling upon the assessee to furnish the requisite details. Since there was no compliance, the Ld. CIT(Exemption) recorded that he was unable to satisfy himself regarding the objects of the trust, the genuineness of its activities and the fulfilment of the statutory conditions contemplated under section 12AB and, consequently, rejected the application for registration solely on account of such non- compliance. The explanation now furnished before us is that the notices issued during the proceedings as well as the

Accordingly, in the interest of substantial justice and fair play, we set aside the impugned order and restore the matter to the file of the Ld. CIT(Exemption) for adjudication afresh. The Ld. CIT(Exemption) shall afford the assessee a proper and effective opportunity of hearing, permit it to furnish all requisite documents, explanations and evidences in support of its application under section 12AB, and thereafter pass a fresh speaking order in accordance with law after examining the application on its own merits, uninfluenced by any observations contained in the impugned order. We also direct the assessee to extend full cooperation in the remand proceedings by promptly complying with all notices and requisitions issued by the Ld. CIT(Exemption) and not to seek unnecessary adjournments. It is made clear that if the

In the result, the delay in filing the appeal is condoned and the appeal of the assessee is allowed for statistical purposes.