DECAN XI FOOTBALL & SPORTS FOUNDATION, PUNE,PUNE vs. CIT(EXEMPTION), PUNE, PUNE

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ITA 1960/PUN/2025Status: DisposedITAT Pune24 April 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(Exemption) has the power to condone delays if there is a reasonable cause. Given the assessee's charitable activities and the recent insertion of a proviso empowering condonation, the delay was considered excusable.

What were the facts?

The assessee, a non-profit sports foundation, applied for regular registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The application was rejected by the CIT(Exemption) primarily due to a delay in filing.

What were the issues?

Whether the delay in filing the application for regular registration under Section 12A(1)(ac)(iii) can be condoned by the CIT(Exemption) and if the assessee has demonstrated reasonable cause for such delay.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE

Before: DR.MANISH BORAD & SHRI VINAY BHAMORE

For Appellant: Shri Anand Anilkumar
For Respondent: Shri Amol Khairnar
Hearing: 25.03.2026Pronounced: 24.04.2026

PER DR. MANISH BORAD, ACCOUNTANT MEMBER :

The captioned appeal at the instance of assessee is directed against the order dated 17.06.2025 framed by ld.CIT(Exemption), Pune rejecting the assessee’s application for grant of regular registration u/s.12A(1)(ac)(iii) of the Income Tax Act, 1961 (in short ‘the Act’).

2.

The grievance of the assessee is against the rejection of application for regular registration u/s.12A(1)(ac)(iii) of the Act.

3.

At the outset, ld. Counsel for the assessee submitted that one of the main reasons for rejecting the assessee’s application is that the same was not filed within the prescribed time limit provided under the Act. He submitted that delay in filing of application for regular registration may please be condoned

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and assessee be provided one more opportunity of hearing to go before ld.CIT(Exemption) for furnishing the details in support of its application for regular registration u/s.12A of the Act and also demonstrate about the charitable activities carried out by the assessee.

4.

On the other hand, ld. DR supported the order of ld.CIT(Exemption).

5.

We have heard the rival contentions and perused the record placed before us. We observe that the assessee is a Private Limited company registered as Non-profit organisation engaged in providing sports education and training to the interested candidates at concessional rates in order to promote sports engagement in the area. Assessee has been issued provisional registration u/s.12AB of the Act for A.Y. 2021-22 to A.Y. 2023-24 vide order dated 27.05.2021. Assessee has subsequently filed application for regular registration on Form No.10AB u/s.12A(1)(ac)(iii) of the Act on 13.12.2024 but the same has been rejected by ld.CIT(Exemption) mainly on the ground of delay in filing the application.]

6.

We observe that vide Finance No.2 Act, 2024 w.e.f. 01.10.2024 a proviso has been inserted to section 12A(1)(ac) which provides that “where the application is filed beyond the time allowed in sub-clauses (i) to (vi), the Principal Commissioner or Commissioner may, if he considers that there is a reasonable cause for delay in filing the application, condone such delay and such application shall be deemed to have been filed within time”. This indicates that ld.CIT (Exemption) is now empowered to condone such delay considering the facts of 3 Deccan XI Football & Sports Foundation

the case. We also observe that the assessee is carrying out charitable activities and has furnished all necessary details to prove that the assessee is actively engaged in the charitable work and merely for such unintentional delay the assessee should not be denied the regular registration. Ld. Counsel for the assessee has successfully demonstrated that ‘reasonable cause preventing the assessee from filing the application within the stipulated time. Assessee has furnished the audited financial statements and the information about the activities carried out by the assessee by filing the paper book running into 208 pages as well as the application for admission of additional evidences.

7.

We therefore are of the considered opinion that it is a fit case to condone the delay. In view thereof and without dwelling into merits of the case, all the issues raised in the instant appeal are remitted to the file of ld.CIT (Exemption) for afresh adjudication on merits after affording reasonable opportunity to the assessee. Ld.CIT (Exemption) is directed to consider all the details/submissions to be filed by the assessee and then decide the issues in accordance with law. Assessee is directed to update latest email id and contact detail on ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and all the grounds of appeal raised by the assessee are allowed for statistical purposes.

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8.

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

Order pronounced on this 24th day of April, 2026. (VINAY BHAMORE) ACCOUNTANT MEMBER पुणे / Pune; दिन ांक / Dated : 24th April, 2026. Satish

Satish Kumar Madishetty आदेश की प्रतिलिपि अग्रेपिि / Copy of the Order forwarded to : अपील र्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.

2.3.

The Pr. CIT concerned. विभ गीय प्रतितनधि, आयकर अपीलीय अधिकरण, “A” बेंच, 4. पुणे / DR, ITAT, “A” Bench, Pune. ग र्ड फ़ इल / Guard File. 5. आिेश नुस र / BY ORDER,

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