SHRI GANGADAS GAU SEVA SAMITI POH DHAM BACHHWARI,POH DHAM BACHHWARI vs. CIT EXEMPTION JAIPUR, CIT EXEMPTION JAIPUR

At the outset, we note that the appeal is barred by limitation by 365 days. The assessee has filed a petition seeking condonation of the delay. The petition is supported by an affidavit sworn in Hindi by Shri Ramniwas, Chairman of the assessee-society.

In the condonation petition, it is stated that the impugned order was passed on 19.05.2023 and the appeal was filed on 18.07.2024. The assessee has explained that no physical communication of the order was received at its registered office. The society is situated in a rural area and its office-bearers are honorary workers who are not conversant with computers, email or modern digital modes of communication.

In the supporting affidavit, the Chairman has stated that, owing to financial constraints, he had limited formal education and is unfamiliar with computer-based and email communications. He has further stated that neither he nor the registered office of the society received any communication concerning rejection of the application. According to him, when the tax consultant was subsequently requested to check the portal in connection with filing the income-tax return, the consultant informed him that the application for registration had been rejected and

We have considered the petition, the Hindi affidavit and the surrounding circumstances. The delay of 365 days is substantial and, therefore, cannot be condoned as a matter of course. Nevertheless, the explanation is supported by a sworn affidavit and is consistent with the date of communication disclosed in Form No. 36. The assessee acted within two days of the stated date of communication. Nothing has been placed before us to show that the delay was deliberate, mala fide or intended to secure any advantage. Having regard to the rural location of the society, the limited familiarity of its honorary office-bearers with electronic communication and the prompt filing after actual knowledge, we are satisfied that sufficient cause has been shown.

The learned DR did not raise any objection to the condonation of delay.

Accordingly, the delay of 365 days is condoned and the appeal is admitted for adjudication on merits.

The learned CIT(E) issued a notice dated 24.03.2023 requiring the assessee to furnish the prescribed documents and explanations by 10.04.2023. As no compliance was made, a reminder dated 17.04.2023 was issued requiring compliance by 25.04.2023. Thereafter, one final opportunity was granted through notice dated 28.04.2023 fixing

The learned CIT(E) rejected the application on three grounds. First, Form No. 10AB was treated as incomplete because the assessee had not furnished the note on its activities required under rule 17A(2)(k). Second, the assessee failed to establish registration under the Rajasthan Public Trust Act, 1959. Third, in the absence of the list of donors, bills and vouchers of expenses, photographs of activities, details of social- media or digital presence and bank-account particulars for the preceding three years, the genuineness of the activities could not be verified.

Aggrieved by the order dated 19.05.2023, the assessee has preferred the present appeal.

At the time of hearing, the learned AR reiterated the grounds of appeal and the explanation furnished in the condonation petition and the supporting affidavit. He submitted that the notices issued in the registration proceedings had not come to the knowledge of the office- bearers and, therefore, the assessee could not make the requisite

The learned DR relied upon the impugned order and submitted that the assessee had failed to comply despite three opportunities. He further submitted that the registration certificate now produced by the assessee was not available before the learned CIT(E) and, therefore, the same, together with the assessee’s eligibility for registration under section 12AB, requires verification and examination by the learned CIT(E) on merits and in accordance with law.

We have considered the rival submissions and perused the material placed on record. It is undisputed that the assessee did not comply with any of the three notices issued by the learned CIT(E). Consequently, the note on activities and the documents required for

The assessee has now placed on record a copy of the registration certificate issued under the Rajasthan Public Trust Act, 1959. The said certificate was not available for examination before the learned CIT(E). Its authenticity, effective date, validity and applicability to the assessee, as well as its effect upon the assessee’s application for registration under section 12AB, therefore, require verification by the learned CIT(E).

The explanation furnished for the earlier non-compliance is substantially the same as the explanation offered for the delay in filing the appeal, namely, lack of actual knowledge of the electronic communications and the limited familiarity of the office-bearers with digital modes. The learned AR has now given a categorical undertaking that the assessee will comply fully with the notices and furnish all the information, explanations and supporting documents required by the learned CIT(E).

The learned CIT(E) shall verify the registration certificate produced by the assessee under the Rajasthan Public Trust Act, 1959, including its authenticity, effective date and validity. The learned CIT(E) shall also issue an appropriate notice specifying the information, documents and explanations required from the assessee. The assessee shall comply within the prescribed time and furnish a complete note on its activities, the list of donors, bills and vouchers, photographs and other evidence relating to its activities, bank-account particulars, relevant digital or social-media details, annual accounts, governing documents and every other document required under rule 17A or otherwise considered necessary for examining its objects and the genuineness of its activities.

This relief is granted as a final opportunity in view of the undertaking furnished before us. The assessee shall extend full cooperation and shall not seek unnecessary adjournments. If the assessee fails to comply with the notice without sufficient cause, the learned CIT(E) shall be at liberty to decide the application on the basis of the material available on record. The learned CIT(E) shall afford a reasonable opportunity of being heard to the assessee and thereafter pass a speaking order in accordance with law. We have not expressed any opinion on the merits of the application.

Accordingly, the grounds raised by the assessee are restored to the file of the learned CIT(E) and are treated as allowed for statistical purposes.