SHRI KABIRPANTHI GADI ,GUJARAT vs. INCOME TAX WARD-2 EXEPMTION, GUJARAT

The assessee’s appeal was filed belatedly before the NFAC. The delay was of nearly five years as the intimation u/s. 143(1), which was under challenge, was passed on 26/08/2020 and the appeal was filed on 14/11/2025. The assessee had sought condonation of delay before the NFAC and filed an affidavit stating that the circumstances that led to the delay.

In the statement of facts filed before the NFAC, the assessee, a Charitable Trust, stated that the return for Asst. year 2019-20 was filed belatedly u/s. 139(4) on 23/06/2020 because the Trustee of the assessee Trust were very old and so was the Accountant who was also affected by Corona Virus and therefore unable to complete the audit of the trust in time. The assessee field its return of income and Form 9A on 23/06/2020, the intimation u/s. 143(1) was issued on 26/08/2020 disallowing the claim for exemption on account of deemed application of income for charitable purposes as per clause (2) of Explanation 1 to Section 11(1). The amount of disallowance was Rs.2,01,00,000/- and the only reason for the disallowance was that the Form No. 9A was furnished late.

In appeal, the Ld. ADDL/JCIT- (Appeals)-2, Pune discussed the issue of condonation of delay quite elaborately and held that the delay of 1876 days in filing of appeal was not condoned, as no sufficient cause was shown by the assessee. Since the delay was not condoned, the Ld. CIT(A) did not deal with the merits of the appeal and treated the appeal as dismissed in limine.

The assessee has preferred the present appeal against this order on the following two grounds: 1. The Learned CIT(A) has erred in not decide the appeal on merits, since the disallowance is only on technical reasons for not filing the Form No. 9A within time limit as provided u/s. 139(1), it is 2 procedural delay and for that legitimate claim should not be denied. 2. The Learned CIT(A) has erred in dismiss our appeal on the ground of Delay in filing of appeal by not condoning the delay. He also erred in not appreciating the facts that the Trustee is aged and illiterate also corona period was there and hence the delay is happened.

At the time of hearing, no one appeared on behalf of the assessee. There is an application dated 24/08/2026 seeking adjournment on the ground that the Counsel engaged by the assessee was having high fever and unable to appear. The affidavit filed by the assessee seeking condonation of delay has been reproduced in the impugned order. The Trustee of the assessee has claimed to be an old and uneducated person who was dependent on the Accountant for the preparation of accounts, audit and filing of return. The said accountant was also an elderly person having health issues at the relevant time, which resulted in delay in finalization of accounts and filing of return. Subsequently, the said accountant died out of ill-health and as a result of his death, the Trustees had no information about intimation u/s. 143(1) and the need for filing an appeal. It was much later that the assessee contacted another advisor and based on his advice filed the appeal.

When seen in the context of the claim and its disallowance in the intimation u/s. 143(1), we notice that the assessee’s claim has been denied for a technical breach of filing Form 9A after the due date of filing of return. The said Form, however was filed along with the return and was available with the CPC on the date of the intimation u/s. 143(1) of the Act.

In this view of the matter, we are inclined to accept the assessee’s plea for condonation of delay on the ground that the claim for exemption has been disallowed in the entirety and the assessee was prevented from filing an appeal largely due to ignorance of the fact that the disallowance have been made, and the death of its regular Accountant. We are therefore inclined to restore the matter to the file of JAO for adjudication on merits of the claim in accordance with law and available judicial precedents.

In the result, the appeal of the Assessee is treated as allowed for statistical purpose.