SHRI DIGAMBA JAIN SAMAJ, DIGAMBAR JAIN MANDIR, LALTARO PUL,HARIDWAR-249401,UTTARKHAND,PAN-AARAS1307C,HARIDWAR vs. COMMISSIONER OF INCOME TAX (EXEMPTION), LUCKNOW, LUCKNOW

PDF · subscribers
ITA 80/DDN/2026Status: DisposedITAT Dehradun30 June 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that authorities have inherent powers to condone procedural delays. While Section 12A(1)(ac) specifies timelines, the rejection of an application solely on delay can lead to significant consequences. The Tribunal noted that recent amendments recognize the power to condone delay, which was already an inherent power.

What were the facts?

The assessee's application in Form 10AB for registration under Section 12A(1)(ac)(iii) was rejected due to a delay of 340 days in filing. The assessee claimed to be under the impression that no further action was needed after obtaining provisional registration and lacked professional assistance.

What were the issues?

Whether a delay in filing Form 10AB for registration under Section 12A(1)(ac)(iii) can be condoned by the Income Tax authorities, and if so, whether the application should be restored for fresh consideration on merits.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH, DELHI

Before: SHRI ANUBHAV SHARMA & SHRI SANJAY AWASTHIShri Digamba Jain Samaj,

For Respondent: DR (VC)
Hearing: 24.06.2026Pronounced: 30.06.2026

P a g e | 1 ITA No.80/Del/2026 Shri Digamba Jain Samaj IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, DELHI

BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No.80/DDN/2026 (Assessment Year: …….)

Shri Digamba Jain Samaj, Vs. CIT(Exemption) Digambar Jain Mandir, Lucknow Laltaro Pul, Haridwar- 226001 Uttar Pradesh 249401 Uttar Pradesh स्थायीलेखासं./जीआइआरसं./PAN/GIR No: AARAS1307C Appellant .. Respondent

Appellant by : Sh. Anil Kumar Jain, CA Respondent by : Sh. Amar Pal Singh, Sr. DR (VC)

Date of Hearing 24.06.2026 Date of Pronouncement 30.06.2026

O R D E R PER ANUBHAV SHARMA, JM:

This appeal is preferred by the Assessee against the order dated 26.12.2025 of the Commissioner of Income-tax, Exemption, Lucknow (hereinafter referred as ‘Competent Authority’) against the rejection of

P a g e | 2 ITA No.80/Del/2026 Shri Digamba Jain Samaj Form 10AB and consequent cancellation of registration granted under Section 12A(1)(ac)(iii) of the Act.

2.

On hearing both sides we find that assessee’s application in the form of Form 10AB has been rejected as not maintainable on the ground of delay in filing Form 10AB by 340 days. Ld. Counsel has submitted that assesse was in wrong impression that once provisional registration has been granted for AY: 2022-23 to AY: 2024-25 then nothing further is needed and there was no assistance of any professional available.

3.

After going through the impugned order we are of the considered view that every judicial and quasi judicial authority has inherent powers to condone delay in compliance of procedural aspects of any statue unless the limitation provision are substantive part of statue barring remedy. Further we find that under the provisions of Section 12AB or 80G of the Act, trusts or institutions seeking registration or renewal has to apply within the timelines specified in clause (ac) of Section 12A(1). However, rejection of such an application on account of delay can lead to significant consequences and permanent loss of tax-exempt status. It appears for these reasons vide amendments in the Finance (No. 2) Bill 2024, the Principal Commissioner of Income Tax (PCIT) or Commissioner of Income Tax (CIT) have been

P a g e | 3 ITA No.80/Del/2026 Shri Digamba Jain Samaj given powers to condone the delay provided there is a reasonable cause for the delay. These amendments have come into effect on 01-10-2024 but only recognize a power which was already there as inherent power with the prescribed authority. The fact that in impugned order itself it is mentioned that the time was extended by CBDT shows that the timeline provided was directory and the procedural delay could not be defeat the merits of claim of entities seeking registration or approval on the basis of charitable purposes. The provisions of registration or approval by way of Form 10AB being beneficial in nature required condoning delay wherever justified.

4.

In the light of aforesaid we are inclined to allow the appeal for statistical purposes. The issue on merits of the application are restored to the files of ld. CIT(E), where condoning the delay, afresh opportunity of hearing shall be given and order shall be passed afresh.

Order pronounced in the open court on 30.06.2026

Sd/- Sd/- (Sanjay Awasthi) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated 30.06.2026 Rohit, Sr. PS

P a g e | 4 ITA No.80/Del/2026 Shri Digamba Jain Samaj

More judgments on Section 12A(1)(ac)(iii)

All 1,616 judgments and leading authorities on Section 12A(1)(ac)(iii) →

Recent GST High Court judgments

Search GST case law →