NALANDA EDUCATION SOCIETY,CHHINDWARA vs. COMMISSIONER OF INCOME TAX (EXEMPTION), BHOPAL

ITA 110/JAB/2025Status: DisposedITAT Jabalpur29 September 2026AY 2024-257 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal, finding that the reasons provided by the assessee, relating to pre-board examinations, constituted a 'sufficient and bonafide cause' and were neither intentional nor deliberate, citing the jurisdictional High Court decision in 'Neel Kumar Ajmera Vs PCIT'. On the substantive issue, the Tribunal noted that the Commissioner rejected the registration application primarily due to the lack of evidential documents and the assessee's failure to explain the fulfillment of conditions for registration. However, the Tribunal observed that the non-compliance was accidental and undeliberate. In the larger interest of justice, the Tribunal decided to grant one more effective opportunity to the assessee. The impugned order of rejection was set aside, and the matter was remanded to the Commissioner of Income Tax (Exemption) for de-novo consideration. The Commissioner was directed to issue a notice for fresh consideration, allowing the assessee to furnish all required documents for verification and examination, and to provide an effective hearing opportunity. The Tribunal explicitly stated that it was not commenting on the merits of the case.

What were the facts?

The assessee, Nalanda Education Society, operating First Step English Medium School, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Jabalpur Bench, challenging an order dated 12/09/2024 passed by the Commissioner of Income Tax (Exemption), Bhopal. The Commissioner had rejected the assessee's application for registration under Section 12A(ac)(ii) of the Income Tax Act, 1961. The appeal was filed on 10/04/2025, approximately 149 days after the due date of 11/11/2024. The assessee attributed this delay to its non-teaching and administrative staff being preoccupied with pre-board examinations for Class 10th students. The Commissioner had issued multiple notices to the assessee for deficiencies in documents and compliance with other laws, which were not effectively addressed.

What were the issues?

1. Whether the delay in filing the appeal can be condoned under Section 253(1) of the Income Tax Act, 1961, based on the reasons provided by the assessee? 2. Whether the rejection of the assessee's application for registration under Section 12AB of the Act by the Commissioner of Income Tax (Exemption) was justified, considering the alleged non-compliance with document submission requirements and the assessee's prayer for a remand? Assessee's Arguments: The assessee contended that the delay in filing the appeal was accidental and undeliberate, caused by the preoccupation of staff with pre-board examinations, constituting a 'sufficient and bonafide cause'. The assessee also prayed for a remand of the matter to the Commissioner to allow them to furnish necessary documents and comply with the provisions of Section 17K read with Section 12AB, enabling a decision on merits. Revenue's Arguments: The Revenue, represented by the Ld. DR, could not effectively displace the assessee's reasons for the delay. Regarding the rejection of registration, the Revenue's position was implicitly that the rejection was justified due to the assessee's failure to comply with the notices and provide required documents.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12A(ac)(ii),Section 12AB,Section 12AB(1)(b),Section 17K,Section 253(1),Section 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JABALPUR BENCH, MP

Before: HON’BLE SHRI KUL BHARAT & SHRI G.D. PADMAHSHALI

For Appellant: Mr Dhruv Sahu [‘Ld. AR’]
For Respondent: Mr Dhananjay Wanjari [‘Ld. DR’]
Pronounced: 29/09/2026

PER G. D. PADMAHSHALI; The assessee filed present appeal challenging the DIN & Order

No. ITBA/EXM/F/EXM45/2024-25/1068604915(1) dt.

12/09/2024 passed u/s 12A of the Income Tax Act, 1961 [‘the Act’] by the Ld. Commissioner of Income Tax (Exemption),

Bhopal rejecting to grant registration u/s 12A(ac)(ii) of the Act.

ITAT-Jabalpur Nalanda Education Society Vs CIT(E)

2.

At the outset of hearing, it was submitted that, the present appeal is filed /s 253(1) of the Act on 10/04/2025 as against due date of filing expired on 11/11/2024. Thus appeal is identified as time barred by 1

The order continues below.

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