MATTAPALLI LAKSHMINRUSIMHA VEDA SMARTHA PATASALA,NALGONDA vs. CIT(EXEMPTION), HYDERABAD

ITA 2205/HYD/2025Status: DisposedITAT Hyderabad23 September 2026AY 2025-2615 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay of 313 and 285 days in filing the appeals, subject to a cost of Rs. 2,500/- in each appeal (total Rs. 5,000/-) payable to the ITAT Tax Bar Association, Hyderabad, within 30 days. The Tribunal found that the applications were rejected summarily for want of complete information, despite the assessee furnishing substantial documents like the Trust Deed and financial statements. The Tribunal noted that even if more information was required, the assessee ought to have been given a proper opportunity. The CIT(E)'s rejection for not responding to the last notice was considered a summary dismissal. Therefore, in the interest of justice, the impugned orders were set aside, and the matters were remanded to the CIT(E) for reconsideration. The assessee was granted one more opportunity to furnish all relevant information, details, and evidence, and was assured of adequate opportunity of hearing before fresh orders are passed. The appeals were allowed for statistical purposes.

What were the facts?

The assessee, Mattapalli Lakshminrusimha Veda Smartha Patasala, filed appeals against two orders dated 26.11.2024 and 12.12.2024 passed by the CIT (Exemption), Hyderabad. These orders rejected the assessee's applications for registration under Section 12AB and approval under Section 80G(5) of the Income Tax Act, 1961, for Assessment Year 2025-2026. The appeals were filed with a delay of 313 days and 285 days, respectively. The assessee attributed the delay to the trustees being senior citizens, not conversant with legal provisions, and a bonafide belief that issues could be resolved administratively. The Secretary, who managed tax matters, was also unwell. The revenue opposed the condonation of delay, stating no reasonable cause was shown.

What were the issues?

1. Whether the delay in filing the appeals for registration under Section 12AB and approval under Section 80G(5) of the Income Tax Act, 1961, should be condoned, and if so, on what grounds? - Assessee's contention: The delay was due to bonafide mistakes, lack of technical knowledge among senior trustees, and the ill health of the Secretary overseeing tax matters. They believed administrative representations could resolve the issue, only realizing later that an appeal was necessary. Reliance was placed on the principle of substantial justice over technicalities. - Revenue's contention: The assessee failed to explain any reasonable or sufficient cause for the inordinate delay. 2. Whether the CIT(E) was justified in rejecting the applications for registration under Section 12AB and approval under Section 80G(5) without proper examination and opportunity? - Assessee's contention: The CIT(E) rejected the applications without examining the details on record, failed to appreciate that substantial charitable activities were conducted, and the orders were bald, non-speaking, and violated natural justice by not issuing a show cause notice or providing an opportunity to present their case. They argued there is no statutory requirement for a substantial quantum of expenditure for approval. - Revenue's contention: Not recorded.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G(5),Section 12A,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD

Before: SHRI VIJAY PAL RAO & SHRI MANJUNATHA G.

For Respondent: DR Seema Meena
Pronounced: 23.09.2026

PER SHRI VIJAY PAL RAO, VICE PRESIDENT:

These two appeals by the assessee are directed against two separate Orders dated 26.11.2024 and 12.12.2024 of the ld. CIT (Exemption), Hyderabad, whereby the application of the assessee for registration u/sec.12AB as

The order continues below.

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