D vs. WELFARE FOUNDATION,THANEVS.INCOME TAX OFFICER, EXEMPTION WARD, THANE

ITA 6191/MUM/2026Status: DisposedITAT Mumbai12 October 2026AY 2025-269 pages
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What did the Tribunal hold?

The Tribunal condoned the delay of 417 days in filing the appeal before it, finding the reasons provided by the assessee, including director disputes, new appointments, and medical issues of the director handling the matters, to be reasonable and sufficient. The Tribunal relied on the Supreme Court's decision in Collector, Land Acquisition, Anantnag & Anr. v. Mst Katiji & Ors. and the Madras High Court's decision in Sreenivas Charitable Trust, emphasizing a pragmatic approach to substantial justice over technicalities. The Tribunal also noted the absence of a counter-affidavit from the revenue opposing the delay condonation. On the merits of the case concerning the 59-day delay in filing the application for regularization of provisional registration, the Tribunal found the reasons, primarily management issues leading to director resignations, to be bonafide. Citing decisions of coordinate benches, including Narke Green Foundation Charitable Institution, the Tribunal emphasized the need for a flexible and pragmatic approach to procedural laws to avoid injustice. The Tribunal restored the application for regularization of provisional registration to the file of the CIT(E) to be considered as filed in time and decided on merits. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, DVS Welfare Foundation, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai Bench, against an order dated January 28, 2025, passed by the learned Commissioner of Income Tax (Exemptions) [CIT(E)], Mumbai. The appeal challenges the rejection of the assessee's application for regularization of provisional registration under Section 12AB of the Income Tax Act, 1961. The application was filed on August 28, 2024, which was 59 days beyond the extended due date of June 30, 2024. The ITAT noted that the present appeal itself was delayed by 417 days, having been filed on May 22, 2026, against the CIT(E)'s order dated March 31, 2025. The assessee attributed these delays to internal disputes among directors, resignations, appointment of new directors, lack of handover of documents, and medical issues faced by the Managing Director.

What were the issues?

1. Whether the delay of 417 days in filing the appeal before the ITAT against the order of the CIT(E) should be condoned, considering the reasons provided by the assessee (mixed question of law and fact, relying on Section 253 of the Income Tax Act, 1961). 2. Whether the delay of 59 days in filing the application for regularization of provisional registration under Section 12AB should be condoned, considering the reasons provided by the assessee (mixed question of law and fact, relying on Section 12AB read with Section 12A(1)(ac)(iii) of the Income Tax Act, 1961). Assessee's Contentions: The assessee argued that the delays were due to bonafide reasons and compelling circumstances beyond their control, including director disputes, resignations, non-handover of documents by previous directors, and serious medical issues of the Managing Director. They also cited their lack of familiarity with income tax laws and the desertion by their Chartered Accountant. The assessee relied on the principles laid down by the Supreme Court in Collector, Land Acquisition, Anantnag & Anr. v. Mst Katiji & Ors. (1987) 167 ITR 471 (SC) and the Madras High Court in Sreenivas Charitable Trust (2006) 280 ITR 357 (Mad) for liberal interpretation of 'sufficient cause'. They also referred to ITAT Mumbai Bench decisions in Amba Shanti Foundation vs. CIT (Exemption) and Shamkris Charity Foundation vs. CIT (Exemption). Revenue's Contentions: The learned CIT DR vehemently opposed the condonation of the delay.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac)(vi),Section 12A(1)(ac)(iii),Section 253

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “D”, MUMBAI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI RAKESH KUMAR LODHA

For Appellant: Shri Prakash
For Respondent: Shri Sandeep Lakra
Hearing: 23.09.2026Pronounced: 12.10.2026

PER : Shri Rakesh Kumar Lodha, Accountant Member: These appeal has been filed by the Assessee against the order dated 28th January, 2025, passed by the Learned Commissioner of ITA NO.6191 MUM 2026 DVS WELFARE FOUNDATION Income tax (Exemptions), [“Ld. CIT (E)”] Mumbai, under Section 12AB of Income Tax Act, 1961 (“the Act”).

2.

The Assessee has raised the following grounds of appeal :

1.

0 On facts and circumstances of the case and in law, the Ld. CIT- (Exemption) erred in rejecting the application filed u/s 12A for regularisation of the provisional registration granted u/s 12AB r.w.s. 1

The order continues below.

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