SHIKSHAK BHARATI ,MUMBAI vs. CIT(EXEMPTION), MUMBAI

The learned Assessing Officer has erred in rejecting the application for non- submission of documents.

The learned assessing officer did not give sufficient time to reply and submit the details after the notice dated 05.10.2024 and passed the rejection order on 15.10.2024

At the outset, it was informed by the Registry that the appeal filed by the assessee was delayed by 40 days. In this regard, a request has been made by the trustee Sri Ashok Belsare for the assessee Trust for condonation of the delay in an affidavit. It is submitted that the application in Form 10AB under section 12A(1)(ac)(iv) seeking registration under section 12AB of Act on 18.04.2024.Later, additional information was sought on 16.08.2024 which was submitted on 04.09.2024. After going through the submissions, further information was sought vide notice dated 05.10.2024. Form 10AD dated 15.10.2024 rejecting the said application was issued by the officer, after only 10 days from the second notice, which was communicated to the undersigned in the email, but he missed noticing and was unaware of any such order nor did the Chartered Accountant had any indication of the same. However, it was only recently that he noticed that the order has been passed for non-compliance. There is a delay in filing of the appeal but there was no deliberate attempt not to file the appeal which was filed as soon as he came to know about the order.

On careful consideration of the above submissions, we are of the considered opinion that the delay in filing of the present appeal was not intentional but due to certain mis-communication only. Such a bonafide lapse needs to be condoned in the interest of justice. In this connection reliance could be placed on the landmark decision of hon'ble Supreme Court which inter alia held in Collector, Land Acquisition v Mst. Katiji And Others- 167 ITR 471 (SC) that “ordinarily, a litigant does not stand to benefit by lodging an appeal late........Refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated....Any appeal or any application, other than an application under any of the provisions of Order XXI of the Code of Civil Procedure, 1908, may be admitted after the prescribed period if the appellant or the applicant satisfies the court that he had sufficient cause for not preferring the appeal or making the application within such period.... A litigant does not stand to benefit by resorting to delay. In fact, he runs serious risk." Accordingly, we condone the delay and take up the appeal for adjudication.

Briefly stated facts are that the assessee Trust sought registration u/s 12AB of the Act. On verification of its application in Form 10AB filed by the assessee, it was noticed by the ld.CIT(E) that the application was not complete and all the documents required to be accompanying the application were not furnished. Hence, a notice was issued to the it requesting to furnish the complete set of documents mentioned in Rule 17A(2). In response the assessee made certain submissions. Further information was sought which the assessee did not comply. It is stated that registration under section 12AB is to be granted in terms of the provisions of section 12AB(1)(b) of the Act after being satisfied about the objects of the trust or institution, the genuineness of activities, and the compliance of any other law for the time being in force as are material for the purposes of achieving its objects. In the absence of necessary compliance by the applicant, he was unable to arrive at a satisfactory conclusion on these parameters. Consequently, the application was rejected.

It is observed from the impugned order that the ld.CIT(E) rejected its application on the ground of part compliance and also due to time barring constraints. He could not adjudicate the issues involved. It is equally true that it is the fundamental duty of the assessee to diligently pursue the proceedings and comply with the notices and proceedings initiated by the Revenue authorities.