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Facts
The assessee, a public charitable trust, had its provisional registration u/s 12AB and approval u/s 80G cancelled by the CIT(E) due to non-compliance with notices. The assessee's subsequent applications for regular registration were also rejected. The appeals were filed belatedly.
Held
The Tribunal condoned the delay due to circumstances including the death of the assessee's President. It set aside the CIT(E)'s orders, restored the matters to the CIT(E)'s file, and directed fresh adjudication with an opportunity of hearing.
Key Issues
Whether the delay in filing the appeals is reasonable and whether the orders rejecting the application for registration u/s 12AB and approval u/s 80G are sustainable.
Sections Cited
12A, 80G, 12AB, 12A(1)(ac)(iii), 12A(1)(ac)(i), 80G(5), 80G(5)(vi)
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Income Tax Appellate Tribunal, ‘D’ BENCH
Before: SHRI AMIT SHUKLA & MS. PADMAVATHY S
Assessee by Shri V.G. Ginde & Shri Kumar Kale Revenue by Smt. Sanyogita Nagpal-CIT DR Date of Hearing 27/02/2025 Date of Pronouncement 07/03/2025 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeals have been filed by the assessee against order passed by CIT(E), Pune rejecting the Registration u/s.12A and certificate u/s.80G.
The brief facts are that assessee is a Public Charitable Trust registered under Bombay Public Trust Act, 1950 under the Registration Certificate issued by Assistant Charity Rotary Association of Dombivali Saudamini Commissioner on 13/08/2019. The assessee-trust was formed to pursue various charitable objects enshrined in Clause (3) of its Memorandum of Association (MOA), such as relief to poor, education, medical relief etc.
In so far as the facts relating to are that assessee had obtained provisional registration u/s. 12AB, vide the Registration Certificate dated 10.03.2022, which was effective from A.Y. 2022-23 to Α.Υ. 2024-25. Subsequently, the assessee filed an application u/s. 12A(1)(ac)(iii) on 30/09/2023 before the Ld. CIT(E) for obtaining a regular registration u/s. 12AB. The Ld. CIT(E), vide the Order dated 01/02/2024 rejected this application because of non-compliance of the notices dated 24/11/2023 & 02/01/2024, issued by him calling for various details. As a consequence, the provisional registration u/s.12AB issued on 10/03/2022 was also cancelled by him. This appeal is preferred against the Ld. CIT (E)'s aforesaid Order dated 01/02/2024.
There is a delay of 288 days in filing this appeal before the Tribunal. The assessee has filed a sworn affidavit dated 22/02/2025 of Mrs. Jayashree Uday Karve, Treasurer of the assessee trust, explaining in detail the circumstances causing the delay, and has also prayed that the delay be condoned and the appeal be admitted for adjudication on its merits. Broadly, the reasons for the delay are as under:
Rotary Association of Dombivali Saudamini (1) The assessee was advised by its CA to file fresh application u/s. 12 rather than filing an appeal against the rejection order u/s.12AB dated 01/02/2024; (ii) The assessee filed fresh application on 30.04.2024 but inadvertently selected clause (i) instead of clause (iii) of Section 12A(1)(ac), and the Ld. CIT(E) also issued a registration certificate u/s. 12AB read with Section 12A(1)(ac)(i) dated 07/05/2024 though it was not applicable. This registration certificate dated 07/05/2024 was also cancelled by the Ld. CIT(E) in his order u/s.12AB dated 13/11/2024 referred to below; (iii) Realizing the above mistake, the Appellant filed another application u/s.12A(1)(ac)(iii) on 31.05.2024 seeking regular registration u/s. 12AB. But this application was rejected by the Ld. CIT(A) vide the Order dated 13.11.2024 for the reason that the provisional registration issued on 10.03.2022 was already cancelled vide his earlier order dated 01.02.2024, and in absence thereof, no regular registration certificate u/s. 12AB could be granted; (iv) Thereafter, the assessee approached Advocate Kumar Kale, who advised that the effective remedy is to prefer an appeal against the rejection order u/s 12AB, dated 01.02.2024 because it is in this order, the provisional registration u/s.12AB was cancelled, and in absence thereof, regular registration u/s.12AB cannot be granted. Therefore, the assessee filed this appeal against the order u/s. 12AB dated 01.02.2024, albeit belatedly.
Rotary Association of Dombivali Saudamini 5. It has been submitted that the notices were sent by e-mail to the e-mail ID of the President of the assessee trust, Mrs. Sangeeta Bagul, who was unable to attend to the same due to her illness as she was undergoing medical treatment for breast cancer at the relevant time. Eventually, she passed away on 02/01/2025. Copies of her medical case papers as well as the death certificate have been placed at pp.8-13 of the Paper Book. Thus, it has been submitted that the non-compliance of these notices was due to above circumstances, and it was purely unintentional. Under these circumstances we find it there was a reasonable cause in not able to file the appeal in time. Further, assessee could not attend to the notices issued from the office of CIT (E) as it was sent on personal email of the President of the assessee trust and due to her terminal illness the notice went unnoticed, accordingly the order u/s.12AB dated 01/02/2024 passed by ld. CIT (E) is set aside and is restored back to him for deciding it afresh, after considering the assessee’s application and giving due opportunity of hearing to the assessee.
In so far as facts relating to appeal in is that, this appeal has been filed against order dated 01/02/2024 passed by ld. CIT(E) rejecting the application u/s.80G(5). The assessee had obtained provisions approval u/s. 80G(5)(vi) on 14/03/2022, which was effective from A.Y. 2022-23 to A.Y. 2024-25. In order to obtain a regular approval, the assessee had filed fresh application u/s. 80G(5) on 30/09/2023 along with the application for registration u/s.12AB. Here in this case also assessee could not reply to the Rotary Association of Dombivali Saudamini notices issued from the office of the ld. CIT(E) for the reasons mentioned above and accordingly, he has passed exparte order dated 01/02/2024 rejecting the application and also cancelling the provisional approval granted earlier on 14/03/2022. There has been delay in filing of appeal of 280 days which is identical to the facts and circumstances mentioned in the aforesaid appeal. Accordingly, the delay is condoned and the matter is restored back to the file of the ld. CIT(E) to decide the issue on merits after giving due opportunity of hearing to the assessee.
In so far as appeal in is concerned, this is against order u/s 12AB dated 13.11.2024 passed by the Ld. CIT (E), rejecting the assessee's fresh application u/s.12A(1)(ac)(iii) filed on 31.05.2024. The Ld. CIT (E) rejected this application because the provisional registration u/s.12AB dated 10/03/2022 was already cancelled and in absence thereof, no registration u/s.12AB could be granted.
Once we have set aside the order u/s.12AB dated 01/02/2024 wherein its provisional registration u/s.12AB dated 10/03/2022 has been cancelled then, the very basis of 12AB order dated 13/11/2024 will not survive and become infructuous. Since we have already restored the matter to the file of the ld. CIT (A) to decide the issue of registration of 12AB, therefore, this appeal is infructuous, however, the ld. CIT(E) will decide assessee’s application filed on 30/09/2023 and accordingly, this appeal is also set aside and ld. CIT(E) may decide accordingly.
Rotary Association of Dombivali Saudamini 9. Lastly, with regard to appeal in is against the Order u/s u/s.80G(5) dated 13/11/2024 passed by the Ld. CIT(E), rejecting the assessee's fresh application u/s.80G(5) filed on 31/05/2024. The Ld. CIT (E) rejected this application because the provisional approval u/s.80G(5)(vi) dated 14/03/2022 was already cancelled by his order dated 01/02/2024, and in absence thereof, no approval u/s.80G(5) could be granted. Once we have set aside the order u/s. 80G(5) dated 01/02/2024 wherein its provisional approval u/s.80G(5) dated 14/03/2024 has been cancelled and since we have remanded back the issue to the file of the ld. CIT(E) then the very basis of order u/s.80G(5) dated 13/11/2024 will not survive and will become infructuous. Accordingly, the ld.CIT(E) is directed to decide all the issues afresh after considering the assessee’s submissions and decide in accordance with the law after giving due opportunity of hearing to the assessee.
In the result, all the appeals filed by the assessee are allowed for statistical purposes. Order pronounced on 7th March, 2025.