Loading judgment…
Facts
The assessee, a charitable trust, filed an application for approval under Section 80G(5)(vi) of the Act. Due to internal conflicts, the trust failed to respond to notices issued by the CIT(E), leading to the rejection of their application. The appeal was filed with a significant delay of 1404 days.
Held
The Tribunal condoned the delay in filing the appeal, acknowledging a reasonable cause due to the trust's internal turmoil and the treasurer's health issues. The order of the CIT(E) was set aside, and the application was restored for fresh consideration with a direction to issue notices and provide an adequate opportunity to the assessee.
Key Issues
Whether the delay in filing the appeal was justifiable and whether the assessee should be granted another opportunity to present their case before the CIT(E) after being rejected ex-parte.
Sections Cited
80G(5)(vi), 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA
आदेश /O R D E R
PER S. R. RAGHUNATHA, AM :
This appeal by the assessee is filed against the order of the Commissioner of Income Tax (Exemption), Chennai, vide order dated 31.03.2021.
At the outset, we find that there is a delay of 1,404 days in appeal filed by the assessee, for which Affidavit and petition for condonation of delay along with reasons for delay has been filed. The ld.AR for the assessee in the condonation petition has stated that the communication of the order was sent to the email id of the then treasurer i.e. ‘velbalamurali@yahoo.co.in’ who underwent pacemaker implant on account of which the assessee trust could not act upon
:-2-: ITA. No:987/Chny/2025 the impugned order immediately. Apart from that the ill health of the mother of the Chartered Accountant Mr.C.N.Vishwanathan which resulted in her demise. The ld.AR further submitted that the delay is also on account of the resignation of Vice Chairman of the Board which led to internal conflicts, chaotic situation between the managing trustees due to which the matters of the Trust was never attended to and the Trust was also facing several difficulties to manage the day- to-day affairs. The situation in the Trust was normalized after conducting a trust board meeting on 01.03.2025 with various stakeholders where the affairs of the Trust was revised after which with the help of the Counsel on Record, the present appeal was filed belatedly with a delay of 1404 days. Hence, there was a delay in filing the appeal by the assessee. After considering the affidavit and petition filed by the assessee and also hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone the delay in filing of appeal and admit the appeal filed by the assessee for adjudication.
Brief facts are that the assessee is a charitable trust filed an application in Form 10G on 17.03.2020 seeking approval u/s.80G(5)(vi) of the Act. For the purpose of processing the application certain particulars were called for by issuing a letter dated 29.07.2020 and 11.09.2020 to the assessee through E- filing portal. The assessee did not respond to the notices and hence the ld.CIT(E) once again issued notices on 06.11.2020 and 09.01.2021 and still the assessee chose to be silent. Therefore, the ld.CIT(E) rejected the application dated 17.03.2020 due to non- participation of the assessee in the proceedings by passing an order dated 31.03.2021.
:-3-: ITA. No:987/Chny/2025
Aggrieved by the order of the ld. CIT(E) the assessee is in appeal before us.
The ld.AR for the assessee submitted that the assessee is a charitable trust registered u/s.12A of the Act and filed an application on 17.03.2020 seeking approval u/s.80G(5)(vi) of the Act. However, due to internal conflicts, chaotic situation between the managing trustees due to which the matters of the Trust were never attended by participating in the proceedings. Therefore, the ld.AR prayed for one more opportunity before the ld.CIT(E) by setting aside the order of the ld.CIT(E).
Per contra, the ld.DR relied on the order of the ld.CIT(E) and prayed for confirming the order since the assessee had not participated or responded to the notices.
We have heard the rival contentions, perused the materials available on record and gone through the order. We find that the Ld.CIT(E) rejected the application by passing an exparte order due to non-participation of the assessee and hence the assessee needs to be given one more opportunity in the interest of natural justice.
Therefore, keeping in mind the principles of natural justice and fair play, we set aside the order of ld.CIT(E) and restore the application filed seeking approval u/s.80G(5)(vi) of the Act, back to the file of the Ld.CIT(E) with a direction to send notices on the assessee afresh through registered email ID, e-portal or as per provisions of the Act and pass speaking order after giving adequate opportunity to the assessee as per law. Needless to say the :-4-: ITA. No:987/Chny/2025 assessee should be diligent in responding to the notices and furnish all the required documents during the proceedings without seeking unnecessary adjournments and providing correct address and email ID. Thus, the matter is restored to the CIT(E), Chennai. In case the assessee fails to appear then, no lenient view will be taken by the ld.CIT(E).
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the court on 15th July, 2025 at Chennai.