GOVIND RAM SINDHI EDUCATION SOCIETY,LAKHIMPUR KHERI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), LUCKNOW

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ITA 464/LKW/2017Status: DisposedITAT Lucknow08 March 20194 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay, finding sufficient cause for the late filing. It held that the assessee was not given a proper and sufficient opportunity by the CIT(Exemption) before rejecting the application.

What were the facts?

The assessee's appeal against the rejection of registration under Section 12AA was delayed by 87 days due to an inadvertent omission by their accountant. The CIT(Exemption) had rejected the application for registration as the assessee failed to appear and provide required documents.

What were the issues?

Whether the delay in filing the appeal was justifiable and whether the assessee was provided with a sufficient opportunity by the CIT(Exemption) before rejecting the registration application.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW

Before: SHRI A.D JAIN & SHRI T.S. KAPOOR

For Appellant: Shri Abhinav Mehrotra, Advocate
For Respondent: Shri Sushil Kumar Madhuk, CIT DR
Hearing: 01/03/2019Pronounced: 08/03/2019

PER: A.D. JAIN, VICE PRESIDENT:

This is an appeal filed by the assessee against the order dated 10/02/2017 passed by ld. CIT (Exemption) rejecting the registration u/s 12AA of the I.T. Act.

The assessee’s appeal is delayed by eighty seven days. An 2. application for condonation of delay has been filed, accompanied by an affidavit of the Manager of the assessee society. The contents of the application for condonation of delay are as under:

“1. That the impugned order of Ld. CIT (Exemption) dt. 10.02.2017 was received by the assessee on 27.02.2017.

2 ITA No. 464/Lkw/2017

2.

That the appeal was under preparation and was ready to be filed on 25.03.2017. 3. Thai Mr. Vishal Agafwal, Accountant, under the employment of the instant assessee, was entrusted with the job of filling the appeal, however due to certain unpleasant circumstance (breverment) in the family of Mr. Vishal Agarwal, the same had to rush back to his native place and forgot to file the appeal. 4. That there being no communication available with Mr. Vishal Agarwal, the assessee remained under a bonaflde belief that that the appeal has been filed by Mr. Vishal Agarwal in due course. However upon his return and resumption of official work. Mr. Vishal Agrawl, regretfully informed that he inadvertently omitted to file the appeal. 5. That above caused a delay of approximately 87 days. This delay, caused due to the unfortunate circumstances, beyond the control of the assessee, deserves to be condoned and ii is prayed that the appeal may kindly be heard on merits.”

3.

In view of the above contents of the application for

condonation of delay, duly supported by the affidavit of the Manager

of the assessee society, it is seen that the assessee was prevented

by sufficient cause from filing the appeal in time. The delay is

inadvertent. Accordingly, the delay of eighty seven days in filing the

appeal is condoned.

4.

The facts of the case, in brief, are that the assessee society

applied for registration u/s 12A(a) of the Act with CIT (Exemption) vide

application dated 30/08/2016. The ld. CIT (Exemption) issued a letter

3 ITA No. 464/Lkw/2017

dated 05/01/2017 to the assessee calling for specific queries regarding

the application for registration u/s 12A for compliance on 10/02/2017.

However, none appeared on 10/02/2017 nor any adjournment application

was filed, therefore, ld. CIT (Exemption) rejected the application of the

assessee for registration u/s 12A(a) of the Act on the ground that sufficient

material required for formation of satisfaction has not been produced.

5.

Heard. From the order of ld. CIT (Exemption), it is apparent that

the ld. CIT (Exemption) had issued only one letter dated 05/01/2017

calling for certain queries, documents/clarifications. The assessee

could not file books of account, Bank statement and vouchers and the

CIT (Exemption) passed the order and rejected the application of the

assessee for registration u/s 12A of the Act. In these facts, we feel

that one more opportunity should be given to the assessee to explain

its case before the ld. CIT (Exemption). We are of the view from the

facts of the case that the assessee has not been given proper and

sufficient opportunity before disposing of the application of registration

by the ld. CIT (Exemption). We, therefore, in the interest of justice, set

aside the order of the ld. CIT (Exemption) and restore the matter to his

file with the direction to consider the application of the assessee for

registration u/s 12A afresh after giving proper and sufficient opportunity

of being heard to the assessee. The assessee is also directed to be

4 ITA No. 464/Lkw/2017

present on the date of hearing and provide the material / clarification

as asked for by the ld. CIT (Exemption).

6.

In the result, the appeal of the assessee stands allowed for

statistical purposes.

(Order pronounced in the open court on 08/03/2019)

Sd/- Sd/- (T.S. Kapoor) (A.D. Jain) Accountant Member Vice President

Aks – Dtd. 08/03/2019 Copy of order forwarded to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order Assistant Registrar

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