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Facts
The assessee, a charitable trust, appealed against the rejection of applications for regular registration under Section 12AB and approval under Section 80G. The delay in filing the appeals was attributed to a change in trustee and lack of awareness of notices.
Held
The Tribunal condoned the delay of 102 days, finding a reasonable cause. The appeals were remitted back to the CIT(Exemption) for fresh adjudication after the appellant provides the necessary details.
Key Issues
Whether the delay in filing appeals against the rejection of registration and approval applications was justifiable, and if the matter should be remitted for fresh adjudication.
Sections Cited
12AB, 80G, 12AA, 12A(1)(ac)(iii), 80G(5)
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Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE
Before: DR.MANISH BORAD & MS.ASTHA CHANDRA
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned two appeals at the instance of appellant are against the rejection of applications for regular registration u/s.12AB(1)(ac)(iii) and approval u/s.80G of the Act respectively framed by ld.CIT(Exemption) dated 30.09.2024.
2. Registry has informed that appeals before this Tribunal are time barred by 102 days. Assessee has filed affidavit explaining the reasons which led to delay and the contents of the same read as follows :
“I Mr. Rajaram Ramchandra Konde, Trustee of Martand Khandoba Deosthan Trust, having its office at A/P Dhaminkhel, Junner, Pune, do hereby solemnly affirm on oath, that; 1. Ours is a Trust engaged in charitable activities since its inception.
Trust has made an application in Form 10AB for registration u/s. 80G and 12AB on 01/03/2024 and received Provisional Registration.
3. Trust's affairs were being handled by former trustee Mr. Gabaji Baban Konde Who's contact details are updated on the E-Portal i.e. his Mobile No. 9821554280 and Email ID - vasantvarpe68@gmail.com. A. Due to change in trustee after a period of 5 years, the new Trustee Mr.Rajaram Ramchandra Konde was not aware of compliances of the notices and due to which no order was acknowledged by appellant trust. 5. Trust's affairs are being handled by accountant of Trust on behalf of past President Mr. Gabaji Baban Konde Who's contact details are updated on the E-Portal i.e. his Mobile No. 9821554280 and Email ID vasantvarpe68@gmail.com. 6. Said Mr. Gabaji Baban Konde is having age of 72 years, and he is not operating his email regularly. 7. Due to this reason the trust could neither get various notices issued in connection with 80G/12AB proceedings, nor was aware about the rejection order passed by Hon'ble CIT (Exemption). 8. Mainly due to this reason the order of rejection got unnoticed for substantial period of time which has caused the delay of approximately 102 days in filling the appeal before ITAT.”
After hearing both the sides and going through the averments made in the affidavit by the assessee, we find that due to ‘reasonable cause’ assessee failed to file the appeals within the stipulated time limit. We therefore in light of judgments of Hon’ble Supreme Court in the case of Collector, Land Acquisition, Anantnag & Anr. Vs. Mst. Katiji & Ors. reported in (1987) 2 SCC 107 and in the case of Inder Singh Vs. State of Madhya Pradesh judgment dated 21.03.2025 (2025 INSC 382) condone the delay of 102 days in filing the appeals and admit the appeals for adjudication.
At the outset, ld. Counsel for the assessee submitted that appellant failed to provide the list of donors as called for by the ld.CIT(E) in the show cause notice dated 03.09.2024 because the time given to respond was very short and therefore a prayer is made to remit back the issue on merits to the file of ld.CIT(E) to file the requisite details and adjudication of the applications for regular registration u/s.12AA and approval u/s.80G(5) of the Act on merits.
Ld. Departmental Representative on the other hand supported the orders of ld.CIT(E).
We shall first take up the appeal filed by the appellant wherein it has assailed the impugned order on the following grounds of appeal:
“1. On the facts and in the circumstances of the case and in law Ld. CIT Exemption has erred in not granting registration u/s 12AB without appreciating the facts of the case, and without considering the genuine circumstances which restricted the appellant in sending the reply in time, your appellant prays for and opportunity for submitting the documents and explain the reasons for non- submission and also for granting the registration u/s 12AB of IT Act. Your appellant craves for to add, alter amend, modify, delete any or all grounds of appeal before or during the course of hearing in the interest of natural justice.”
7. Succinctly stated, the appellant is a charitable trust and made application on Form 10AB for regular registration u/s.12A(1)(ac)(iii) of the Act on 01.03.2024. In order to verify the genuineness of activities of the appellant, the ld.CIT (Exemption) issued notice through ITBA portal on 09.05.2024 requiring the appellant to upload certain information. In compliance, the appellant trust furnished the requisite details as called for. Thereafter, ld.CIT(E) issued another notice dated 05.08.2024 communicating the discrepancies in the details so filed and the appellant filed its response on 12.08.2024. Thereafter, ld.CIT(E) issued show cause notice dated 03.09.2024 and the assessee also furnished its response on 09.09.2024. Eventually, ld. CIT (Exemption) vide the impugned order dated 30.09.2024 rejected the application filed by the appellant for grant of regular registration observing as under :
“(iii) The assessee furnished its response on 09/09/2024. It was specifically requested vide the show cause notice dated 03/09/2024 to furnish detailed donation lists for all relevant years. On verification, it is seen that the trust has failed to submit the lists of donors, even receipt no. has not been given by the assessee. Therefore, identity of such donors and consequential genuineness of donations remained doubtful.
Considering the above facts discussed in the show notice and discrepancies noticed, the undersigned is not satisfied about the genuineness of activities of the assessee and compliance of requirements of any other law for the time being in force by the assessee as are material for the purpose of achieving its objects.
In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 27/05/2021 under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961 is hereby cancelled.”
8. Now the appellant is in appeal before this Tribunal assailing the impugned order.
We have heard the rival contentions and perused the record placed before us. The appellant is a charitable trust and filed application on Form 10AB for grant of regular registration u/s.12A(1)(ac)(iii) of the Act on 01.03.2024. We find that the appellant has furnished its response to the notices issued from time to time except the list of donations during the last three years, list of donors, PAN and address of donors, donor receipts etc. Before us, Ld. Counsel for the appellant submitted that the appellant could not provide the required details as the time period given for show cause dated 03.09.2024 was very short.
Further there was change in the management trustee etc. Ld. Counsel for the appellant made a prayer that given an opportunity the appellant is in a position to submit the requisite details before ld.CIT(E) substantiating the charitable activities carried out by the trust. Ld. Departmental Representative albeit supported the order of ld.CIT(E) however, raised no objection for restoration of the issue on merits.
Under the given facts and circumstances and considering the prayer made by ld. Counsel for the assessee and in the larger interest of justice, we deem it proper to afford one more opportunity to the appellant. We therefore remit the issue on merits to the file of ld.CIT(E) for necessary adjudication. Impugned order dated 30.09.2024 is hereby set aside, and the matter is restored to the file of the Ld.CIT (Exemption) with a direction to adjudicate the issue afresh based on the details to be filed by the appellant and then decide in accordance with law. Needless to mention that the appellant trust in the course of the set aside proceedings shall be afforded a reasonable opportunity of hearing. Appellant is at liberty to adduce all the required supporting documents/evidence substantiating the charitable activities.
In the result, the appeal filed by the appellant trust in is allowed for statistical purposes.
We shall now deal with the appeal filed by the appellant trust, wherein it has assailed the rejection of application for granting approval u/s.80G(5) of the Act by the CIT(Exemption).
Facts apropos this appeal are that the appellant trust was granted provisional registration u/s.80G of the Act on dated 27.05.2021. Subsequently, the appellant trust applied for permanent registration and the same was rejected by the ld.CIT(Exemption) vide order dated 30.09.2024. Appellant filed application for approval u/s.80G(5) of the Act which was also declined by ld.CIT(Exemption).
We find that the facts attending to the rejection of the application filed by the appellant trust for approval u/s.80G(5) also remain the same as were involved in its against the order of the CIT(Exemption) declining its registration u/s.12AB of the Act, therefore, our order therein passed shall apply mutatis mutandis for the present appeal too. Impugned order dated 30.09.2024 is hereby set aside and the matter is restored to the file of the CIT(Exemption) with a direction to adjudicate the same in accordance with law. Needless to mention that the appellant foundation in the course of the set aside proceedings shall be afforded a reasonable opportunity of hearing and will remain at liberty to submit any further documents or explanations as may be required.
In the result, both the appeals filed by the appellant are allowed for statistical purposes.
Order pronounced on this 14th day of August, 2025.