TARACHAND GUPTA FOUNDATION,NASHIK vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE, PUNE

I say that I did not file any documentation proving the genuineness of the transaction carried out by the Trust as I was unaware of the proceedings being conducted. In any case the Trust was registered under the erstwhile law the Trust was not required to apply for fresh registration, due to not knowing the intricacies of the law the Trust has inadvertently filed fresh application for registration under the new regime

I say that when the assessment order was passed under section 143(3) read with section 144B on 31 January 2025, I understood that the provisional registration was cancelled by the learned Commissioner of Income-tax (Exemptions) pursuant to which the scrutiny proceedings were selected and gross receipts of the Trust were sought to be taxed

I say that after receipt of the aforesaid assessment order dated 31 January 2025, I consulted the tax professional from Nashik/Pune for further course of action with respect to cancellation of registration under section 12AB of the Act. I was advised that an appeal should be filed against the rejection order passed under section 12AB dated 19 July 2023 with an application for condonation of delay as soon as possible before the Hon'ble Income-tax Appellate Tribunal, Pune.

I say that I was under a bonafide belief that once the provisional registration was granted for three AY's i.e., AY 2023-24 to AY 2025-26, there was no need to carry out any further registration process.

Considering that the Order u/s 12AB was received on 19 July 2023 (passed on 19 July 2023), the delay in filing the appeal is of 562 days. The delay is counted from 17 September 2023 till 1st April 2025 (tentatively filing date) and 936/PUN/2025 Tarachand Gupta Foundation 14. That the delay was neither deliberate and that the Trust has strong case on merits. 16. I rely on various judicial precedents that in order to avoid miscarriage of justice the delay should be condoned.”

We have heard the ld. Departmental Representative and gone through the averments made in the affidavit. Hon’ble courts in plethora of judgments observed that when consideration of an appeal on merits is pitted against the rejection of a meritorious claim on the technical ground of the bar of limitation, the Courts lean towards consideration on merits by adopting a liberal approach towards ‘sufficient cause’ to condone the delay. The Court considering an application under section 5 of the Limitation Act may also look into the prima facie merits of an appeal. A liberal approach may be adopted when some plausible cause for delay is shown. Hon’ble Supreme Court in the case of Inder Singh Vs. State of Madhya Pradesh judgment dated 21.03.2025 (2025 INSC 382) condoned delay of 1537 days sub- serving the cause of justice. It was held so while observing that the appeal filed by the appellant with a delay was unintentional, much less due to any deliberate laches, and was well-explained by the State before the High Court. Hon’ble Court further held that in cases where the merits are significant, a more liberal approach may be adopted to allow for the examination of the case on its merits. Having gone through the averments made in the affidavit and considering the ratio laid down by the Hon’ble Court in the case of Inder Singh (supra), we are of the view that there was ‘reasonable cause’ which prevented the appellant in filing the appeals within the stipulated time. We therefore condone the delay of 562 days and admit the appeals for adjudication. and 936/PUN/2025 Tarachand Gupta Foundation 4. When the appeals were called for, none appeared on behalf of the appellant. We therefore proceed to dispose of the appeals with the able assistance from the ld. Departmental Representative and material available on record.

We have heard the ld. Departmental Representative and perused the record placed before us. We notice that the appellant is a trust applied for regular registration u/s.12A(1)(ac)(iii) of the Act on Form No.10AB on 01.02.2023 and also applied for approval u/s.80G(5) of the Act on the same date. Ld.CIT(E) with a view to verify the genuineness of activities of the appellant and compliance to requirements of any other law, issued notice through ITBA portal on 25.05.2023 requiring the appellant to upload certain information/clarification. There was no compliance from the side of appellant. In the event, ld.CIT(E) rejected the application of the appellant for grant of regular registration by cancelling the provisional registration granted to it on 19.01.2023. Similar is the situation with regard to application for grant of approval u/s.80G(5) of the Act. Now the appellant has approached this Tribunal with a request to provide one more opportunity as it failed to avail the opportunity and make the submissions before the authorities.

A perusal of the record indicates that appellant failed to make proper compliance before the lower authorities. There may be many reasons for non-appearance of the appellant which cannot be ruled out. We therefore considering the facts and circumstances of the case and in the larger interest of justice, deem it proper to give one more opportunity to the appellant to go before ld.CIT(E) and file the requisite details as called for by the ld.CIT(E) pertaining to genuineness of activities of the trust. In view thereof, we remit the issues of regular registration u/s.12AB and 936/PUN/2025 Tarachand Gupta Foundation as well as approval u/s.80G(5) of the Act to the file of ld.CIT(E) for denovo adjudication. Ld.CIT(E) after considering the submissions of the assessee shall pass a speaking order in accordance with law. Assessee is directed to provide latest email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds raised by the appellant in both the appeals are allowed for statistical purposes.

In the result, both the appeals of the appellant are allowed for statistical purposes.