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Facts
The assessee-trust's application for registration under Section 12A(1)(ac) was rejected ex-parte by the CIT(E). The assessee's appeal against this order was filed beyond the stipulated time due to a delay of 133 days.
Held
The Tribunal condoned the delay in filing the appeal, set aside the ex-parte order of the CIT(E), and restored the matter for fresh adjudication. The CIT(E) was directed to grant the assessee an adequate opportunity to present its case.
Key Issues
Whether the delay in filing the appeal should be condoned and the matter restored to the CIT(E) for fresh consideration.
Sections Cited
12A(1)(ac), 12A
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Income Tax Appellate Tribunal, “C ” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Makarand V. Mahadeokar
Nishkam Shewa Mandal The CIT (Exemption) बनाम/ A-4, Kotarpur, Hansol Ahmedabad – 380 015 v/s. Ahmeabad – 382 745 (Gujarat_ "थायी लेखा सं./PAN: AAATN 2481 J (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Mohit Balani, AR Revenue by : Shri Rignesh Das, CIT-DR सुनवाई की तारीख/Date of Hearing : 06/08/2025 घोषणा की तारीख /Date of Pronouncement: 15/10/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee-trust against the order of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘CIT(E)’] dated 22/10/2024, rejecting the application of the assessee for registration under sub-clause(iii) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). Nishkam Shewa Mandal vs. CIT(E)
The appeal of the assessee is time-barred by 133 days. A separate application for condonation of delay has been filed.
At the outset, the Ld.Counsel for the assessee has submitted that the notices dated 23/07/2024 & 23/08/2024 issued by the Ld.CIT(E) did not come to the knowledge of the assessee-trust as the email-id belonged to the assessee’s former Consultant and the said Consultant had discontinued his professional practice.
3.1. An affidavit of the Trustee of the assessee, in this respect, has been filed, wherein, the assessee submitted the reason for such delay as under:
“i. That the Applicant had preferred an application seeking registration under Section 12A(1)(ac) of the Act, before the Learned Commissioner of Income Tax (Exemptions). which came to be rejected vide order dated 22.10.2024, ex-parte. ii. That the notices dated 23.07.2024 and 23.08.2024 for hearing in the said matter were issued to the email ID tja.it1947@gmail.com, which belonged to the Applicant's erstwhile consultant. Said consultant had discontinued his professional practice and has thus retired from active services. iii. It is further most respectfully stated and submitted that after the retirement of the erstwhile consultant, a new consultant was appointed by the Applicant. However, the process of change in communication address was inadvertently not carried out. Owing to this inadvertent mistake, even though the Application under the respective law has been moved in time by the Applicant, the notices issued by the concerned authorities were never realised. Nishkam Shewa Mandal vs. CIT(E)
3 iv. After the realisation of passing of the impugned order, on 27.04.2025 by the new consultant, the matter was immediately brought to the attention of the concerned office bearers and thereafter to legal counsel, who initiated the process of vetting and filing the appeal. v. That the appeal was ultimately filed on 13.05.2025, resulting in a delay of 133 days from the date of the impugned order.”
3.2. Therefore, the Ld. Counsel for the assessee has submitted that the non- representation of the assessee and furnishing of required details before the Ld.CIT(E) was not intentional. He has submitted that the matter may be restored to the file of the Ld.CIT(E) to reconsider the registration of application of the assessee.
The Ld.DR, on the other hand, has relied upon the findings of the Ld.CIT(E).
We have considered the rival submissions. Considering the rival submissions, in our view, the interests of justice will be well-served, if the assessee is given an opportunity to present its case before the Ld.CIT(E). In view of this, the delay in filing the appeal is hereby condoned. Thus, the impugned order of the Ld.CIT(E) is hereby set aside and the matter is restored to the file of Ld.CIT(E) for decision afresh. Needless to say, that the Ld.CIT(E) will give proper and adequate opportunity to the assessee to present its case and thereafter to decide the same in accordance with law. It is also directed that the assessee will take due care of the email/notices issued by the Ld.CIT(E) and will promptly appear and furnish the necessary details as and when called for by the Ld.CIT(E). Nishkam Shewa Mandal vs. CIT(E)
With the above observations, the appeal of the assessee is treated as allowed for statistical purposes.