Loading judgment…
Facts
The assessee-trust applied for final registration u/s 12AB after obtaining provisional registration. However, due to an error by their tax consultant and lack of awareness, they failed to respond to notices issued by the CIT(E), leading to the rejection of their application and withdrawal of provisional registration.
Held
The Tribunal condoned the delay in filing the appeal, subject to a cost of Rs. 5,000/- to the Prime Minister's National Relief Fund. The impugned order was restored to the CIT(E) for fresh decision after giving the assessee an opportunity to present their case.
Key Issues
Whether the rejection of the assessee's application for final registration u/s 12AB was justified without affording proper opportunity, and whether the delay in filing the appeal should be condoned.
Sections Cited
12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Makarand V. Mahadeokar
"ी संजय गग", "ाियक सद" एवं "ी मकरंद वसंत महादेवकर, लेखा सद" के सम!। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Makarand V. Mahadeokar, Accountant Member आयकर अपील सं /ITA No.512/Ahd/2025 िनधा"रण वष" /Assessment Year : Not Applicable Aashro Seva Foundation The CIT (Exemtpion) बनाम/ B-315 Shreeji Flats Ahmedabad – 380 015 v/s. Vadsar Road Vadsar Vadodara – 390 010 (Gujarat) "थायी लेखा सं./PAN: AAITA 1508 M (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Sarju Mehta, A.R. Revenue by : Shri Rignesh Das, CIT-DR सुनवाई की तारीख/Date of Hearing : 04/08/2025 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 05/03/2023.
The assessee, in this appeal, is aggrieved by the action of the Ld.CIT(E) in rejecting the application of the assessee for final registration u/s 12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). Aashro Seva Foundation vs. CIT (Exemption)
2 3. The appeal of the assessee is time-barred by 645 days. A separate application for condonation of delay has been filed.
We have heard the rival contentions of the Ld.Representatives of the parties and gone through the record.
The brief facts of the case are that the assessee-trust is engaged in charitable activities, like supporting to the underprivileged community, educational support, blood donation camps, ambulance services and other social welfare activities for the underprivileged including group marriages and food distribution, etc. The assessee-trust was granted provisional registration in Form 10AC for the period from Assessment Year (AY) 2022-23 to AY 2024-25. The assessee-trust, thereafter, applied for final registration u/s.12AB of the Act on 07/09/2022. The Ld.CIT(E) issued notices dated 10/12/2022 and 04/01/2023 to the assessee-trust to furnish the requisite details and documents relating to the charitable activities of the assessee and accounts, etc. However, since there was no response from the assessee-trust, therefore, the ld.CIT(E) vide impugned order dated 05/03/2023 rejected the application of the assessee for final registration and in consequence thereto the provisional registration granted to the assessee also stood withdrawn from 05/03/2023. The assessee-trust, however, was not aware of the aforesaid issuance of notices and final order passed by the Ld.CIT(E). It has been explained in the application for condonation of delay that the email sent by the Ld.CIT(E) did not come to the notice of the key-person of the assessee- trust and, therefore, the case of the assessee remained unrepresented before the Ld.CIT(E). It has been further pleaded that the assessee-trust came to know of the impugned order of the ld.CIT(E) only when the assessee was not Aashro Seva Foundation vs. CIT (Exemption)
3 granted the benefit of the provisional registration and was informed that the provisional registration granted to the assessee stood withdrawn. It has been pleaded that, in fact, the provisional registration of the assessee-trust was valid upto AY 2024-25. However, the Tax Consultant of the assessee while making application for final registration u/s.12AB of the Act of another trust, namely, Swarnam Charitable Trust on 07/09/2022 wrongly uploaded the application/documents mentioning the name and details of the assessee- trust and thereafter the Commissioner proceeded to examine the case of the assessee-trust and sought additional details, whereas, the assessee-trust was not aware of the aforesaid proceedings. An affidavit of the trustee, in this respect, has also been filed.
The Ld. Counsel for the assessee has submitted that the non- representation of the assessee and non-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 nature of charitable activities of the assessee which are further shown by submitting the details of activities and photographs, it appears that the assessee-trust is engaged in charitable activities for upliftment of underprivileged. The assessee-trust has duly explained the reasons for which it could not respond to the notices issued by the Ld.CIT(E) for final registration. Considering the Aashro Seva Foundation vs. CIT (Exemption)
4 overall facts and circumstances of the case, 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 subject to deposit of costs of Rs.5,000/- to the Prime Minister’s National Relief Fund. Subject to the above condition, the impugned order of the Ld.CIT(E) is restored to the file of Ld.CIT(E) for decision afresh. In the meantime, the provisional registration granted to the assessee will continue to hold and will be subject to final decision of the Ld.CIT(E) on this restored application. The assessee will furnish the evidence of deposit of the costs of Rs.5,000/- into Prime Minister’s National Relief Fund, before the Ld.CIT(E) and thereafter the ld.CIT(E) will proceed to decide the application of the assessee afresh in accordance with law, after giving proper and adequate opportunity to the assessee-trust to present its case and furnish the necessary details.