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Facts
The assessee's application for registration under Section 12A and Section 80G was rejected by the CIT(E) due to non-compliance. The assessee filed an appeal with a 165-day delay, citing aged trustees' health issues, lack of tech-savviness, and financial difficulties preventing their accountant from acting. The Tribunal condoned this delay.
Held
The Tribunal acknowledged the assessee's non-compliance but, in the interest of justice, restored the matters to the Ld. CIT(E) for fresh de-novo consideration after providing due opportunity of hearing. The assessee was directed to pay a cost of Rs. 5,000 for each appeal to the Prime Minister Relief Fund.
Key Issues
1. Condonation of delay in filing appeal for rejection of registration under Section 12A and Section 80G. 2. Whether the rejection of registration applications by CIT(E) due to non-compliance warrants de-novo consideration by CIT(E).
Sections Cited
12A, 12AB, 80G, 80G(5)(iii)
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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: SHRI SIDDHARTHA NAUTIYAL & SHRI NARENDRA PRASAD SINHA
O R D E R
PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:
These are appeals filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemptions), (in short “Ld. CIT(E)”), Ahmedabad vide orders dated 03.09.2024 rejecting the application for grant of registration under Section 12A and under Section 80G of the Act filed by the assessee / applicant trust. Since the facts and issues for consideration are common for both the appeals before us, both the appeals filed by the assessee are being disposed of by way of a common order.
At the outset, we note that the assessee has filed application for condonation of delay of 165 days in filing of the present appeals against the order of rejection passed by Ld. CIT(E) rejecting grant of approval under Section 12AB of the Act and under Section 80G of the Act. The Counsel for the assessee submitted that the trustees of the trust are aged people of more & 1072/Ahd/2025 Shri Ram Bhakt Mandal Trust vs. CIT(E) Asst. Year –N.A. - 2– than 70 years and are facing health issues. Further, being senior citizens they are not acquainted with technology and could not access their email id. Also due to financial crunch the applicant trust could not pay the fee of their accountant, who did not pursue the present matters. The email id which was mentioned in the portal was that of the accountant and accordingly, neither the applicant could cause appearance in response to notices issued by Ld. CIT(E) during the course of hearing and also could not file the appeals against the orders of rejection, before ITAT within the stipulated time. Accordingly, it was submitted that the delay of 165 days in filing of the present appeals may kindly be condoned.
In view of the Affidavit file by the assessee/applicant trust, in the interest of justice, the delay of 165 days in filing of the present appeals are hereby being condoned.
As both grounds of appeal are similar so we are taking only the grounds of in the following manner:
“1. The Ld. AO has rejected application/s 80G of Income Tax Act, 1961 on the ground that assessee has failed to provide response of the information as required by LD. CIT.
2. Vide order dated 04.09.2024, Ld. CIT, Exemption Ahmedabad, has rejected the application of registration U/s 12AB & 80G. Hence assessee is requesting you to kindly look in to the matter of rejecting the application filed for approval U/s 12AB/80G(5)(iii) and kindly grant the approval.
3. The appellant craves leave to add, alter or delete any ground either before or in the course of hearing of the appeal.”
& 1072/Ahd/2025 Shri Ram Bhakt Mandal Trust vs. CIT(E) Asst. Year –N.A. - 3– On Merits
The Counsel for the assessee / applicant trust submitted that admittedly there is default on the part of the assessee is not causing appearance before Ld. CIT(E) during the course of hearings for grant of approval under Section 12AB / 80G of the Act, which was on account to the fact that the notices were being sent to the email id of the accountant of the assessee / applicant trust, who did not inform the assessee / applicant trust about the same. It was for these reasons that the CIT(E) cancelled the registration under Section 12A as well as under Section 80G of the Act by observing that the assessee / applicant trust failed to file necessary evidences to satisfy the CIT(E) with regards to the genuineness of the activities of the trust, the assessee had failed to satisfy Ld. CIT(E) that the activities of the trust are in consonance with the objects of the trusts and also did not file documentary evidences to demonstrate that other laws for the purposes of achieving objects of the trusts have been complied with. Accordingly, it was submitted that in the interest of justice, both the appeals filed by the assesse / applicant trust may be restored to the file of Ld. CIT(E) for de-novo consideration and if given an opportunity of hearing, the assessee / applicant trust shall duly and diligently comply with all notices of hearing issued by Ld. CIT(E).
In response, Ld. DR did not object the matters to be set-aside to the file of Ld. CIT(E), for de-novo consideration, in the interest of justice.
We have heard the rival contentions and perused the material on record.
& 1072/Ahd/2025 Shri Ram Bhakt Mandal Trust vs. CIT(E) Asst. Year –N.A. - 4– 8. On going through the facts of the instant case, we observe that admittedly there was non-compliance on part of the assessee / applicant trust in not attending the proceedings for grant of registration under Section 12A and under Section 80G of the Act before Ld. CIT(E). However, in the interest of justice, the matters are hereby restored to the file of Ld. CIT(E) for de- novo consideration, after giving due opportunity of hearing to the assessee. Further, the assessee / applicant trust is directed to pay cost of Rs. 5,000/- each for both the appeals to be deposited with the Prime Minister Relief Fund for the purpose of getting the present matters restored to the file of Ld. CIT(E), for de-novo consideration.
In the combined result, both the appeals filed by the assessee / applicant trust are allowed for statistical purposes. This Order is pronounced in the Open Court on 03/07/2025
Sd/- Sd/- (NARENDRA P. SINHA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 03/07/2025 TANMAY, Sr. PS TRUE COPY आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad गाड� फाईल / Guard file. 6. आदेशानुसार/ BY ORDER,