SHRI ADESHWARJI JAIN DERASAR PATAN,PATN vs. THE CIT(EXEMPTION), AHMEDABAD

This appeal is filed by the assessee as against the order dated 13.11.2024 passed by Ld. Commissioner of Income Tax (Exemption), (hereinafter referred to as “Ld. CIT(E)”), Ahmedabad deny registration under Section 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

The Registry has noted that there is a delay of 81 days in filing the above appeal by the assessee. The assessee by way of a Notarized Affidavit explained that the delay is due to miscommunication and improper guidance by the former Chartered Accountant. Later on subsequent review, the assessee trust came to the knowledge of the rejection order passed by Ld. CIT(E). Thereafter, the assessee trust appointed new Chartered Accountant to file the above appeal. Thus, the delay in filing the appeal is neither willful nor wanton but for the reasons stated above and requested to condone the delay and the assessee trust is undertook to file all necessary details / documents A.Ys. N.A. 2 before Ld. CIT(E) to consider their application for registration under Section 12AB of the Act.

Ld. CIT-DR appearing for the Revenue has no serious objection in condoning the delay and setting-aside the matter back to the file of Ld. CIT(E), however, for the non-response to various notices, cost may be imposed on the assessee.

We have considered rival submissions and perused the material available on record and the documents filed in support of the registration under Section 12AB of the Act. We are satisfied with the explanation offered by the assessee for the delay in filing the above appeal, thus, the delay of 81 days in filing the appeal is hereby condoned. However, to meet the ends of Justice, to set-aside the ex- parte order we may deem fit to impose a cost of Rs. 5,000/- payable by the assessee to the Income Tax Department. On payment of the cost of Rs. 5,000/- and production of challan, Ld. CIT(E) is directed to give one more opportunity of hearing to the assessee for registration under Section 12AB of the Act and pass order in accordance with law. Needless to say, that the assessee should make use of this final opportunity given to it and furnish all necessary details before Ld. CIT(E) for registration.