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Facts
The assessee, a charitable trust, filed an application for registration under section 12AB. The CIT(E) issued notices for details, but the assessee failed to respond or seek adjournment, leading to denial of registration. The assessee then filed an appeal with a delay, citing communication issues due to an old email address not being updated.
Held
The Tribunal condoned the delay in filing the appeal. While the explanation for non-compliance was not considered reasonable, the appeal was allowed for statistical purposes, directing the CIT(E) to grant another opportunity for hearing after the assessee pays a cost of Rs. 5,000/-.
Key Issues
Whether the delay in filing the appeal should be condoned and whether the assessee should be granted another opportunity to furnish details for registration after paying costs.
Sections Cited
12AB, 12A, 12A(1)(ac)(iii)
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Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha
Navyug Charitable Seva The CIT (Exemption), Samiti Ahmedabad Manglam Society, Vs Viramgam, Ahmedabad City Gujarat-382150 PAN: AABTN2001M (Respondent) (Appellant) Assessee Represented: Shri Rajesh C. Shah, A.R. Revenue Represented: Adjournment Application filed Date of hearing : 22-04-2025 Date of pronouncement : 24-04-2025 आदेश/ORDER PER : NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:-
This appeal is filed by the Assessee as against the order dated 02.09.2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). There was a delay of 62 days in filing of this appeal. The assessee has filed an affidavit explaining the reason for delay. It is submitted that all the communications were received on the email of the old Page No 2 Navyug Charitable Seva Samiti vs. CIT(E) management/trustee and that the new email was inadvertently not updated. Considering the explanation of the assessee, the delay in filing the appeal is condoned.
Brief facts of the case is that the assessee is a charitable Trust and filed registration application u/s 12A(1)(ac)(iii) of the Act in Form 10AB along with supporting documents. The Ld. CIT(E) issued hearing notice on 03/07/2024 and on 06/08/2024 via email to furnish certain details/documents for granting registration. The assessee neither filed any submissions nor sought for any adjournments, therefore Ld. CIT(E) denied registration u/s. 12A of the Act, as he was not satisfied about genuineness of the activities of the trust and that the activities of the trust were in consonance with the objects of the trust.
The Ld. Counsel submitted that the assessee Trust is prepared to file all required documents before Ld. CIT(E) for registration and therefore requested to set aside the matter back to the file of Ld. CIT(E) for granting registration. The explanation of the assessee that communication was received on the email of the old management and that the new email was not updated is not found a reasonable explanation for non-compliance before the CIT(E). Therefore, we deem it fit to impose a cost of Rs. 5,000/- on the assessee, payable to the Income Tax Department within two weeks from the date of receipt of copy of this order. On production of receipt for payment of the cost, Ld. CIT(E) is directed to give one more opportunity of hearing to the assessee for registration in accordance with the provisions of law.
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In the result, the appeal filed by the Assessee is allowed for statistical purpose.