MORRYS FOUNDATION ,GANDHINAGAR vs. THE CIT(EXEMPTION), AHMEDABAD

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ITA 1962/AHD/2024Status: DisposedITAT Ahmedabad14 February 20254 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeals, finding that the assessee was prevented by a reasonable cause from filing within the stipulated time, and the Departmental Representative did not object. The Tribunal held that the delay in filing the applications for registration under Section 12AB and approval under Section 80G(5) should be reconsidered in light of CBDT Circular No. 07/2024, which extended due dates for filing Form 10A/10AB due to practical difficulties. The Tribunal set aside the impugned orders of the CIT(E) and restored the matters to the CIT(E)'s file for fresh adjudication. The CIT(E) was directed to examine the evidence submitted by the assessee, including supporting documents for expenses, activities, bank statements, audit reports, and income tax returns for FY 2022-23 and FY 2023-24, and decide the matter afresh after providing the assessee with an opportunity of being heard. The assessee was directed to comply with any further requisitions by the CIT(E).

What were the facts?

The assessee, Morrys Foundation, filed appeals against two separate orders dated 05.04.2024 and 03.04.2024 passed by the Commissioner of Income Tax (Exemptions), Ahmedabad (CIT(E)). These orders rejected the assessee's applications for registration under Section 12AB and approval under Section 80G(5) of the Income Tax Act, 1961. The primary reasons for rejection by the CIT(E) were that the applications were filed beyond the prescribed time limit and the assessee failed to submit relevant documentary evidence during assessment proceedings. The appeals were filed with a delay, which the assessee sought to condone citing reasons such as failure to check emails, lack of awareness of procedural requirements for Form 10AB, and a trustee's medical condition. The assessee submitted supporting documents including evidence of expenses, activities, bank statements, audit reports, and income tax returns for FY 2022-23 and FY 2023-24.

What were the issues?

1. Whether the delay in filing the application for registration under Section 12AB of the Income Tax Act, 1961, can be condoned on the grounds cited by the assessee. 2. Whether the delay in filing the application for approval under Section 80G(5) of the Income Tax Act, 1961, can be condoned on the grounds cited by the assessee. Assessee's Contentions: The assessee contended that the delay in filing the applications was due to reasonable causes, including failure to check emails regularly, lack of awareness regarding procedural requirements for Form 10AB, and the medical condition of a trustee. The assessee also relied on CBDT Circular No. 07/2024 dated 25.04.2024, which extended the due date for filing Form 10A/10AB to address practical difficulties faced by taxpayers. Revenue's Contentions: The Departmental Representative (DR) did not raise any objections against the condonation of delay or the matter being restored to the CIT(E) for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: MS. SUCHITRA KAMBLE & SHRI MAKARAND V. MAHADEOKAR

For Appellant: Shri Suchit Patel, AR
For Respondent: Shri V. Nandakumar, CIT-DR
Hearing: 13/02/2025Pronounced: 14/02/2025

ORDER \nPER MAKARAND V. MAHADEOKAR, AM:\nBoth these appeals have been filed by the assessee against the separate\norders of the Commissioner of Income Tax (Exemptions), Ahmedabad\n[hereinafter referred to as “CIT(E)"] dated 05.04.2024 and 03.04.2024, rejecting\nthe assessee's applications for registration under Section 12AB of the Income\nTax Act, 1961 (hereinafter referred to as “the Act\") and approval under\nSection 80G(5) of the Act respectively.\nITA Nos.1962 & 1963/Ahd/2024\nMorrys Foundation vs. CIT (E)\n2\nCondonation of delay\n2. The appeals were delayed beyond the prescribed time limit. The\nassessee has filed an affidavit for condonation of delay, citing that the delay\nwas due to failure to check emails regularly, lack of awareness regarding the\nprocedural requirement for filing Form 10AB of the Act, and the medical\ncondition of the trustee. The Departmental Representative (DR) has not\nraised any objections against the condonation of delay. Considering the facts\nand circumstances, and in the interest of justice, we find that the assessee was\nprevented by a reasonable cause from filing the appeal within the stipulated\ntime. Therefore, we condone the delay and admit the appeals for\nadjudication.\nFacts of the Case\n3. The CIT(E) rejected the applications for registration under Section\n12AB and approval under Section 80G(5) of the Act, primarily on the grounds\nthat the applications were filed beyond the prescribed time limit, and the\nassessee failed to submit relevant documentary evidence within the\nassessment proceedings.\n4. Aggrieved by the order of CIT(E) the assessee is in appeals with\nfollowing grounds of appeal(s):\nITA No. 1963/Ahd/2024\n1. The Learned CIT (Exemption) erred in fact and law in rejecting the approval under\nSection 12AA of the Income Tax Act.\n2. Your appellant prays for appropriate relief on the above grounds of appeal.\nITA Nos.1962 & 1963/Ahd/2024\nMorrys Foundation vs. CIT (E)\n3\n3. Your appellant craves leave to add, alter, amend, substitute, or withdraw any of the\ngrounds of appeal stated hereinabove.\nITA No. 1962/Ahd/2024\n1. The Learned CIT (Exemption) erred in fact and law in rejecting the approval under\nSection 80G(5) of the Income Tax Act.\n2. Your appellant prays for appropriate relief on the above grounds of appeal.\n3. Your appellant craves leave to add, alter, amend, substitute, or withdraw any of the\ngrounds of appeal stated hereinabove.\n5. During the course of hearing before us the assessee submitted a paper\nbook containing supporting documents, including:\ni)\nii)\niii)\niv)\nSupporting evidence of expenses incurred for charitable activities;\nDocumentary proof of activities carried out by the trust;\nBank statements; and\nAudit reports and income tax returns for FY 2022-23 and FY 2023-\n24.\n5.

1. Furthermore, Circular No. 07/2024 dated 25.04.2024, issued by the\nCentral Board of Direct Taxes (CBDT), has extended the due date for filing\nForm No. 10A/10AB to address the practical difficulties faced by taxpayers\nand stakeholders. This relaxation acknowledges the procedural challenges\nthat taxpayers have encountered. In light of this beneficial circular, the\nassessee's delayed filing of Form 10AB needs to be reconsidered by the\nCIT(E).\n6. The Departmental Representative (DR) has not raised any objections to\nthe matter being restored to the CIT(E) for fresh adjudication. Considering\nthe totality of the facts, we are of the view that the ends of justice would be\nmet if the matter is restored to the file of CIT(E) for fresh adjudication. The\nITA Nos.1962 & 1963/Ahd/2024\nMorrys Foundation vs. CIT (E)\n4\nCIT(E) is directed to examine the evidence submitted by the assessee and\ndecide the matter afresh, after providing due opportunity of being heard.\n6.

1.

In view of the above, we set aside the impugned orders of the CIT(E)\nand restore the matters back to his file for fresh adjudication in accordance\nwith the law. The assessee is directed to comply with any further requisitions\nby the CIT(E) and submit the necessary documents in support of its claims.\n7. In the result, both the appeals filed by the assessee are allowed for\nstatistical purposes.\nOrder pronounced in the Open Court on 14th February, 2025 at Ahmedabad.\nSd/-\n(SUCHITRA KAMBLE)\nJUDICIAL MEMBER\nSd/-\n(MAKARAND V. MAHADEOKAR)\nACCOUNTANT MEMBER\nअहमदाबाद/Ahmedabad, दिनांक/Dated 14/02/2025\nटी. सी. नायर, व.नि. स. / T.C. NAIR, Sr. PS\nआदेश की प्रतिलिपि अग्रेषित/

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