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

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.\nThe 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.\nAggrieved 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.\nDuring the course of hearing before us the assessee submitted a paper\nbook containing supporting documents, including:\ni)\nSupporting evidence of expenses incurred for charitable activities;\nii)\nDocumentary proof of activities carried out by the trust;\niii)\nBank statements; and\niv)\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.\nThe 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.\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.