MATA BALWINDER KAUR CHARITABLE FOUNDATION,LUDHIANA vs. DCIT,CENTRAL CIRCLE-2,LUDHIANA, LUDHIANA

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ITA 338/CHANDI/2025Status: DisposedITAT Chandigarh02 September 2025AY 2025-26Bench: SHRI RAJPAL YADAV (Vice President), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted the amendment by the Finance Act, 2024, which empowers the PCIT/CIT to condone delays in filing such applications if there is a reasonable cause. The Tribunal accepted the assessee's prayer to explain the delay.

What were the facts?

The assessee filed an application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, which was rejected as not being maintainable due to being filed beyond the prescribed time limit. The assessee had started its activities in FY 2021-22 but failed to file the application within 6 months.

What were the issues?

Whether the delay in filing the application for registration under Section 12A(1)(ac)(iii) can be condoned by the authorities in light of the amendment made by the Finance Act, 2024.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 12A(1)(ac)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHANDIGARH

Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Appellant: Shri Rajesh Mehru (CA) -Ld. AR

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application seeking registration u/s 12A(1)(ac)(iii) of the Act vide impugned order dated 06-01-2025 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. 2. Upon perusal of para-7, it could be seen that the application has been filed on 01-07-2024 which was held to be not within prescribed time limit as extended by the Board. The assessee started its activities during Financial Year (FY) 2021-22 but failed to file the application within 6 months. Accordingly, the application was rejected as non- maintainable against which the assessee is in further appeal before us.

3.

The Ld. AR has referred to amendment made by Finance Act, 2024 which empowers the PCIT / CIT to condone such delays provided there is a reasonable cause for the delay. The said amendment has come into effect from 01-10-2024. A proviso has been added after sub- clause (vi) of Sec.12A(1)(ac) which provide as under: - "Provided that where the application is filed beyond the time allowed in sub- clauses (i) to (vi), the Principal Commissioner or Commissioner may, if he considers that there is a reasonable cause for delay in filing the application, condone such delay and such application shall be deemed to have been filed within time.".

1.

As per the above amendment, specified authorities viz. PCIT / CIT is now quite empowered to condone such delays. The Ld. AR has stated that the assessee is in a position to explain the delay and accordingly, prayed for restoring the application back to the file of Ld. CIT(E).

4.

Accepting the prayer of Ld. AR, we set aside the impugned order and restore the impugned application back to the file of Ld. CIT(E) to consider condonation and thereafter, proceed with adjudication on merits.

5.

The appeal stand allowed for statistical purposes. Order pronounced on 02-09-2025.

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