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Facts
The assessee filed appeals against orders passed by the CIT(E) rejecting applications for registration u/s 12A and approval u/s 80G. The appeals were filed after a significant delay, which the assessee sought to condone by citing reasons of procedural oversight and non-receipt of communications.
Held
The Tribunal condoned the delay in filing the appeals, noting the lack of objection from the Ld. DR and the substantial grounds raised by the assessee. The Tribunal found that the assessee's grievance was primarily about ex-parte orders passed by the CIT(E) without proper hearing, which is against the principles of natural justice.
Key Issues
Whether the appeals filed with a significant delay should be admitted, and whether the ex-parte orders passed by the CIT(E) denying registration/approval were justified.
Sections Cited
12A, 80G, 12AA, 12AB
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Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY
7 to 10-Chd-2025 KDDL Ethos Foundation 2 10/Chd/2025) passed by the Ld. Commissioner of Income Tax (Exemptions) [herein referred to as ‘CIT(E)’].
All the appeals filed by the Assessee pertain to A.Y. 2022-23. Out of 04 appeals, two are for the issuance of Certificate u/s 12AA (ac)(iii) and two are for Registration u/s 80G(5) of the Income Tax Act, 1961 (in short 'the Act').
3. The Registry has marked two appeals i.e., in and 10/Chd/2025, time barred by 643 days. During proceeding before us, the ld. Counsel for the Assessee has brought it on record that the Applications for condonation of delay along with Affidavits have already been filed in both the aforesaid appeals, however, the contents of their being similar, image of Application and Affidavit furnished by the Assessee in ITA 9/Chd/2025 is reproduced as under:-
7 to 10-Chd-2025 KDDL Ethos Foundation 3 7 to 10-Chd-2025 KDDL Ethos Foundation 4 7 to 10-Chd-2025 KDDL Ethos Foundation 5 7 to 10-Chd-2025 KDDL Ethos Foundation 6 7 to 10-Chd-2025 KDDL Ethos Foundation 7
We have considered the reasons for the delay in filing of the both the appeals (ITA No. 9 and 10/Chd/2025) as mentioned in the Applications and Affidavits. We have considered the issue brought on record and gone through the contents of the applications / affidavits for condonation of delay and we feel it appropriate to condone the delay because of the nature of issue discussed in the affidavit
The ld. DR did not have any objection for condonation of delay. Accordingly, the delay in filing of both the appeals is hereby condoned.
In all the aforesaid appeals, though numerous common / similar grounds have been raised by the Assessee but the main grievance of the Assessee is regarding passing of ex-parte orders by the ld. CIT(E) in all these appeals, with regard to the rejection of registration u/s 12AA (ITA Nos.7 & 9/Chd/2025) and rejection of approval u/s 80G (in &10/Chd/2025), which is against the principals of natural justice.
7 to 10-Chd-2025 KDDL Ethos Foundation 8
Brief facts, as per submissions of the ld. Counsel for the Assessee, are that the appellant trust was formed on 3rd of February 2016. An application for registration under section 12A was filed by the assessee on 2nd of February 2017 which was rejected by the CIT(E). Thereafter, the assessee filed in appeal against the rejection order and ITAT allowed the appeal directing the CIT Exemptions to grant registration under section 12AA vide order dated 28th of February 2022. Commissioner of Income Tax (Exemptions) granted the registration on 19th of July 2022.
In the meanwhile, due to the changes made in the procedure for registration even in respect of old trusts w.e.f 01.04.2021, the appellant trust filed an application for provisional registration u/s 12A and 80G on 25.03.2022 and 30.03.2022 respectively. The provisional registration was granted up to AY 2024-25. Thereafter, the appellant filed for final registration on 29.09.2022. The CIT(Exemption) rejected the registration u/s 12A as well as 80G for want of appearance on behalf of the appellant
7 to 10-Chd-2025 KDDL Ethos Foundation 9 during the proceedings vide separate orders dated 19.01.2023. Another order rejecting the applications filed u/s 12A and 80G was passed by CIT(Exemptions), Chandigarh dated 13.11.2024 wherein there was a reference to the order passed by CIT(Exemptions) dated 19.01.2023 while rejecting the applications. As such, the assessee has preferred appeals against the orders passed by the Commissioner of Income Tax(Exemptions) in each case.
The findings of the Ld. CIT(E), rejecting the Application of the Assessee for Registration u/s 12AB of the Act in & 10/Chd/2025, are as under:
“An application for registration u/s 12A(1)(ac)(iii) of the Act was filed by the applicant on 29.09.2022. 2. In order to examine and verify the objects of the trust or the institution, the genuineness of its activities and compliance with such requirements of any other law for the time being in force as are material for the purpose of achieving its objects, a questionnaire was issued electronically on 10.11.2022 requesting
7 to 10-Chd-2025 KDDL Ethos Foundation 10 the applicant to furnish the following documents/details online through e- proceedings on e-filling portal along with the supporting documents/evidence. …….
On the stipulated date neither any submission was made nor was any request for adjoumment or other communication received from the applicant through any channel. Another letter granting necessary opportunity was issued to the applicant on 22.12.2022 and the matter was fixed for reply by 30.12.2022. On this date, likewise, neither any online/offline reply was submitted nor was any request for adjournment or other communication received from the applicant. In the interests of natural justice, final opportunity was then accorded to the applicant on 11.01.2023 and the matter was fixed for 13.01.2023. However once again, no reply has been furnished in the case nor any communication received from the applicant through any channel even till the date of passing of this order. Given the non- compliances on the aforesaid occasions afforded to the applicant, it becomes evident that the applicant is not interested in pursuing
7 to 10-Chd-2025 KDDL Ethos Foundation 11 the matter. In the absence of submissions regarding the activities, it is difficult to verify both the nature of objects & genuineness of activities of the applicant. It can safely be concluded that the queries raised could not be answered satisfactorily by the applicant.” ………. I5. In view of the above discussions, the present application of the assessee filed in Form 10AB u/s 12A(1)(ac) (iii) of the Act is disposed of as being deficient in factual evidences in the absence of the requisite submissions and appearances of the assessee at the scheduled hearings. This is despite the granting of at least three opportunities as above. It is pertinent to mention here that it is mandated by the provisions of Section 12A(1)(ac)(iii) of the Act that where the trust or institution has been provisionally registered u/s 12AB it has to make an application for registration u/s 12AB within six months of commencement of activities. In the absence of any submission from the applicant it is not possible to ascertain the objects and activities carried out by the applicant. Accordingly the application filed by the applicant for registration u/s 12AB of the 7 to 10-Chd-2025 KDDL Ethos Foundation 12 Act is hereby rejected, which rejection and consequent lack of registration will apply from this F.Y. 2022-23 onwards and also supersede any registration granted u/s 12AB or 12AA of the Act by any authority at any earlier time. In view of the above discussions, the present application of the assessee filed in Form 10AB u/s 12A(1)(ac) (iii) of the Act is disposed of as being deficient in factual.”
Similarly, in & 8/Chd/2025, the CIT(E) Cancelled the Applications of the Assessee for Registration u/s 12A(1)(ac)(iii) and for approval u/s 80G(5)(iii) in ITA No. 8/Chd/2025, being non- maintainable, by observing as under:-
“This is to inform you that your application in Form No.(10AB) vide Acknowledgment No- 535153050290624 Dated 29/06/2024 has been cancelled on 13/11/2024 by CIT EXEMPTIONS CHANDIGARH with following Remarks An application for registration u/s 12A(1)(ac)(iii) / u/s 80G(5)(iii) of the Income Tax Act, 1961 was filed by the applicant electronically in Form 10AB.
7 to 10-Chd-2025 KDDL Ethos Foundation 13
On perusal of our records, it is seen that the application of the applicant under section 12A(1)(ac)(ii) / 80G(5)(iii) has already been rejected in the past on 19.01.2023. As the application of applicant has been rejected once, the applicant cannot apply for approval u/s 12A again. In view of the above, the present application of the applicant is cancelled being non-maintainable.” 10. Aggrieved with the order of the ld. CIT(E), the Assessee has filed theses appeals before us.
The ld. Counsel for the Assessee has brought it to our notice during the proceedings before us that the Assessee has filed an application for Registration u/s 12A before the ld. CIT(E) which was rejected because of the non- compliance on the part of the Assessee for the queries raised by the CIT(E) but the Assessee claims that CIT(E) had already passed an order on 13.11.2024. The ld. Counsel for the Assessee accordingly requested that appeals in all these four cases should be remanded back to the CIT(E) for hearing afresh and to decide the matter on merit.
7 to 10-Chd-2025 KDDL Ethos Foundation 14
Per contra, the ld. DR relied on the orders of the authorities below.
We have considered the findings given by the ld. CIT(E) in his / her order and we find that there was some confusion on the part of the Assessee. First, two orders which were issued by ld. CIT(E) could not be seen by the earlier advocate deputed by the Foundation for this purpose. Accordingly, notices issued by the CIT(E) could not be complied with and details could not be filed. In the absence of any details, Ld. CIT(E) has denied the registration u/s 12A and also denied approval u/s 80G of the Act. Later on, again, two orders passed in and 11/Chd/2025 also remained uncompiled with. As a result, thereof, the Ld. CIT(E) passed an ex- parte order denying the Registration to the Foundation.
We are of this considered view that in the fitness of things and for natural justice to the Assessee, these cases should be remanded back to the CIT(E) to decide it on merit after taking into consideration all the details / documents filed by the Assessee. Therefore, keeping in 7 to 10-Chd-2025 KDDL Ethos Foundation 15 view the element natural justice, all these matters are remanded back to the CIT(E) for adjudication afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(E). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. The appeals of the Assessee are allowed for statistical purposes.
15 In the result, all the captioned appeals are allowed for statistical purposes.
Order pronounced on 08.07.2025.