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Facts
The assessee filed an application for registration under Section 12AA of the Income Tax Act, which was rejected by the CIT(E) due to lack of certain required documents. The assessee contended they were unaware of these requirements, but the documents were available.
Held
The Tribunal condoned the delay in filing the appeal and set aside the order of the CIT(E). The matter was restored to the CIT(E)'s file to grant the assessee a proper opportunity to explain its case and furnish the required documents.
Key Issues
Whether the CIT(E) erred in rejecting the registration application for non-compliance with document submission, and if a further opportunity should be granted to the assessee.
Sections Cited
12AA, 12A(a)
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Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW
Before: SHRI. SUDHANSHU SRIVASTAVA & SHRI NIKHIL CHOUDHARY
This appeal has been preferred by the assessee against order, dated 28.10.2020, passed by the ld. Commissioner of Income Tax (Exemption), Lucknow [hereinafter called the ‘Ld. CIT(E)’], rejecting the assessee’s application for registration under section 12AA of the Income Tax Act, 1961 (hereinafter called ‘the Act’).
2.0 The assessee has raised the following grounds of appeal:
CIT (Exemption) Lucknow, has not considered our submission of documents in relation to charitable activities, through E-mail dated 08.06.2020 in Covid-19 Period, otherwise we shall file the eligible for grant of appeal under section 12AA. 2.1 Subsequently, the assessee filed an application dated 06.06.2025, which was received by the Registry of this Office on 06.06.2025, for admission of the following additional grounds of appeal:
1. That the learned CIT(E), Lucknow has erred both in law and on facts in rejecting application for seeking registration U/S 12AA of the Act filed by the appellant charitable Trust, solely on the basis of his unilateral inferences and unwarranted observations, which are contrary to the facts of appellant's case and even to the material/evidences placed on records.
2. That the learned CIT(E), Lucknow has erred both in law and on facts of the case in arbitrarily rejecting the application for seeking registration U/s 12AA of the Act filed by the appellant, and has completely brushed aside and disregarded that in the light of material/evidences placed on records it was beyond doubt evident that from last number of years, the appellant charitable Trust was genuinely conducting the charitable activities strictly in accordance with its objects and it had duly complied with all the necessary requirements of any other law, which were material for the purpose of achieving its objects and therefore appellant charitable Trust deserves for grant of registration U/s 12AA of the Act.
2.2 Since the Additional Grounds raised by the assessee- society are, in fact, revised grounds of appeal not requiring any fresh material to be gone into, after hearing both the parties, they are being admitted.
3.0 The Ld. Authorized Representative for the assessee submitted that there is a delay of 575 days in filing the appeal before the Tribunal. He submitted that the assessee had filed an application dated 09.12.2024, which was received by the Registry of this Office on 09.12.2024, for condonation of delay, duly supported by an Affidavit of Mr. Raja, President of the assessee- society, stating therein that he himself was a handicapped person and that during the relevant period the Secretary of the assessee-society, Shri Amit Chaudhary underwent operation for both of his kidneys and was bed ridden for a long period, and further that the Treasurer of the assessee-society, Ms Chavvi, who was also looking after the legal matters of the assessee- society, was under treatment for Cancer and also that some of staff of the assessee-society were suffering from Covid 19 disease, which had resulted into non-filing of the appeal before the Tribunal within the prescribed period. The assessee-society has also filed Medical Certificates and prescriptions in support of the averments made in the Affidavit. It was prayed by the Ld. A.R. that the delay caused in filing the appeal was not deliberate and that it was beyond the control of the assessee, which may please be condoned and the appeal be heard on merits.
4.0 The ld. CIT (D.R.) had no objection to the delay being condoned.
5.0 In view of the prayer made on behalf of the Assessee, duly supported by an Affidavit, Medical Certificates and no objection by the ld. CIT (D.R.), we condone the delay in filing of the appeal and admit the appeal for hearing.
6.0 The Ld. A.R. submitted that the assessee-society had filed an application dated 08.11.2019 for registration under section 12A(a) of the Act. However, the Ld. CIT(E) rejected the application of the assessee for registration under section 12AA of the Act, observing that the assessee-society has not obtained any permissions/approvals/affiliations for implementing its objects such as Right to Education Act, 2010, The Uttar Pradesh Basic Shiksha Adhiniyam, 1972/The Intermediate Education Act, 1921/The Uttar Pradesh Pravidhik Shiksha Adhiniyam, 1962, National Building Code 2005, Fire and Life Safety Certificate, Save Drinking Water and Sanitary Conditions Certificate, etc.
6.1 The Ld. A.R. submitted before us that the assessee- society was not aware that all these documents referred to in the order of the Ld. CIT(E) were required for the purpose of Registration under section 12AA of the Act. The Ld. A.R. further submitted that all these documents were already with the Society and prayed that an opportunity may be given to the assessee- society to present these documents before the Ld. CIT(E).
7.0 Per contra, the Ld. CIT(D.R.) opposed the prayer of the assessee for being given another opportunity.
8.0 We have heard both the parties and after having gone through the material on record, we note that the Ld. CIT (E) had rejected the application of the assessee for registration under section 12AA of the Act mainly in the absence of certain documents as referred to in pargraph 6.1 of his impugned order. The submission of the Ld. A.R. was that the assessee-society were not aware that these documents were required for the purpose of Registration under section 12AA of the Act and that these documents were already with the Society and can be presented before the Ld. CIT(E). Under these facts, we feel that one more opportunity should be given to the assessee to explain its case and furnish the aforementioned documents before the ld. CIT (E). We, therefore, set aside the order of the ld. CIT (E) and restore the matter to his file with the direction to consider the application of the assessee for registration under section 12AA of the Act after giving proper and sufficient opportunity of being heard to the assessee.
9.0 In the final result, the appeal of the assessee stands allowed for statistical purposes.
Order pronounced in the open Court on 25/08/2025.