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Facts
The assessee society sought registration under Section 12AB and approval under Section 80G. These applications were rejected by the CIT(E) due to incomplete documentation and non-compliance with directions. The appeals were filed with a significant delay.
Held
The Tribunal condoned the delay in filing the appeals, allowing the applications for condonation. The impugned orders of the CIT(E) were set aside, and the applications were restored to the CIT(E) for fresh decision, affording the applicant another opportunity.
Key Issues
Whether the delay in filing the appeals should be condoned, and whether the applications for registration and approval should be restored to the CIT(E) for fresh consideration.
Sections Cited
12AB, 80G(5)(iii), 12A(1)(ac)(vi)
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A-Bench” JAIPUR
Before: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM
vkns'k@ORDER Per BENCH The above captioned both the appeals are being disposed of together vide common judgment, as they arise out of common facts, and both the impugned orders are interlinked, one being consequential effect of the other.
2. By way of this appeal order dated 29.02.2024, passed by Learned CIT(E), has been challenged, as thereby an application filed by the & 377/JPR/2025 The Rose Society of Rajasthan, Jaipur. appellant-applicant on 30.09.2023, seeking its registration, u/s 12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), came to be rejected on the following three grounds:- Incomplete Form 10AB. Rajasthan Public Trust Act, 1959. Genuineness of activities and non-compliance.
Present appeal has been preferred against order dated 29.02.2024, passed by Learned CIT(E), whereby approval sought by the applicant u/s 80G(5)(iii) of the Act has been refused on the following two grounds:- Approval u/s 80G cannot be granted without registration u/s 12AB. Commencement of activities. First the issue of condonation of delay in filing of both the appeals 4. It may be mentioned here that the impugned orders having been passed on 29.02.2024, the applicant was required to prefer appeals within prescribed period of limitation, but, as per deficiency notes made by the Registry, both the appeals came to be filed on 314 days after the prescribed period.
Appellant-applicant has filed applications seeking condonation of delay, Ld. AR for the applicant has submitted that all the income tax & 377/JPR/2025 The Rose Society of Rajasthan, Jaipur. matters of the applicant society were being looked by Shri Ram Mohan IAS (retired), Executed President of the applicant society, but, he could not pay attention to the taxation matters, as his wife was terminally ill and confined to bed since 2023, and ultimately left this world on 21.08.2024. Ld. AR has referred to the supporting affidavit of Shri Anil Kumar Bhargava, Honorary General Secretary of the applicant society, and submitted that for the aforesaid reason, the delay in filing of the appeals be condoned.
Record reveals that the applicant society has not submitted any medical certificate in support of the abovesaid averment that wife of its Executive President was terminally ill since 2023 and that ultimately, she departed from this world on 21.08.2024. No affidavit of Shri Ram Mohan IAS (retired), the Executive President of the applicant society has been submitted in support of the above said averment, for the reasons best known to the applicant society. Ld. DR for the Revenue has rightly pointed out that even if it be assumed for the sake of arguments that wife of Shri Ram Mohan IAS (retired), Executive President was unwell since, 2023 and she left this world on 21.08.2024, the applicant has failed to provide any sufficient cause for non filing of the appeals from 21.08.2024 to 09.03.2025.
& 377/JPR/2025 The Rose Society of Rajasthan, Jaipur.
Undisputedly, the applicant society was already registered provisionally u/s 12A(1)(ac)(vi) of the Act. Steps were required to be taken by the representative of the society to pursue the two applications presented before Learned CIT(E). In the course of arguments, it has been candidly admitted by ld. AR for the applicant society, that the representative of the applicant society could not comply with the directions issued by Learned CIT(E) from time to time during pendency of the two applications i.e. 12AB and 80G of the Act. When, as per affidavit of the Honorary General Secretary, the Executive President could not pay attention to income tax matters, we are asked to consider the submission made by Learned AR that even otherwise, the matter deserves to be remanded to Learned CIT(E) for grant of another opportunity to the applicant society as regards the two applications, rejected by Learned CIT(E). Taking into consideration all this, we allow both the applications and condone the delay in filing of the appeals. At the same time, we observe that the applicant society was required to take steps to authorize any other representative to take all steps, during the period the Executive President could not pursue the two applications because of ill-health of his wife. Since the applicant society was non & 377/JPR/2025 The Rose Society of Rajasthan, Jaipur. diligent in this regard, we hereby burden the applicant society with costs of Rs. 2500/- as regards each application, seeking condonation of delay. Costs to be deposited in “Prime Minister’s National Relief Fund”. On Merits 8. The grounds on which Learned CIT(E) rejected the applications filed u/s 12AB and 80g(5)(iii) of the Act, have already been mentioned above. As regards registration of the applicant society under RPT Act, 1959, Ld. AR for the appellant has submitted before us that requisite application filed in this regard is pending before the competent authority and that the certificate under the said Act, 1959 shall be produced before Learned CIT(E). On merits, the only submission, as already mentioned above and put forth by Ld. AR for the appellant is that both the applications be restored to Learned CIT(E) so as to afford another opportunity to the applicant society of being heard, and to comply with all the directions issued by Learned CIT(E) from time to time.
Having regard to the submission put forth by Learned AR for the appellant that the directions issued by Learned CIT(E) could not be complied with because wife of its Executive President was terminally ill with effect from 2023, even Ld. DR for the department has no objection to the & 377/JPR/2025 The Rose Society of Rajasthan, Jaipur. grant of another opportunity to the applicant society of being heard before Learned CIT(E). However, taking into consideration that the applicant society could not pursue the two applications and comply with all the directions issued by Learned CIT(E), as its Executive President, who used to deal with income tax matters could not pay attention, we deem it a fit case to restore the two applications to the files of Learned CIT(E) for decision afresh. Record reveals that Learned CIT(E) issued 4 notices to the applicant society on 25.01.2024, 05.02.2024, 11.02.2024 and 21.02.2024, but the applicant society failed to comply with various directions issued by Learned CIT(E). In the given situation, when the applicant society was not diligent enough to appoint some other authorized representative to pursue the applications and comply with the directions issued from time to time, we deem it a fit case to set aside the impugned orders, while imposing costs of Rs. 2000/- in each appeal. We order accordingly. These Costs also to be deposited in “Prime Minister’s Relief Fund”. Result 10. As a result, both the appeals are disposed of for statistical purposes and the two applications u/s 12AB and 80G(5)(iii) of the Act are restored to & 377/JPR/2025 The Rose Society of Rajasthan, Jaipur. the files of Learned CIT(E) for decision afresh, while affording an opportunity to the applicant society, in accordance with law.