Loading judgment…
Facts
The assessee, Shriram Paropkari Trust, filed two appeals against the order of the CIT(E) rejecting their applications for registration/approval under Sections 12AB and 80G of the Income Tax Act. The appeals were filed with a delay of 33 days.
Held
The Tribunal condoned the delay in filing the appeals by taking a liberal view, considering the reasons provided by the assessee for the delay and the curable nature of the defects. The matter was restored to the CIT(E) for fresh adjudication.
Key Issues
Whether the delay in filing the appeals should be condoned and whether the CIT(E) erred in rejecting the applications for registration/approval under Section 12AB and 80G.
Sections Cited
12AB, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”B” JAIPUR
आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR Jh jkBkSM+ deys'k t;UrHkkbZ] ys[kk lnL; ,o Jh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 338 & 339/JPR/2025 cuke Shriram Paropkari Trust CIT Exemption, Vs. 53 Jagdamba Colony Naya, Jaipur Keha Ambabari, Jaipur LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AANTS6724J vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@Assessee by : Sh. Shrawan Kumar Gupta, Adv. jktLo dh vksj ls@Revenue by: Mrs. Alka Gautam, CIT-DR lquokbZ dh rkjh[k@Date of Hearing : 19/05/2025 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 19/05/2025 vkns'k@ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM
These two appeals are filed by assessee and are arising out of the order of the Learned Commissioner of Income Tax (Exemption), Jaipur passed under section 12AB and 80G of the Income Tax Act, 1961 [ for short Act ] both dated 29.11.2024 [here in after “CIT(E)”] respectively. the assessee has raised following grounds: - “1. The Impugned order u/s 80G/10AB of the Act dated 29/11/2024 is bad in law and on facts, without providing adequate & reasonable opportunity of being heard, being without jurisdiction and for various other reasons and hence the same may kindly be quashed.
2. The Ld. CIT(E) erred in law as well as on the facts of the case in rejecting the application for granting Registration/approval u/s 80G. The rejection so made and refusal to grant Registration/approval u/s 80G is contrary to the provisions of law and facts of the case. The same kindly may be quashed.
3. That the impugned order so passed was in the contravention of the law prevalent at the relevant point of time and also on fact and hence may kindly be quashed. The Id. CIT(E) may be directed to grant Registration/approval from the date of application.
4. The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing. the assessee has raised following grounds: - “1. The Impugned order u/s 12AB of the Act dated 29/11/2024 is bad in law and on facts, without providing adequate & reasonable opportunity of being heard, being without jurisdiction and for various other reasons and hence the same may kindly be quashed.
The Ld. CIT(E) erred in law as well as on the facts of the case in rejecting the application for granting Registration/approval u/s 12AB. The rejection so made and refusal to grant Registration/approval u/s 12AB is contrary to the provisions of law and facts of the case. The same kindly may be quashed.
3. That the impugned order so passed was in the contravention of the law prevalent at the relevant point of time and also on fact and hence may kindly be quashed. The Id. CIT(E) may be directed to grant Registration/approval from the date of application.
4. The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing.
3. At the outset of the hearing of the appeals it is noted both the appeals were filed with a delay of 33 days. The assessee prayed to condone the delay in filling the appeal by a separate prayer dated 27.02.2025 which reads as follows :
Sub: Prayer for condonation of Delay Ref: In the matter of SHRIRAM PAROPKARI TRUST having PAN No. AANTS6724] Hon'ble Sir,
In this connection it is submitted that the applicant/assessee is a trust and filed this appeal against the order dated 29/11/2024 passed by Hon'ble CIT EXEMPTION, JAIPUR.
2. Further as per date of order passed by CIT EXEMPTION, JAIPUR i.e. 29/11/2024, the appeal was to be filed within two months from the end of the month in which the order was communicated i.e. on or before 31/01/2025 but the same has been filed online on 29/02/25. If we count delay then it is about 33 days. That in this case the appellant was prevented by sufficient cause from presenting the appeal within the prescribed time limit of two months. Although actually there is no delay if following facts are being considered:-
The reason of late filing was that the impugned order would have been served on the email id i.e KRIPASHANKAR684@GMAIL.COM of the assessee but the assessee being a trust works with very small number of staff and the staff does not check trust's email id regularly. Thus, the management/trustees of assessee were not aware about the order sent on the email address. And the staff also does not check income tax portal of the assessee.
4. However, assessee's CA while surfing the income tax portal on 20/02/2025, found that an assessment order has been passed in the case of the assessee, thereafter he informed the management/trustees of assessee and then it has come to the knowledge of the management/trustees of assessee that the impugned order has been passed.
5. Thereafter, they approached to counsel who prepared the appeal and deposited the appeal fees on 26/02/2025 and submitted the Form 36 on 27/02/2025.
Thus, due to the aforesaid circumstances, the appeal got delayed, however, there is no negligence's on part of management/trustees of assessee or the counsels.
It is submitted that, recently on 05/08/2024, the Hon'ble Supreme Court in the case of Mool Chandra v. UOI (CA No. 8435-8436 of 2024 (@S.L.P. (Civil) Nos. 2733-2734 of 2024 dt. 5-8-2024) held that "No litigant stands to benefit in approaching the courts belatedly. It is not the length of delay that would be required to be considered while examining the plea for condonation of delay, it is the cause for delay which has been propounded will have to be examined. If the cause for delay would fall within the four corners of "sufficient cause", irrespective of the length of delay same deserves to be condoned. However, if the cause shown is insufficient, irrespective of the period of delay, same would not be condoned."
8. It is submitted that the Hon'ble Supreme Court in the case of Collector, Land & Acquisition v. Mst. Katiji & Others (1987) 167 ITR 471 (SC) has advocated for a very liberal approach while considering a case for condonation of delay. The following observations of the Hon'ble Court are notable:
"The legislature has conferred the power to condone delay by enacting section 5 of the Limitation Act 1963 in order to enable the Courts to do substantial justice to parties by disposing of matters on 'merits'. The expression sufficient cause' employed by the legislature is adequately elastic to enable the Courts to apply the law in a meaningful manner which subserves the ends of justice-that being the life-purpose of the existence of the institution of Courts. It is common knowledge that this Court has been making a justifiably liberal approach in matters instituted in this Court. But, the message does not appear to have percolated down to all the other Courts in the hierarchy."
The abovementioned judgment is a leading case on the subject and has a binding force on all the officers/courts subordinate thereto.
8. The apex court have again reiterated that the expression "sufficient cause" should receive a liberal construction. The Hon'ble court has also held that advancing of substantial justice should be of prime importance. Kindly refer Vedbai vs. Shantaram Baburam Patil & Others 253 ITR 798 (SC).
Prayer In view of above facts and circumstance and with the sympathy and settled legal position, the delay so caused may.”
The contention so raised were also supported by an affidavit signed by Shri Ram Niwas Goyal, trustee of the applicant – assessee trust. The ld. AR of the assessee appearing in these appeals submitted that the assessee is serious on the duties and the delay is of 33 days delay only and was on account of the facts stated in the prayer for condonation of delay. In support he relied upon the judicial precedent.
3.1 On the other hand ld. DR representing the revenue submitted that the assessee has engaged the counsel and therefore, the reasons advanced are not reasonable. However, she has not raised any specific objection on the facts narrated by the assessee.
3.2 The bench noted that the assessee contended that the email address mentioned was not regularly checked by the staff of the trust and when the ld. AR of the assessee came to know about the passing of order the assessee-applicant within a reasonable time filed the appeal which is delayed by 33 days. The bench considering the judicial decision cited takes a liberal approach and condone the delay in the interest of the justice.
Apropos to the grounds raised by the assessee in the application for registration of the applicant-trust was rejected for registration u/s 12AB of the Act. While rejecting that application ld. CIT(E) observed that the assessee has not submitted legible copy of trust deed. He also noted that the application moved registration u/s 12AB of the Act was not complete and the assessee and the required registration of the trust under the Rajasthan Public Trust Act, 1959 was not submitted.
Ld. CIT(E) as regards the activities of the trust noted the applicant - assessee has not submitted the details asked on the following points; • List of donors • Bills and vouchers of expenses • Photograph of activities • Details of social handle • Digital footprint • Details of Bank account details of last three years • Details of charitable activities and its beneficiaries Based on that observation ld. CIT(E) noted that the assessee could not establish genuineness of activities and thereby on that observation and the non-compliance as noted herein above, the application for registration of the trust was rejected by the ld. CIT(E).
Apropos to the grounds so raised by the assessee in the application for recognition of the trust u/s 80G of the Act was rejected by the ld. CIT(E) because the applicant assessee was not considered for registration u/s. 12AB of the Act and thereby the recognition of the trust u/s. 80G of the Act was also rejected.
6. While hearing of the present appeals, ld. AR of the assessee submitted that the assessee was allowed short time and only three opportunities were granted and thereby the assessee could not file legible copy of trust deed. As regards certificate under RPT Act, the same was not provided because it was applied and as regards incomplete Form 10AB, he assured that he will submit all the details i.e. required in Form 10AB and also submit all the details so as to prove the genuineness of the activities of the trust. Based on that prayer he submitted that the matter regarding registration u/s 12AB of the Act and that of the 80G of the Act be set aside to the file of ld. CIT(E) in the interest of equity and justice.
7. On the other hand, ld. DR heavily relied upon the finding recorded in the order of ld. CIT(E) and at time same time, she did not object to the prayer of the ld. AR of the assessee to remand back the matter in the interest of justice to the file of the ld. CIT(E).
We have heard the rival contentions and perused material available on record. The Bench noted that the application u/s 12AB of the Act was rejected on account of four reasons. First is non submission of legible copy of trust deed for which the ld. AR of the assessee assured the same will be submitted and that reasons so advanced is curable. The ld. AR of the assessee also submitted that since the registration under the RPT Act is under finalization and reasons for incomplete details in Form no. 10AB, are also curable reasons as the assessee - applicant will submit the copy of registration certificate and completed form in physical to the file of the ld. CIT(E) if the matter is remanded back to the file of the ld. CIT(E). So far as the last reasons ld. AR of the assessee submitted that the required details are available but due to short time they could not be submitted before the ld. CIT(E). Therefore, considering the reasons advanced being curable in nature we are of the considered view that the assessee applicant needs one chance to contest the merits of the dispute. Based on the overall facts as discussed herein above bench adopt a lenient view and feels that the assessee should be given one more chance to advance documents before the ld. CIT(E) as to the application for registration u/s 12AB of the Act. In view of all facts and circumstances, the matter is restored to the file of ld. CIT(E) for afresh adjudication by providing by adequate opportunities of being heard to the assessee with regard to the registrations of the trust u/s 12AB of the Act. Thus, the appeal of the assessee in is allowed for statistical purposes.
Since we restore the appeal of the assessee with regard to the registration u/s 12AB of the Act to the file of ld. CIT(E) for afresh adjudication and therefore, outcome of the appeal of the assessee u/s 80G of the Act is consequential in nature and is also restored the file of ld. CIT(E). Thus, the appeal of the assessee in is also allowed for statistical purposes.
In the result, the appeals of the assessee in & 339/JP/2025 are allowed for statistical purposes.
Order pronounced in the open court on 19/05/2025.
Sd/- Sd/- ¼ujsUnz dqekj½ ¼jkBkSM+ deys'k t;UrHkkbZ½ (NARINDER KUMAR) (RATHOD KAMLESH JAYANTBHAI) U;kf;d lnL;@Judicial Member ys[kk lnL; @Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 19/05/2025 *Ganesh Kumar, Sr. PS आदेश की प्रतिलि पिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. The Appellant- Shriram Paropkari Trust, Jaipur 2. izR;FkhZ@ The Respondent- CIT, Exemption, Jaipur 3. vk;dj vk;qDr@ The ld CIT vk;dj vk;qDr¼vihy½@The ld CIT(A) 4. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. xkMZQkbZy@ Guard File (ITA Nos. 338 & 339/JP/2025) 6. vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेज. त्महपेजतंत