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Facts
The assessee filed two applications before the CIT(E) for registration under Section 12AB and approval under Section 80G(5)(iii) of the Income Tax Act, 1961. Both applications were rejected by the CIT(E) due to non-compliance with directions and non-furnishing of details. The assessee filed appeals against these rejections, seeking condonation of delay in filing.
Held
The Tribunal condoned the delay in filing the appeals, finding sufficient cause. The Tribunal remanded the matters back to the CIT(E) for a fresh decision after providing a reasonable opportunity of being heard to the appellant, considering that the assessee claimed to be a charitable trust.
Key Issues
Whether the delay in filing the appeals should be condoned, and whether the applications for registration under Section 12AB and approval under Section 80G(5)(iii) should be remanded to the CIT(E) for fresh consideration.
Sections Cited
12AB, 80G(5)(iii)
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Income Tax Appellate Tribunal, JAIPUR BENCHES, “ B-Bench” JAIPUR
Before: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM
vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER.
Appellant, who was applicant before Learned CIT(E), filed two applications. One was filed seeking its registration 12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). The other was filed for approval u/s 80G(5)(iii) of the Act. Both said applications stand rejected vide separate order dated 24.12.2024. 2. That is how, the applicant is before this Appellate Tribunal.
& 349/JPR/2025 Manav Vikas Shodh Evam Sewa Sansthan, Jaipur 3. While presenting the appeals, no application seeking condonation of delay was filed. Today, an application has been presented seeking condonation of delay in respect of the appeals.
The application is supported by an affidavit of Shri Som Dutt, one of the trustees of the applicant society.
Arguments heard. File perused.
As noticed above, the impugned orders are dated 24.12.2024. On behalf of the appellant, it has been submitted that appeals were prepared on 27.02.2025, but the same were signed on 06.03.2025, the reason being that Shri Shrawan Kumar Gupta, Advocate representing the applicant was away to his native village upto 5th March, due to demise of his mother. Accordingly, prayer is that because of this sufficient cause, delay in filing of the appeals be condoned.
On behalf of the Department, there is no objection to the condonation of delay in filing of the appeals on the aforesaid ground. We have considered the issue of delay in filing of the appeals. We feel satisfied that there was sufficient cause for non filing of the appeals within the prescribed period of limitation. Accordingly, the application is allowed and delay in filing the appeals is condoned.
& 349/JPR/2025 Manav Vikas Shodh Evam Sewa Sansthan, Jaipur 8. Arguments have been advanced today itself, in each appeal on merits as well. 9. The application u/s 12AB of the Act, came to be rejected on the following grounds:- Grounds of profitability. Registration under Rajasthan Public Trust act, 1959. Non Genuineness of activities.
Registration under Rajasthan Public Trust Act, 1959.
As regards the second mentioned ground of rejection, Learned Counsel for the appellant submits that registration certificate under RPT Act, 1959, has been issued and that the same may be allowed to be produced before Learned CIT(E), the reason being that earlier the same could not be obtained by the applicant society. Non Genuineness of Activities and profitability 11. As regards both these grounds of rejection, Learned Counsel for the appellant submits that the applicant could not furnish certain details which were required by Learned CIT(E). Again, the submission is that by remanding the matter to Learned CIT(E), another opportunity be granted to & 349/JPR/2025 Manav Vikas Shodh Evam Sewa Sansthan, Jaipur the appellant-applicant to submit there requisite details/documents/information about its activities.
It is available from the impugned order based on application u/s 12AB of the Act that vide show cause notice dated 07.12.2024, certain discrepancies were pointed out to the applicant by Learned CIT(E), but the application came to be rejected when Learned CIT(E) observed that due to non compliance/non submission of information by the applicant, its activities were not verifiable/determinable.
Of course, it was for the applicant to comply with the directions issued by Learned CIT(E) so that he could effectively adjudicate all the issues involved. Even though the applicant failed to comply with all the directions, having regards to the facts that the applicant claims itself to be a charitable trust and the issues involved, we deem it a fit case to remand the matter to Learned CIT(E) for decision of the application afresh, after providing reasonable opportunity of being heard to the appellant.
For the above said reasons, the appeal is disposed of for statistical purposes and the matter is remanded to Learned CIT(E), for decision of the application afresh, after providing reasonable opportunity of being heard to the appellant.