IWA INDIA FOUNDATION,KOLLAM vs. CIT EXEMPTION, KOCHI

Facts in brief are that the assessee is a charitable organisation registered under the Societies Registration Act and was granted provisional registration u/s 12A vide Form 10AC dated 30.10.2023. Under the statutory provisions, the assessee was required to file Form 10AB within six months of commencement of charitable activities or before expiry of provisional registration (30.06.2024), whichever was earlier.

The assessee filed Form 10AB on 01.01.2025, delayed by approximately six months. During the proceedings before the CIT(E), the assessee submitted a reasoned request for condonation of delay, supported by medical documents, explaining that the delay occurred due to the severe and sudden illness of the Director, Mujeeb Rehman, who was responsible for statutory compliance. The medical condition and hospitalization rendered him incapable of attending to the preparation and filing of Form 10AB on time.

The CIT(E), however, rejected the application solely on the technical ground of delay, with the finding that the assessee had “failed to provide any valid or genuine reasons for the delay.”

The assessee has raised multiple grounds, all of which challenge the rejection of Form 10AB on the basis that:

The learned counsel for the assessee reiterated that the delay was neither deliberate nor intentional, but caused due to medical emergencies, which are well-recognized as “reasonable cause” under the Act and judicial precedents.

We have carefully considered the submissions and perused the material on record. The CIT(E) has rejected the assessee’s application only on the procedural ground of delay without examining the reasons furnished and without evaluating the merits of the assessee’s charitable activities. The medical records placed before us clearly demonstrate that the assessee’s key functionary suffered from serious

The CIT(E) was vested with discretion u/s 119(2)(b) read with Section 12A/12AB to condone delay where genuine and bona fide reasons existed. The complete disregard of medical evidence and non-speaking nature of the order renders it unsustainable in law. This is a fit case where the matter should be remanded to the CIT(E), with a direction to consider the condonation request afresh and then examine the merits of registration.

In view of the above observations, the impugned order of the CIT(E) dated 29.09.2025 is hereby set aside and the matter is restored to the file of the CIT(E) with a directions that the CIT(E) shall consider the assessee’s application for condonation of delay afresh, taking into account the medical exigencies supported by evidence. The CIT(E) shall then adjudicate the assessee’s Form 10AB application on merits, in :- 5 -: accordance with law. Needless to say, the assessee shall be granted adequate opportunity of being heard.

In the result, appeal filed by the assessee is allowed for statistical purpose.