IWA INDIA FOUNDATION,KOLLAM vs. CIT EXEMPTION, KOCHI
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Income Tax Appellate Tribunal, COCHIN
Before: HONBLE SHRI INTURI RAMA RAO & SHRI HONBLE MANU KUMAR GIRI
आयकर अपीलीय अ�धकरण �ायपीठ, कोचीन IN THE INCOME TAX APPELLATE TRIBUNAL, COCHIN माननीय इंटूरी रामा राव, लेखा सद� एवं माननीय �ी मनु कुमार �ग�र, �ा�यक सद� के सम� BEFORE HON’BLE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI HON’BLE MANU KUMAR GIRI, JUDICIAL MEMBER आयकर अपील सं./ ITA No.759/Coch/2025 �नधा�रण वष� /Assessment Year: 2025-26 IWA India Foundation, The Commissioner of Income Tax IWA Coaching Centre, Vs. (Exemptions), Near Chinnakada Juma Masjid, Kollam. Kollam – 691 001. PAN AAGCI 4575F (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Shri Ajmar Mujahir, C.A ��यथ� क� ओर से /Respondent by : Shri Sanjit Kumar Das, CIT-DR सुनवाई क� तार�ख/Date of Hearing : 06.11.2025 घोषणा क� तार�ख /Date of Pronouncement : 28.11.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member):
This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Exemption), KOCHI [hereinafter “CIT(E)”], dated 29.09.2025, rejecting the assessee’s application in Form 10AB filed on 01.01.2025 for regularisation of provisional registration under Section 12A of the Income Tax Act, 1961.
ITA No. 759/Coch/2025 IWA India Foundation
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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.”
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The assessee has raised multiple grounds, all of which challenge
the rejection of Form 10AB on the basis that:
(a) the delay was caused due to unavoidable medical exigencies, (b) the CIT(E) failed to appreciate the bona fides and merits of the charitable activities, and (c) the CIT(E) did not exercise statutory discretion to condone delay.
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.
7 The Departmental Representative supported the order of the
CIT(E).
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
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illness, requiring prolonged medical care and restricting his ability to
attend to statutory obligations. Such circumstances constitute
a reasonable cause, as recognised in judicial precedents including
Collector, Land Acquisition v. Mst. Katiji (SC) and N. Balakrishnan v. M.
Krishnamurthy (SC).
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
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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.
Order pronounced on 28th day of November, 2025 at Cochin.
Sd/- Sd/- (इंटूरी रामा राव) (मनु कुमार �ग�र) (Inturi Rama Rao) (Manu Kumar Giri) लेखा सद� /Accountant Member �ा�यक सद� / Judicial Member Cochin, �दनांक/Dated: 28th November, 2025. EDN, Sr. P.S आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त/CIT, 4. �वभागीय ��त�न�ध/DR 5. गाड� फाईल/GF
