RMCANA INDIA FOUNDATION,KAKINADA vs. CIT (EXEMPTION), HYDERABAD

The learned AR of the assessee has submitted that due to the mis-communication between the assessee foundation and the Tax Consultant at Delhi, the application for condonation of delay could not be filed before the CIT (Exemption). He has now filed an application for condonation of delay along with an affidavit to explain the cause of delay of 10 and 13 days in filing the applications in Form 10AB seeking registration u/s 12A and approval u/s 80G respectively of the I.T. Act, 1961. The learned AR has thus, submitted that the delay was beyond the control of the assessee and the CIT (Exemption) could have given an opportunity to the assessee to explain the reasons for delay in filing the application. He has referred to the proviso to section 12A of the Act and submitted that after the insertion of the said proviso vide Finance Act, 2024 w.e.f. 1/10/2024, the Pr. CIT or the CIT ought to have considered the reasonable cause for delay in filing the application and condone such delay. Thus, the learned AR has submitted that the impugned orders were passed by the CIT (Exemption) on 29/01/2025 much after the insertion of the said proviso to section 12A of the I.T. Act, 1961, but without considering the same. Hence, he has pleaded that the matters may be remanded to the record of the CIT (Exemption) for re-consideration on the point of condonation of delay as well as deciding the application for registration u/s 12A and approval u/s 80G of the Act on merits.

On the other hand, the learned DR has objected to the condonation of delay in filing the application and submitted that the assessee has not filed any application or otherwise explained the cause of delay in filing the application in Form-10AB for registration u/s 12A as well as approval u/s 80G of the I.T. Act, 1961. He has relied upon the impugned orders of the learned CIT (Exemption).

We have considered the rival contentions as well as the relevant material available on record. The CIT (Exemption) has rejected both the applications of the assessee seeking registration u/s 12 as well as u/s 80G of the Act on the identical grounds in paras 3 & 4 as under:

The assessee has pointed out that there was a delay of 10 days and 13 days in filing the application for registration u/s 12A and approval u/s 80G of the Act respectively and the said

Thus, it is clear that after the insertion of this proviso, the Pr. CIT/CIT while considering the application for registration u/s 12A and approval u/s 80G of the I.T. Act, 1961 is empowered to condone the delay, if there is a reasonable cause for such delay in filing the application. The learned CIT (Exemption) while passing the impugned order has not considered the above proviso inserted by Finance Act, 2024 w.e.f. 1/10/2024. Now the assessee has filed the affidavit to explain the cause of delay which is required to be considered at the level of the learned CIT (Exemption). Accordingly, in the facts and circumstances of the case and in the interest of justice, both the matters regarding registration u/s 12A and approval u/s 80G of the I.T. Act, 1961 are remanded to the record of the learned CIT (Exemption) for

In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 27th May, 2025. Sd/- Sd/- (S. BALAKRISHNAN) (VIJAY PAL RAO) ACCOUNTANT MEMBER VICE-PRESIDENT Hyderabad, dated 27th May, 2025 Vinodan/sps Copy to: S.No Addresses 1 RMCANA INDIA Foundation, Ramcosa House, Madhava Nagar, Kakinada, East Godavari Distt. A.P 533003 2 CIT (Exemption) Hyderabad 3 Pr.CIT (E) Hyderabad/Addl/Joint CIT (Exemption) Range, Vijayawada and Assessing Officer Exemption Ward, Rajahmundry 4 DR, ITAT Visakhapatnam Bench 5 Guard File By Order