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Facts
The assessee filed an appeal challenging an order dated 19/06/2023 from the CIT(E) rejecting their application for registration under Section 12A(1)(ac). There was a significant delay of 552 days in filing the appeal. The assessee attributed the delay to their lack of awareness of modern technology and their residence in a remote tribal area, which prevented them from receiving notices and the impugned order.
Held
The Tribunal acknowledged the peculiar facts and circumstances, including the assessee's remote location and lack of education. Considering a lenient view, the delay of 552 days was condoned, subject to a deposit of ₹22,000. The Tribunal also noted that the original issue of registration under Section 12A needed proper adjudication.
Key Issues
Whether to condone the significant delay in filing the appeal and restore the matter for fresh adjudication on merits, considering the assessee's circumstances.
Sections Cited
12A(1)(ac), 12AB
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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI NARENDRA KUMAR CHOUDHRY & SHRI K.M. ROY, ACCOUNTANT, MEMBER
Date of Hearing – 19/06/2025 Date of Order – 19/06/2025
O R D E R PER N.K. CHOUDHRY, J.M.
The present appeal has been filed by the assessee challenging the impugned order dated 19/06/2023 by the learned Commissioner of Income Tax (Exemption), Pune, [“learned CIT(E)”], rejecting the application dated 21/12/2022, filed by the assessee in Form no.10AB, under clause (iii) of section 12A(1)(ac) of the Income Tax Act, 1961 (for short "the Act").
2 Saksham Kushthanteya Swabhimani Sanstha Nagbhid ITA no.154/Nag./2025
At the outset, it is observed that there is a delay of 552 days in filing of the instant appeal before the Tribunal. The assessee filed following submissions:–
“APPLICATION FOR CONDONATION OF DELAY The impugned order dt. 19.06.2023 u/s.12AB r.w.s. 12A(1)(ac)(vi) of the I.T.Act, 1961 was passed by the C.I.T. Exemption, Pune and uploaded on the e-filing profile of the Appellant on the same day. The Appeal against the same ought to have been filed on or before 18.08.2023, but the same is being filed today i.e. on 28.01.2025. Hence, there is a delay of 559 days in filing the said Appeal. The Appellant has not much aware of modern technologies and not use to see email or any other electrical communication in day to day basis. The Appellant has also not familiar to Mobile. They have only use the Mobile for calling someone or pickup the phone only. The Appellant live in very interior place of tribal area. The Appellant don't know whose email address they have provided and hence did not receive any notices or the impugned order. They were totally unaware that the impugned order was in fact passed and had been communicated the said order through email. Appellant came to know about the impugned order only at the time when they received Show Cause Notice dt.02.01.2025 issued by Assessment Unit, Income Tax Department. The Appellant with the help of the local C.A. immediately took print out of the impugned order and approached the counsel at Nagpur to prepare and file the captioned Appeal. Thereupon, the counsel hurriedly prepared the Appeal and is filing the same today without any further loss of time. Under the above circumstances, the delay was not attributable to the Appellant and therefore in the interest of justice delay in filing the present appeal, if any, may kindly be condoned. No prejudice is going to be cause to the Revenue, if delay is condoned and appeal will heard and decided on merits. PRAYER: It is prayed that the delay of about 559 days in filing the present Appeal may kindly be condoned.”
The assessee, therefore, on the aforesaid reasons has claimed that the delay was not attributable to the assessee and hence in the 3 Saksham Kushthanteya Swabhimani Sanstha Nagbhid ITA no.154/Nag./2025 interest of justice, the delay in filing the instant appeal, if any, be condoned. The assessee has also claimed that no prejudice shall be cause to the Revenue Department, if the delay is condoned and the matter be heard on merit.
The learned Departmental Representative refuted the submissions made by the assessee.
We have given our thoughtful consideration to the peculiar facts and circumstances of the case. The assessee has demonstrated the reason for delay in filing of the present appeal. The assessee also stated that he lives in a very interior of tribal area and do not know the e–mail I.D. and hence did not receive the notices issued by the Revenue Department. The assessee was unaware that the impugned order has been passed, as it being connected through e–mail. The assessee came to know about issuance of impugned order only on 02/01/2025. Subsequently, the assessee, with the help of local Chartered Accountant received the printed copy of the order and then only he approached the counsel situated at Nagpur and was able to file the captioned appeal. The concerned counsel then hurriedly filed the appeal without any further loss of time.
The assessee has also filed a duly sworn affidavit. The fact, as claimed by the assessee that, he lives in a remote area which is not in 4 Saksham Kushthanteya Swabhimani Sanstha Nagbhid ITA no.154/Nag./2025 dispute. It is also not in controversy that the assessee is not a highly educated person. Considering the aforesaid peculiar facts and circumstances and while taking a lenient view, the delay of 552 days in filing of the present appeal, is hereby condoned, however, subject to deposit of ` 22,000/– (Rupees twenty two thousand only) within 15 days of this order in the Revenue Department under “other head”.
Coming to the merits of the case, the learned Departmental Representative, submitted that in spite of issuance of various notices, the assessee has not made any compliance and, therefore, in such circumstances the learned CIT(E) was constrained to reject the application filed by the assessee for registration under section 12A of the Act and to cancel the provisional registration granted on 28/12/2022 and, therefore, the learned D.R. has claimed that conduct of the assessee deserve no leniency.
We have given our thoughtful consideration to the peculiar facts and circumstances of the case. No doubt, the contention of the learned Departmental Representative seems to be plausible, however, it is a fact that in the absence of reply/submissions/supporting documents, the issue involved for registration under section 12A of the Act remained to be adjudicated in its right perspective and proper manner and thus for just and proper decision of the case and substantial justice, we are inclined to restore the entire matter back
5 Saksham Kushthanteya Swabhimani Sanstha Nagbhid ITA no.154/Nag./2025 to the file of the learned CIT(E) for decision afresh, but subject to cost of ` 5,500/– (Rupees five thousand and five hundred only) to be deposited within 15 days from the date of this order, in the Revenue Department under “Other Head”. The assessee is also directed to file the relevant submissions/documents as would be essential and required by the learned CIT(E). We clarify that in case of subsequent default, the assessee shall not be entitled for any leniency.
In the result, appeal of the assessee is allowed for statistical purposes, in terms as indicated above. Order pronounced in the open Court on 19/06/2025