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Facts
The assessee, a charitable organization providing support to cancer patients, filed an application for final registration under Section 80G of the Income Tax Act. The application was dismissed by the Ld.CIT(E) due to non-prosecution. The assessee filed an appeal against this order.
Held
The Tribunal condoned the delay in filing the appeal due to a reasonable cause. It acknowledged that the dismissal was due to non-prosecution without a finding on merits. The Tribunal found that the assessee should be granted another opportunity to present its case.
Key Issues
Whether the appeal filed by the assessee against the dismissal order of Ld.CIT(E) for non-prosecution deserves to be allowed, and if a further opportunity for adjudication on merits should be granted.
Sections Cited
80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI “C” BENCH : MUMBAI
Before: SHRI VIKRAM SINGH YADAV & SHRI SANDEEP SINGH KARHAIL
Assessment Year : 2024-25 Cancare Research Foundation, Commissioner of Income Tax 25, Moti Bhuvan, (Exemptions), Dr. D‟Silva Road, vs. Room No. 601, 6th Floor, Dadar West, Cumballa Hill, Mumbai-400028. MTNL TE Building, Pedder Road, PAN : AABTC5371K Dr.Gopalrao Deshmukh Marg, Cumballa Hill, Mumbai-400026. (Appellant) (Respondent) For Assessee : Ms. Shivali Mhatre For Revenue : Shri Virabhadra Mahajan, Sr.DR Date of Hearing : 25-02-2026 Date of Pronouncement : 05-03-2026 O R D E R PER VIKRAM SINGH YADAV, A.M :
This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Exemptions)-Mumbai [„Ld.CIT(E)‟], dated 11-02-2025, where the assessee‟s application seeking final registration u/s. 80G of the Income Tax Act, 1961 („the Act‟) has been dismissed by the Ld.CIT(E) on account of non-prosecution.
At the outset, it is noted that there is a delay in filing the appeal as pointed out by the Registry. After hearing both the parties and perusing the affidavit placed on record, the contents of which have not been rebutted by the Revenue, we find that there was reasonable cause for the delay in filing the present appeal and hence, the delay is hereby condoned and appeal is admitted for adjudication.
During the course of hearing, the Ld.AR submitted that the assessee is a charitable organization carrying out charitable activities in terms of providing support to the cancer patients in Mumbai and all over India right from year 2012 and in terms of seeking approval u/s. 80G of the Act, it had obtained provisional registration vide order dt. 12-03-2022 and thereafter, it has applied for the final approval u/s. 80G of the Act, which has been dismissed by the Ld.CIT(E) for non-prosecution. It was submitted that admittedly, the notices were received from the office of ld CIT(E) and that the assessee has engaged services of a Chartered Accountant to handle the matters relating to the registrations and seeking necessary approvals u/s. 80G of the Act. However, due to lack of timely communication between the assessee and the Chartered Accountant, there is apparently non-compliance to the said notices, which has resulted in passing of the ex-parte order. It was submitted that there is no malafide intention on the part of the assessee and that the assessee is not going to gain anything in terms of not replying to the notices issued by the Ld.CIT(E) and the assessee is serious in terms of prosecuting the matter and undertakes to respond to the notices and file necessary information/documentation. It was submitted that the assessee may be provided one more opportunity and the matter may be remanded to the file of the Ld.CIT(E) for necessary adjudication on merits.
Per contra, the Ld. DR is heard, who has relied on the order passed by the Ld.CIT(E). At the same time given the fact that there is no finding on the merits of the matter, the Ld.DR did not specifically object where the matter is remitted to the file of the Ld.CIT(E).
We have heard the rival contentions and perused the material available on record. As evident from records, admittedly, there is non- compliance on part of the assessee and the Ld.CIT(E) dismissed the appeal of the assessee on account of non-prosecution and there is no finding on merits of the case and in view of the explanation furnished by the assessee and the limited prayer raised by the Ld.AR on behalf of the assessee, we are of the considered opinion that in the interest of justice, the assessee should be granted one more opportunity to represent its case diligently before the Ld.CIT(E). Consequently, we deem it fit and proper to set aside the impugned order and restore the matter to the file of the Ld.CIT(E) for necessary adjudication on merits, after providing reasonable opportunity to the assessee. We also direct the assessee to fully co-operate with the Ld.CIT(E) for expeditious disposal of the matter and is at liberty to file necessary explanation / documentation as so advised.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 05-03-2026
Sd/- Sd/- [SANDEEP SINGH KARHAIL] [VIKRAM SINGH YADAV] JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 05-03-2026 TNMM Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, ITAT, Mumbai 5) Guard file
By Order
Dy./Asst. Registrar I.T.A.T, Mumbai