Loading judgment…
Facts
The assessee filed an application for regular registration under Section 80G of the Act on 02.11.2024, which was rejected by the CIT(E) for being filed beyond the prescribed time limit. The assessee claimed that they were not granted an opportunity to explain the delay.
Held
The Tribunal noted that the assessee had applied after the due date but before the expiry of provisional registration. It was held that the power to condone delay is available with the authority, and principles of natural justice require granting an opportunity to be heard before rejecting an application on grounds of delay.
Key Issues
Whether the rejection of the application for registration under Section 80G solely on the ground of delay, without providing an opportunity to explain the delay, is justified.
Sections Cited
80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 17/06/2025 passed in Application No.CIT(EXEMPTION),HYD/2024- 25/12AA/14002 for the assessment year 2025-2026. thereby rejecting the assessee’s claim for registration u/s.80G of the Act. 2. It was submitted by the ld. AR that the assessee had provisions registration for the assessment years 2022-2023 to 2024-2025. It was the submission that the assessee had applied in Form 10AB for regular registration u/s.80G of the Act on 02.11.2024. It was the submission that as the assessee had not filed the application for regular registration at least six months before the expiry of the provisional registration or within six months from the date of commencement of the activities, whichever is earlier. The ld.CIT(E) has rejected the application for registration. It was the submission that no opportunity was granted to the assessee to explain the delay. It was the prayer that the issues may be restored to the file of ld. CIT(E) so that the assessee could explain the delay.
In reply, ld.CIT-DR vehemently supported the order of the ld. CIT(E).
We have considered the rival submissions. A perusal of the facts of the present case clearly shows that the assessee has filed regular registration u/s.80G of the Act on 02.11.2024. The last date of registration is 31.03.2025. The six months prior to the end of provisional registration starts on 30.09.2024. Admittedly, the assessee has filed the application only on 02.11.2024. When the power for granting the registration is available with an authority, the power to condone the delay in filing the application is also available with the authority. This is a part of principle of natural justice and judicial jurisprudence. Before rejecting an application for registration on account of delay, it would be worthwhile to grant the assessee an opportunity of being heard. This being so, in the interest of justice, the issues in this appeal in respect of grant of registration u/s.80G of the Act is restored to the file of ld. CIT(E) for granting the assessee adequate opportunity to explain the delay in filing the application for regular registration u/s.80G of the Act.
In the result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 12/08/2025.