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Facts
The assessee's appeal against the cancellation of registration under Section 12AB(4) of the Income Tax Act was filed with a delay of 284 days. The assessee also failed to appear before the Tribunal on multiple hearing dates.
Held
The Tribunal noted that the appeal was filed with a significant delay and the assessee did not provide any valid reason or petition for condonation of delay. Furthermore, the assessee repeatedly failed to appear for hearings.
Key Issues
Whether the appeal filed by the assessee is maintainable due to a significant delay and non-appearance before the tribunal.
Sections Cited
12AB(4), 12AA, 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Hyderabad ‘A’ Bench, Hyderabad
Before: SHRI VIJAY PAL RAO & SHRI MADHUSUDAN SAWDIA
PER VIJAY PAL RAO, VICE PRESIDENT :
This appeal by the Assessee is directed against the Order dated 25.07.2024 of the learned Commissioner of Income Tax-(Exemptions), Hyderabad passed u/sec.12AB(4) of the Income Tax Act [in short "the Act"], 1961, whereby the 2 ITA.No.1152/Hyd./2025 Registration of the assessee trust u/sec.12AA/12AB has been cancelled.
There is a delay of 284 days in filing the present appeal before the Tribunal. It transpires from the record that a defect notice was issued to the assessee pointing out the defect of appeal being time barred by 284 days and not filing any petition/affidavit for condonation of delay and other defect of signing and verification of memorandum of appeal by the authorised person. Initially, one Mr. Abhishek Kumar, Advocate appeared on 10.09.2025 and sought adjournment of hearing. The adjournment was granted at the request of the assessee. However, thereafter again the Counsel for the Assessee appeared on 02.12.2025 and sought adjournment which was granted by the Bench and matter was adjourned to 05.01.2026. On 05.01.2026 nobody appeared on behalf of the assessee when the matter was called repeatedly till the Bench retired/rose. However, giving one more opportunity to the assessee, the matter was adjourned to 06.01.2026, but again there was no appearance on behalf of the assessee even
3 ITA.No.1152/Hyd./2025 on 06.01.2026. Accordingly, the Bench proposed to hear and dispose of the appeal ex-parte.
We have heard MS U Mini Chandran, learned CIT- DR for the Revenue who has referred to the impugned order of the learned CIT(E) and submitted that the enquiry and investigation conducted by the department reveal that the trust has already sold the lands measuring 16.00 acres in favour of different purchasers for a consideration of Rs.7.73 crores by executing the sale deeds over the years. But as per the return of income filed by the assessee, these transactions were not declared/disclosed nor the sale consideration received from such transactions were applied towards the objects of the assessee society and that the transactions of sale of land are in contravention of the requirement of prior permission/approval. Thus, the proceedings u/sec.12AB(4) were initiated for cancellation of the registration. However, the assessee did not respond to the notice issued by the learned CIT(E). Based on the facts on record, the learned CIT(E) has held that the assessee has committed violations for not applying the income for charitable or religious
4 ITA.No.1152/Hyd./2025 purposes or for the objects of the assessee society. Further, the assessee has not even reported the activities and transactions of sale of land in the return of income. Therefore, the activities of the assessee are not being carried out in accordance with the conditions, subject to which the registration was granted. The learned DR has further submitted that the appeal of the assessee is otherwise not maintainable being barred by limitation. He has relied upon the Order of the learned CIT(E).
Having considered the submissions of the learned DR, at the outset, we note that the present appeal of the assessee is barred by limitation of 284 days and assessee has not filed any petition for condonation of delay to explain the cause of delay. Further, despite the repeated adjournments, the assessee has not appeared before the Tribunal when the appeal was called for hearing repeatedly for 02 days. Hence, we find that the present appeal of the assessee is not a valid appeal being barred by limitation as there is a delay of 284 days in filing the present appeal. Accordingly, the same is not 5 ITA.No.1152/Hyd./2025 maintainable and liable to be dismissed. We Order accordingly.
In the result, appeal of the Assessee is dismissed.
Order pronounced in the open Court on 09.01.2026.