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Facts
The assessee filed applications for registration under section 12A(1)(ac)(iii) and approval under section 80G(5) of the IT Act on 10.12.2024, which was after the due date of 06.08.2024. The Ld. CIT (Exemption) rejected these applications due to the delay and cancelled the provisional registration, leading the assessee to appeal.
Held
The Tribunal condoned the delay in filing the appeals and noted the insertion of a proviso in section 12A(1)(ac) w.e.f. 01.10.2024, which allows the Commissioner to condone delay for reasonable cause. Therefore, the Tribunal set aside the CIT(E)'s orders and remanded both the applications back to the CIT(E) for fresh adjudication after providing the assessee a reasonable opportunity of hearing to explain the delay.
Key Issues
Whether the applications for registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5) could be rejected solely on grounds of belated filing, particularly in light of a new proviso allowing condonation of delay.
Sections Cited
Section 12A(1)(ac)(iii), Section 80G(5), Section 12A(1)(ac), Section 12A(1)(ac)(vi)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 03.06.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act filed on 10.12.2024 and denying the application for approval in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act filed on 13.12.2024.
There is delay in filing of both above captioned appeals. We are satisfied with the reasons mentioned in the application for condonation of delay duly supported by an affidavit that the applicant was prevented by sufficient cause for not filing the appeals within the prescribed time limit. After hearing Ld. DR, we condone the delay and proceed to adjudicate the appeals.
: 3. Facts of the case, in brief, are, that the assessee filed its application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of IT Act on 10.12.2024. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, notices were issued by Ld. CIT, Exemption, Pune through ITBA portal on 22-01-2025 & 23-04-2025 respectively. It was specifically pointed out by Ld. CIT, Exemption, Pune that the application for registration was required to be filed by 06-08-2024 however the same was filed belatedly i.e. on 10-12-2024 & therefore the same deserves to be rejected. In compliance to this query, the assessee could not furnish any reply & therefore the application for registration was rejected by Ld. CIT, Exemption, Pune and the provisional registration under Item (A) of sub-clause (vi) of clause (ac) of sub-section (1) of section 12A of the IT Act granted to the assessee on 07.03.2024 was also cancelled.
It is this order against which the assessee is in appeal before this Tribunal.
Ld. AR appearing from the side of the assessee submitted before us that the order passed by Ld. CIT, Exemption, Pune is not justified. Ld. AR submitted before the Bench that the delay was unintentional and bonafied due to which the application could not be furnished upto 06.08.2024. Ld. AR further submitted that w.e.f. 01.10.2024 a proviso is inserted in section 12A(1)(ac) which permits the Commissioner to condone the delay if he considers that there is a reasonable cause for delay in filing the application for registration and then such application shall be deemed to have been filed within time. Accordingly, it was requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune and further requested to grant registration after condoning the delay.
Ld. DR appearing from the side of the Revenue relied on the order of Ld. CIT, Exemption, Pune and requested to confirm the same.
We have heard Ld. Counsels from both the sides and perused the material available on record. We find that admittedly the assessee could not furnish any reply before Ld. CIT, Exemption, Pune. However, we find force in the arguments of Ld. Counsel of the assessee that a proviso has been inserted in section 12A(1)(ac) w.e.f. 01.10.2024 which permits the Commissioner to condone the delay if he considers that there is a reasonable cause for delay in filing the application for registration and then such application shall be deemed to have been filed within time.
Considering the totality of the facts of the case, & also in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him to decide the application for registration afresh and as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to explain the reason of delay in filing of application for registration without taking any adjournment under any pretext, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal
raised by the assessee are allowed for statistical purposes.
1. 9. In the result, the appeal filed by the assessee in is allowed for statistical purposes. :
1. 10. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(iii) to the file of Ld. CIT, Exemption, Pune for de novo adjudication, therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s 80G(5) as well to the file of Ld. CIT, Exemption, Pune being consequential, for de novo adjudication.