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Facts
The assessee, Jan Sahyog Vikas Trust, applied for approval under Section 80G(5)(iii) of the Income Tax Act, which was rejected by the CIT(E) because the trust failed to furnish all required documents under Rule 11AA(2) despite being given opportunities. The provisional approval granted earlier was also cancelled. The assessee filed an appeal with a delay of 127 days, for which a condonation application was filed citing ignorance and poor local guidance.
Held
The Tribunal found no reasonable explanation for the assessee's non-compliance and imposed a cost of Rs. 5,000/- on the assessee, to be deposited in the Prime Minister's National Relief Fund within 15 days. Subject to this payment, the CIT(E) was directed to provide one more opportunity to the assessee to furnish the necessary details and documents, and thereafter re-adjudicate the application.
Key Issues
Rejection of application for 80G(5)(iii) approval due to non-compliance with documentation requirements and condonation of delay in filing the appeal.
Sections Cited
Section 80G(5)(iii) of the Income Tax Act, 1961, Rule 11AA(2) of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH
Before: Shri TR Senthil Kumar & Shri Narendra Prasad Sinha
आदेश आदेश/ORDER आदेश आदेश PER : NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER
This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Exemption), Ahmedabad (in short ‘the CIT(E)’) dated 22.10.2024 rejecting the application for grant of approval under Section 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
There was delay of 127 days in filing this appeal. The assessee had filed a condonation application along with an A.Y. NA Jan Sahyog Vikas Trust vs. CIT (Exemption)
affidavit explaining the reason for delay. It is stated that the assessee trust is functioning from a remote location of Banaskantha district and proper legal advice was not available at that place. The trustees are not acquainted nor competent to handle Income-tax matters on their own. The part time accountant-cum-clerk appointed for this purpose didn’t respond to the queries of Ld. CIT(E), which resulted in rejection of the application. Thereafter, he also didn’t approach the CA in time but tried to file appeal on his own. Considering the attitude of the accountant-cum-clerk, he was replaced. The assessee has submitted that the delay was not intentional but due to their ignorance and wrong advice. The delay was for the reason that due to recent changes in the Act the assessee was not clear about the exact legal remedy available to the trust and it had taken time in consulting 2 to 3 consultants of different cities. In the process, there was delay of 127 days in filing the appeal. It is submitted that the delay was due to lack of knowledge, poor and incorrect local guidance and time taken in consulting outstation consultants. Considering the explanation of the assessee, the delay in filing the appeal is condoned.
The brief facts of the case are that the assessee had made an application for approval u/s. 80G(%)(iii) of the Act by filing Form No. 10AB. The Ld. CIT(E) noticed that the assessee did not furnish all the documents enlisted in Rule 11AA(2) along with the application. The Ld. CIT(E) has allowed opportunities to the assessee to furnish the details A.Y. NA Jan Sahyog Vikas Trust vs. CIT (Exemption)
vide notice dated 20.08.2024 and 01.10.2024. However, there was no compliance to the notices. Therefore, the application of the assessee was rejected as the Ld. CIT(E) was not satisfied about the genuineness of the activities of the trust & about fulfilment of conditions as laid down u/s 80G(5) of the Act and the provisional approval granted earlier was also cancelled.
Aggrieved with the order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken in this appeal: Learned CIT(E) erred in law and facts by making the order by 1. rejecting the application filed in form 10AB for registration u/s 80G(5)(iii) of the IT act for not producing documents required by the authority. Due to non compliance by the side of Accountant, documents are 2. pending to produce against the notice issued by the authority and not submitted appeal on time against rejection order, hence we will require permission for condonation of delay in filing appeal. Appellant craves to add, alter or delete any ground either before or 3. in the course hearing of the appeal.
Ms. Urjita Shah, Ld. AR appearing for the assessee explained that the non-compliance before the Ld. CIT(E) was due to the fault of the Accountant who did not attend the proceedings. The Ld. AR requested that the assessee is engaged in charitable activities and, therefore, another opportunity may be allowed to furnish the documents as required by setting aside the matter to the file of the Ld. CIT(E).
A.Y. NA Jan Sahyog Vikas Trust vs. CIT (Exemption)
Per Contra Shri R P Rastogi, Ld. CIT-DR submitted that he has no objection if the matter was set-aside to the file of the Ld. CIT(E) for allowing another opportunity to the assessee.
We have considered the submissions of the assessee. We do not find any reasonable explanation for non-compliance before the Ld. CIT(E). In fact, the assessee was not careful and vigilant enough while filing the application in Form No. 10AB of the Act, as the documents enlisted in Rule11AA(2) were not attached along with the application. Thereafter, no compliance was made to the notices of the Ld. CIT(E) and the details and documents as required were not furnished. We therefore, deem it proper to impose a cost of Rs.5,000/- on the assessee, which should be deposited in “Prime Minister’s National Relief Fund” within a period of 15 days from the receipt of this order. Subject to the payment of cost, the Ld. CIT(E) is directed to allow one more opportunity to the assessee to furnish the details and documents as required and thereafter, re-adjudicate the application of the assessee. The assessee is also directed to comply before the Ld. CIT(E) and produce the document and clarification as required by him.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
This order is pronounced in the Open Court on 03/02/2026.