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Facts
The assessee, Sai Shruti Charitable Trust, appealed against the ex-parte rejection of its second application for 80G(5) registration by the CIT(Exemption). There was a delay of 255 days in filing the appeal, which the assessee attributed to being unaware of the appeal process due to its location and lack of prior litigation, despite having 12AB registration.
Held
The tribunal condoned the 255-day delay in filing the appeal, imposing a cost of Rs. 5,000/- on the assessee. It directed the CIT(Exemption) to grant another opportunity of hearing to the assessee and decide the matter concerning the 80G(5) registration in accordance with the provisions of law.
Key Issues
Whether the CIT(Exemption) erred in rejecting the 80G(5) application ex-parte without sufficient opportunity of hearing, and whether the delay in filing the appeal should be condoned.
Sections Cited
Section 80G(5), Section 12AB, Section 80G(5)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH
Before: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha
Assessee Represented: Shri Mehul K. Patel, Advocate Revenue Represented: Shri R.P. Rastogi, CIT-DR Date of hearing : 20-01-2026 Date of pronouncement : 22-01-2026 आदेश/ORDER PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER
This appeal is filed by the Assessee as against exparte order dated 24.12.2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
The registry has noted that there is a delay of 255 days in filing the above appeal. The assessee Trust filed a Notarized Affidavit explaining that the Trust is granted permanent registration u/s. 12AB of the Act vide order dated 20-10-2021 and first application 2 Sai Shruti Charitable Trust Vs. CIT(E) for registration u/s. 80G(5) was rejected vide order dated 16-05- 2024 and made second application which is rejected by present impugned order dated 24-12-2024. The assessee Trust being located in interior part of Anand, It was not aware that separate appeal is to be filed against the order. Further, the assessee trust had never faced income tax litigation in the past and also granted registration u/s. 12AB of the Act. This has resulted in a delay of 255 days in fling the above appeal. Therefore requested to condone the delay.
Ld. CIT-DR appearing for the Revenue submitted that this appeal is against the second application filed by the assessee. Hence for the delay, appropriate cost be levied on the assessee Trust for setting-aside the matter back to the file of Ld. CIT(E).
The Grounds of Appeal
raised by the assessee are as follows: (1) That on facts, and in law, the learned CIT(Exemption) has grievously erred in not granting sufficient and reasonable opportunity of hearing and in rejecting the application for approval u/s 80G(5)(iii) of the Act, vide ex-parte order. (2) That on facts and in law, the application made u/s 80G(5)(iii) ought to have been granted by learned CIT(Exemption) as prayed for. (3) The appellant craves leave to add, alter, amend any ground of appeal.
5. We have heard rival submissions and considered the materials available on record and we hereby impose a cost of Rs.5,000/- payable by the assessee to the Income Tax Department within two weeks of receipt of copy of this order and the delay of 255 days is hereby condoned.
3 Sai Shruti Charitable Trust Vs. CIT(E)
On production of payment of challan by the assessee Trust to Ld. CIT(E), we direct the Ld. CIT(E) to give one more opportunity of hearing to the assessee and decide the matter in accordance with the provisions of law.
In the result, the appeal filed by the Assessee is treated as allowed for statistical purpose.
Order pronounced in the open court on 22 -01-2026