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Facts
The assessee, Education India, applied for registration under Section 12(1)(ac)(vi)-ITEM(B) of the Income Tax Act, 1961, which was rejected ex-parte by the CIT (Exemption) on grounds of non-compliance with notices. The assessee appealed, seeking condonation of a 19-day delay and claiming inadequate opportunity of being heard after downloading the order late.
Held
The Tribunal condoned the 19-day delay in filing the appeal. It held that the CIT (Exemption) had erred by rejecting the registration application without providing the assessee a reasonable opportunity to present its case. The Tribunal set aside the CIT(E)'s order and remanded the matter for fresh adjudication after granting a proper hearing to the assessee.
Key Issues
Whether the CIT (Exemption) was justified in rejecting the registration application ex-parte without providing reasonable opportunity of being heard; Condonation of delay in filing the appeal.
Sections Cited
Section 12AA of the Income Tax Act, 1961, Section 12(1)(ac)(vi)-ITEM(B) of the Income Tax Act, 1961, Section 253(3) of the Income Tax Act, 1961, Section 253(5) of the Income Tax Act, 1961, Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963
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Income Tax Appellate Tribunal, GUWAHATI BENCH AT KOLKATA
Before: SHRI MANOMOHAN DAS & SHRI RAKESH MISHRA
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Exemption)-Kolkata [hereinafter referred to as the ‘Ld. CIT (Exemption)’] passed in respect of registration u/s 12AA of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 14.10.2024. 1. 1. Along with the appeal memo, the assessee has filed an affidavit and a petition seeking condonation of delay of 19 days, even though the Registry has not pointed out any such delay. The contents of the petition are as under: “Most respectfully the Undersigned begs to submit on behalf of the Appellant, Education India the following few lines for your sympathetic I.T.A. No.: 15/GTY/2025 Assessment Year: N.A. Education India. consideration for admitting the appeal which is belatedly filed on 18.01.2025 against the Order for registration or approval or rejection or cancellation passed by the Ld. Commissioner of Income Tax (Exemption), Kolkata vide dated 14.10.2024 in Form No.10AD bearing Application No. CIT (Exemption), Kolkata/2024-25/12AA/10932 on the application for Registration u/s 12(1)(ac)(vi)-ITEM(B) of the I.T. Act, 1961 filed by the Appellant.
That your honour, the Undersigned likes to submit that the Appellant is an AOP (Trust) and filed an application in Form No.10AB for Registration u/s 12(1)(ac)(vi)-ITEM(B) of the I.T. Act, 1961 on 02.04.2024. 3. That your honour, the Undersigned also likes to submit that the Undersigned is in receipt of Order for registration or approval or rejection or cancellation in Form No.10AD passed by the Commissioner of Income Tax (Exemption), Kolkata vide dated 14.10.2024 on the application for Registration filed by the Appellant u/s 12(1)(ac)(vi)-ITEM(B) of the I.T. Act, 1961 through the income tax e-filing portal.
That your honour, the Undersigned downloaded the aforesaid order dated 14.10.2024 from the income e-filing portal only on 16.12.2024 as the Undersigned did not consult the e-filing portal on regular basis.
That your honour, the Ld. Commissioner of Income Tax (Exemption), Kolkata rejected the application for Registration u/s 12(1)(ac)(vi)-ITEM(B) of the I.T. Act, 1961 vide order dated 14.10.2024 on the ground that no compliance was made by the Appellant in response to the Notices issued on 26.09.2024 & 04.10.2024 and decided the matter ex-parte without providing reasonable opportunity of being heard at-least for three consecutive times which your honour kindly appreciate.
That your honour, the Undersigned after receiving the aforesaid Order consulted the matter with the Authorized Representative to take remedial action as per law provides in by way of filing an appeal before the Hon’ble Income Tax Appellate Tribunal, Gauhati Bench Guwahati against the order passed by the Ld. Commissioner of Income Tax (Exemption), Kolkata but the Authorized Representative namely, Sri Bijan Kr. Bhattacharjee, Chartered Accountant who is in Guwahati has been suffering from cold & fever and therefore not in a position to prepare & file the appeal in Form No.36 within the due date of filing of appeal before the Hon’ble ITAT, Gauhati Bench, Guwahati as specified in amended provisions sub-clause (3) of Section 253 of the I.T. Act, 1961 w.e.f. 01.10.2024 due to the circumstances stated hereinabove & thereby delay is caused by 19 days in filing the appeal before the Hon’ble ITAT, Gauhati Bench, Guwahati. I.T.A. No.: 15/GTY/2025 Assessment Year: N.A. Education India. In the above premises it is also submitted that the Undersigned executed an Affidavit under the juri iction of the High Court of Meghalaya located in Shillong as the filing of Affidavit narrating the circumstances which compelled the undersigned to file the appeal belatedly on 18.01.2025 becomes part of the prayer to be made for condonation of delay in filing the appeal before the Hon’ble Income Tax Appellate Tribunal, Gauhati Bench, Guwahati as per provisions of Section 253(5) so the petition for condonation of delay of 19 days in filing the appeal could not be made along with filing of appeal on 18.01.2025 in Form No.36 with requisite papers & evidences. Prayer is therefore made before the Hon’ble Bench to kindly consider the prayer of the Undersigned sympathetically & to admit the appeal and for this the Undersigned shall remain grateful before the Hon’ble Bench. A copy of the Affidavit executed by the Undersigned is enclosed for the Hon’ble Income Tax Appellate Tribunals perusal.”
We have considered the submission made in the affidavit and petition filed. Since the Registry has not pointed out any such delay and there is sufficient cause for the delay, if any, in filing the appeal; the same is hereby condoned and the appeal is admitted for adjudication.
The assessee is in appeal before the Tribunal raising the following grounds of appeal:
“1. For that the rejection of application for Registration u/s 12(1)(ac)(vi)- ITEM(B) of the I.T. Act, 1961 vide Form No.10AD dated 14.10.2024 by the Ld. Commissioner of Income Tax (Exemption), Kolkata is irregular & bad in law and therefore liable to be annulled.
For that the Ld. Commissioner of Income Tax (Exemption), Kolkata has erred in rejecting the application filed by the Appellant in Form No.10AB for Registration u/s 12(1)(ac)(vi)-ITEM(B) of the I.T. Act, 1961 on 02.04.2024 without providing reasonable opportunity of being heard and the order so passed is liable to be quashed.
For that the Appellant reserves the rights to add further grounds of appeal on or before hearing of the appeal.”
Rival contentions were heard and the submissions made have been examined. During the course of the appeal the Ld. AR requested for another opportunity to be provided before the Ld. CIT(E) as the assessee has evidence which could not be filed earlier as adequate I.T.A. No.: 15/GTY/2025 Assessment Year: N.A. Education India. opportunity was not provided. The Ld. DR countered by stating that adequate opportunity was provided to the assessee and the assessee did not have any evidence and requested that the order of the Ld. CIT(E) may be confirmed. However, the Bench was of the view that the Ld. CIT (Exemption) had denied the claim of exemption u/s 12AA of the Act on account of non-compliance by the assessee. Therefore, in the interest of justice, it was considered imperative that the assessee may be granted another opportunity to file its submission in response to the notice issued by the Ld. CIT (Exemption) for justifying the genuineness of the activities and claim of exemption. Hence, the order of the Ld. CIT (Exemption) is set aside and the matter is remanded to him for deciding the application afresh after granting an opportunity of being heard to the assessee and seeking the reply from the assessee in respect of the queries raised and thereafter pass an order in accordance with law.
In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced on 15th September, 2025 under Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963. [Manomohan Das] [Rakesh Mishra] Judicial Member Accountant Member Dated: 15.09.2025 Bidhan (Sr. P.S.) I.T.A. No.: 15/GTY/2025 Assessment Year: N.A. Education India. Copy of the order forwarded to:
Education India, B.T. Hostel, Shillong, Meghalaya-793001. 2. ITO, Ward-1, Shillong.
CIT(A)-
CIT-
CIT(DR), Guwahati Benches, Guwahati.
Guard File. //// By order