PURVANCHAL CHINMAYA SEVA TRUST,GUWAHATI, ASSAM vs. INCOME TAX OFFICER, WARD-2(3) (EXEMP), WARD-2(3) (EXEMP), GUWAHATI, GUWAHATI, ASSAM

Thereafter, on 20/01/2023, the appellant in compliance to the aforesaid notice dtd.30/12/2022, submitted all the requisitioned documents, including its activity report, plan of action, supporting documents establishing its ongoing charitable activities, details of donations, declarations, etc.

Despite the appellant's full compliance and submission of all details as requisitioned vide notice dtd.30/12/2022, the Ld. CIT(E), Kolkata, vide order dtd.27/01/2023, rejected the appellant's application filed in Form 10AB for registration under clause (iii) of the first proviso to Section 80G(5) of the Act. The Ld. CIT(E) held that the said application was, prima facie, non- maintainable and premature on the ground that the provisional registration granted earlier vide Form 10AC remained valid up to Assessment Year 2025- 26. Consequently, the application was treated as non-maintainable. It is pertinent to note here that in the said order dtd.27/01/2023, the Ld. CIT(E) explicitly recorded that no adverse inference was drawn against the appellant. Copy of order in Form 10AD dtd.27/01/2023 is enclosed herewith and marked as ANNEXURE-B.

Aggrieved by the aforesaid rejection order dated 27.01.2023, the appellant vide its petition dated 15/05/2023 filed before the Ld. CIT(E), Kolkata, applied for rectification U/s.154 of the Act of his order dtd.27/01/2023. The said petition was sent through Speed Post dtd.18/05/2023 (Consignment No. ES984540143IN), contending that the appellant was rightly covered under clause (iii) of the first proviso to sub-section (5) of Section 80G of the Act. The said rectification petition is yet to be disposed of. Copy of appellant's petition Trust dtd.15/05/2023 and Speed post consignment receipt dtd.18/05/2023 are enclosed herewith and collectively marked as ANNEXURE-C.

That as per clause (iii) of first proviso to section 80G(5) of the Act, where trust or institution has been provisionally approved, an application in the prescribed 2 Purvanchal Chinmaya Seva Trust form and manner can be made atleast six months prior to expiry of the provisional registration or within six months of commencement of its activities, whichever is earlier. Our trust is an existing Trust formed on 29/08/1987 and has been carrying out activities since then. Accordingly, the appellant's case was clearly covered under the aforesaid provisions of the Act. The statute nowhere bars filing of Form 10AB under clause (iii) of first proviso to section 80G(5) of the Act merely because a provisional registration is still in force.

That due to inadvertence, procedural confusion, and the bona fide belief that the application had been rejected merely for statistical purposes and not through a final adjudication, the appellant did not file an appeal immediately. Moreover, the appellant was under the impression that the provisional approval granted in Form 10AC, valid up to A.Y. 2025-26, remained effective. Furthermore, the appellant was expecting that its petition dtd.15/05/2023 U/s.154 of the Act filed on 18/05/2023, for rectification of Order dtd.27/01/2023 passed by CIT(E), Kolkata, shall be considered and allowed. However, the said petition is still pending for disposal. The delay in filing the present appeal is therefore, entirely unintentional, and deserves to be condoned in the interest of justice.

That upon consultation with legal and tax professionals, the appellant was advised that such a rejection order is indeed appealable U/s.253(1)(c) of the Act, and the same is required to be contested to safeguard the appellant's rights.

That the order under appeal was passed on 27/01/2023. This appeal ought to have been filed on or before 29/03/2023. Thus, there is a delay of 780 days in filing this appeal.

That the delay in filing the appeal is purely unintentional and caused by a bona fide and reasonable belief, without any malafide intention or negligence. Under the circumstances, it is prayed that the delay in filing this appeal may and it be admitted for hearing for doing substantial justice in the matter.” 1.1 Considering the detailed reasons given in the said petition, the delay is hereby condoned and the appeal is admitted for adjudication.

In this case, the appeal arises from the order under Section 80G of Income Tax Act, 1961 (hereafter “the Act”) passed by the Ld. Commissioner of Income Tax (Exemptions)], Kolkata [hereafter “the Ld. CIT(E)”], dated 27.01.2023. We find that in the impugned order, there is a very cryptic finding as under:

Before us, the Ld. AR stated that the Ld. CIT(E) has rejected the assessee’s application merely because the application was filed while the earlier order in Form 10AC was still valid till AY 2025-26. The Ld. AR stated that this was not in conformity with the law and requested that the Ld. CIT(E) should be directed to consider the application u/s 80G of the Act on merit.

We have carefully considered the submissions of Ld. AR/DR and Purvanchal Chinmaya Seva Trust have gone through the records. We find that the Ld. CIT(E) has dealt with this issue in a very cryptic and non-speaking manner. It has also not been mentioned as to why an application filed while an earlier exemption was still in force, could not be entertained by him. Accordingly, we set aside the impugned order and direct the Ld. CIT(E) to consider the assessee’s application on merit for the purposes of registration u/s 80G of the Act.