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Facts
M/s Pyaro Devi Sewa Trust filed two appeals challenging the rejection of its applications for Section 12A registration and Section 80G approval. For the Section 12A appeal, the assessee contended that registration had already been granted for a subsequent application, rendering the appeal infructuous. For the Section 80G appeal, there was a 418-day delay in filing, which the assessee sought to condone, attributing the delay and prior non-compliance to a trustee's inadvertence and a bona-fide belief.
Held
The Tribunal dismissed the appeal related to Section 12A registration (ITA No.28/Del/2024) as infructuous since the assessee had already obtained the registration. For the Section 80G approval appeal (ITA No.27/Del/2024), the Tribunal condoned the delay, set aside the rejection order, and restored the matter to the CIT(Exemptions) for de-novo adjudication, directing the assessee to be given a reasonable opportunity of being heard and to comply with all queries.
Key Issues
Whether the appeal for Section 12A registration became infructuous; Whether the 418-day delay in filing the appeal for Section 80G approval should be condoned; Whether the rejection of the Section 80G approval application solely due to non-compliance warranted a remand for fresh adjudication.
Sections Cited
Section 12A, Section 80G, Section 12AB
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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL
Before: SHRI SAKTIJIT DEY, HON’BLE VICE SHRI SAKTIJIT DEY, HON’BLESHRI SAKTIJIT DEY, HON’BLE & SHRI AVDHESH KUMAR MISHRA, HON’BLE ACCOUNTANT SHRI AVDHESH KUMAR MISHRA SHRI AVDHESH KUMAR MISHRA , HON’BLE
Per Saktijit Dey, Vice Per Saktijit Dey, Vice President Per Saktijit Dey, Vice Per Saktijit Dey, Vice President President : President
Captioned appeals have been filed by the assessee challenging two separate orders passed by learned Commissioner of Income Tax (Exemptions), Delhi rejecting assessee’s application seeking registration under Section 12A and approval under Section 80G of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). challenging rejection of application for registration under Section 12A is concerned, Shri Gautam Jain, learned Counsel appearing for the assessee submitted that while considering the subsequent application filed by the assessee, learned CIT(Exemptions) has granted registration under Section 12A of the Act. Thus, he submitted the appeal has become infructuous.
Learned DR agreed with the aforesaid submission of the assessee.
In view of the submissions made by the parties, the appeal, having become infructuous, is dismissed. against rejection of application seeking approval under Section 80G of the Act. There is a delay of 418 days in filing the appeal. The assessee has filed application dated 4th June, 2024 seeking condonation of delay in filing the appeal, supported by an affidavit. Explaining the reason of delay, assessee has submitted that it was due to the fact that Shri Brij Mohan Garg, trustee of the assessee-trust had inadvertently failed to comply to all notices and the assessee was also under a bona-fide belief that no appeal arises from the order passed by the competent authority under Section 12AB and under Section 80G of the Act. Thus, he submitted that the delay in filing the appeal, being bona-fide, may be condoned.
Learned DR did not oppose condonation of delay.
Having considered the submissions of the parties, we are satisfied that the delay in filing the appeal was due to reasonable cause. Accordingly, we condone the delay and admit the appeal for adjudication.
Before us, it is the say of the assessee that the application seeking approval under Section 80G of the Act was rejected purely for non- compliance. It is submitted, the trustee of the assessee-trust inadvertently failed to comply with the various notices issued by the competent authority. Thus, he submitted, assessee may be given an opportunity to appear before the competent authority to comply with all the queries and let the application seeking approval under Section 80G of the Act be decided on its own merits.
Learned DR did not express any objection against restoration of the issue to the file of learned CIT(Exemptions).
Having considered rival submissions, we find that application seeking approval under Section 80G of the Act was rejected purely for non- compliance of various queries. Therefore, we are inclined to set aside the impugned order of learned CIT(Exemptions) and restore the matter back to his file for de-novo adjudication after providing due and reasonable opportunity of being heard to the assessee. Assessee is also directed to comply with all the queries raised or to be raised by learned CIT(Exemptions). After considering the submissions of the assessee and documents furnished, learned CIT(Exemptions) may pass necessary order on the application of the assessee on its own merits. The appeal is allowed for statistical purposes. is dismissed and is allowed for statistical purposes.
Above decision was pronounced in the open Court on 9th September, 2024.