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Facts
The assessee, Educate All Charitable Trust, appealed the CIT(E)'s rejection of its application for registration under Section 12A(1)(ac)(iii). The appeal was filed 359 days late, for which the assessee sought condonation of delay, citing the trustee's preoccupation with his infant daughter's severe medical condition, which prevented timely responses to notices and appeal filing.
Held
The Tribunal condoned the 359-day delay, finding it unintentional and caused by a medical emergency, as evidenced by medical documents. Consequently, the matter was remanded back to the CIT(E) for fresh consideration of the registration application, with a direction for the assessee to submit all requested documentary evidence and cooperate fully.
Key Issues
1. Condonation of significant delay in filing an appeal to the ITAT due to medical emergency. 2. Legality of rejecting an application for trust registration under Section 12A(1)(ac)(iii) when non-compliance with notices was due to unforeseen medical circumstances.
Sections Cited
12A(1)(ac)(iii), 12AB
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
This appeal is filed by the assessee against the order of ld. CIT (E), Chandigarh dated 02.01.2024 rejecting the application for registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961. belatedly by 359 days. The assessee has filed an application for condonaiton of delay along with an affidavit sworn by Mr. Nayeem Shafi, the trustee of the assessee along with medical certificates in the name of his minor daughter baby Maryam Fatima, stating the fact that his infant daughter was seriously ill during the period of July, 2023 and was under continuous treatment till the month of October, 2024 in support of which medical certificates has been submitted covering the entire period (including OPD card issued by Sher-e-Kashmir Institute of Medical Science, Srinagar).
It is explained that the order of the ld. CIT(E) has been received on 2nd 3. January, 2024 and this appeal before the Tribunal has been filed on 26th Feb., 2025 delayed by 359 days. Referring to the medical certificate, the ld. AR of the assessee submitted that the trustee was fully pre-occupied with medical treatment of his infant daughter who was diagnosed with Pelvi-Ureteric Junction (PUJ) (obstruction of the left kidney) which required emergency medical attention and as such medical treatment continued till December, 2024. Thereafter, the trustee managed to contact his lawyer and has filed this appeal belated by 359 days.
The ld. AR submitted that since there was no willful default on the part of the assessee, the delay in filing of the appeal was not intentional and as such on account admitted to be heard on merits.
The ld. DR has no objection. Considering the medical issues as stated by the ld. AR of the assessee which are supported by medical documents, we are of the opinion that the delay in filing the appeal was not intentional and as such, we condone the delay and admit the appeal to be heard on merits.
The assessee has taken four grounds of appeal in Form No. 36 which actually relates to the rejection of the registration of the trusts by the ld. CIT(E) for non- submission of documentary evidences and for not responding to various notices issued in the course of registration process.
The ld. AR of the assessee submitted that the assessee trust has been granted provisional registration u/s 12AB vide order dated 01.12.2022 which was valid for assessment years 2023-24 to 2025-26 and the assessee trust filed for regular registration u/s 12AB in Form 10AB on 27.09.2023. However, in order to verify the genuineness of the activities and the objections of the trust, the ld. CIT(E) called for various particulars and documentary evidences vide notices dated 15.10.2023, 29.11.2023 and finally on 14.12.2023, and in absence of any response from the assessee, and without supporting documentary evidences, the application for registration has been rejected vide order dated 02.01.2024. The ld. AR further occupied with the treatment of his infant daughter which are all evidenced by medical certificates, and no response could be filed to the notice issued by the ld. CIT(E), resulting in the rejection.
As such, the ld. AR prayed that afresh opportunity of hearing may please be allowed considering the unusual circumstance which arised because of medical emergency.
The ld. DR relied on the order of the ld. CIT(E) but after going through the medical documents, he has no objection if the matter is remanded back for fresh consideration.
We have heard the rival submissions and considered the materials on record and we find that the opportunity duly allowed by the ld. CIT(E) could not be availed by the assessee for which he was prevented by medical emergency. We are also of the opinion that in this case, there is no willful default or intentional neglect on the part of the trustee and as such, we are of the view that justice will be served if the matter is remanded back to the ld. CIT(E), Chandigarh for consideration of the registration application afresh and we also direct the assessee to file all documentary evidences as requested vide notices issued from the office of the ld. CIT(E), and to fully cooperate in the registration proceedings. above directions.
The assessee may be allowed proper opportunity of being heard and to file all necessary documents in support of the application for registration.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 31.07.2025.