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Facts
The Stray Army Charitable Trust, engaged in animal welfare, appealed against the Ld. CIT(E)'s order dated 31.10.2023, which denied its registration under Section 12A and recognition under Section 80G of the Income Tax Act, 1961 for AY 2024-25. The assessee attributed its non-compliance with CIT(E) notices and the 400-day delay in filing appeals to ignorance of procedures and lack of proper counsel.
Held
The Tribunal condoned the delay in filing the appeals, acknowledging the assessee's genuine cause of ignorance. Consequently, the issues pertaining to Section 12A exemption and Section 80G recognition were restored to the file of the Ld. CIT(E) for fresh re-adjudication, with directions to provide the assessee adequate opportunity of being heard.
Key Issues
Denial of registration under Section 12A and recognition under Section 80G due to the assessee's non-compliance with notices and subsequent delay in filing appeals before the Tribunal.
Sections Cited
Section 12A of the Income Tax Act, 1961, Section 80G of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, RANCHI BENCH
Before: SHRI GEORGE MATHAN & SHRI RATNESH NANDAN SAHAY
Present for: Appellant by : Shri Manish Kr. Agarwal, AR Respondent by : Shri Sanjay Kumar, CIT, DR Date of Hearing : 22.04.2025 Date of Pronouncement : 22.04.2025 O R D E R Per Bench: Both the captioned appeals filed by the assessee against the orders of the Ld. Commissioner of Income Tax (Exemption), Patna [hereinafter referred to as “the Ld. CIT(E)”] dated 31.10.2023 denying the assessee the benefit of registration u/s. 12A and recognition u/s. 80G of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2024-25.
Shri Manish Kr. Agarwal, AR appeared on behalf of the assessee and Shri Sanjay Kumar, CIT, DR appeared on behalf of the revenue.
It was submitted by the Ld. AR that this is a trust which is engaged in taking care of providing food, treatment and medical care to stray animals in the area of Jamshedpur. It was the submission that this trust has been started in 2022 by 3 (three) youngsters. It was a submission that as they were unaware of the procedures and they did not have proper counsel, they failed to respond to the notice issued by the Ld. CIT(E). It was a submission that even the appeal before the Tribunal is delayed by 400 days on account of ignorance. It was a prayer that the issue of exemption u/s. 12A and recognition u/s. 80G may be restored to the file of the Ld. CIT(E) and that the assessee would comply with the notices issued by the Ld. CIT(E).
In reply, the Ld. CIT, DR submitted that he had no objection to the restoration of the issue to the file of Ld. CIT(E) for fresh adjudication.
We have considered the rival submissions. The delay in filing both these appeals before this Tribunal is condoned as there is reasonable cause shown by the assessee. As it is noticed that the assessee has failed to represent itself before the Ld. CIT(E) on account of ignorance, the issues in both the appeals of the assessee are restored to the file of the Ld. CIT(E) for re-adjudication after granting the assessee adequate opportunity of being heard.
In the result, both the appeals of the assessee are partly allowed for statistical purposes.
Order dictated and pronounced in the open court.