THE STRAY ARMY CHARITABLE TRUST,JAMSHEDPUR vs. ITO(E), EXEMPTION WARD JAMSHEDPUR / CIT(E) PATNA, JAMSHEDPUR

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ITA 53/RAN/2025Status: DisposedITAT Ranchi22 April 2025AY 2024-253 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal condoned the delay in filing both appeals, finding reasonable cause shown by the assessee. The Tribunal noted that the assessee's failure to represent itself before the Ld. CIT(E) was on account of ignorance. Consequently, the issues raised in both appeals were restored to the file of the Ld. CIT(E) for re-adjudication. The Ld. CIT(E) was directed to grant the assessee an adequate opportunity of being heard. The Tribunal did not decide the merits of the denial of registration u/s. 12A and recognition u/s. 80G, as the matter was remanded for fresh consideration. The ratio decidendi is that procedural lapses due to genuine ignorance, if explained with reasonable cause, can lead to condonation of delay and restoration of issues for proper adjudication, provided the assessee assures future compliance and is granted a fair hearing.

What were the facts?

The assessee, The Stray Army Charitable Trust, filed two appeals (ITA Nos. 53 & 54/RAN/2025) before the Income Tax Appellate Tribunal (ITAT), Ranchi Bench, for Assessment Year 2024-25. The appeals challenged orders dated 31.10.2023 passed by the Commissioner of Income Tax (Exemption), Patna (Ld. CIT(E)). These orders denied the trust registration under Section 12A and recognition under Section 80G of the Income Tax Act, 1961. The assessee's representative stated that the trust, established in 2022 to care for stray animals, failed to respond to notices from the Ld. CIT(E) due to ignorance and lack of proper counsel. The appeals before the Tribunal were also delayed by approximately 400 days for the same reason. The assessee prayed for the issues to be restored to the Ld. CIT(E)'s file for fresh adjudication, assuring compliance with future notices.

What were the issues?

1. Whether the appeals filed before the Tribunal are to be admitted despite a delay of approximately 400 days, and if so, whether the issues of denial of registration u/s. 12A and recognition u/s. 80G should be restored to the file of the Ld. CIT(E) for fresh adjudication. Assessee's Contentions: The assessee argued that the delay in filing the appeals before the Tribunal was due to ignorance and lack of proper counsel, as the trust was started by young individuals unaware of procedural requirements. They requested that the matter be remanded to the Ld. CIT(E) for re-adjudication, with an assurance of future compliance with notices. Revenue's Contentions: The revenue, represented by the Ld. CIT, DR, had no objection to the restoration of the issues to the file of the Ld. CIT(E) for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 12A,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH

Before: SHRI GEORGE MATHAN & SHRI RATNESH NANDAN SAHAY

For Appellant: Shri Manish Kr. Agarwal, AR
For Respondent: Shri Sanjay Kumar, CIT, DR
Pronounced: 22.04.2025

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.

2.

Shri Manish Kr. Agarwal, AR appeared on behalf of the assessee and Shri Sanjay Kumar, CIT, DR appeared on behalf of the revenue.

3.

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).

4.

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.

5.

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.

6.

In the result, both the appeals of the assessee are partly allowed for statistical purposes.

Order dictated and pronounced in the open court.

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