SHREE DIGAMBER JAIN DASHA NAGDA SAMAJ TRUST,MUMBAI vs. CIT(EXEMPTIONS), MUMBAI

It is observed that the present appeal has been filed with a delay of 426 days for which the assessee trust had filed an affidavit along with an application for condoning the said delay. Upon perusal of the same, we deem it fit to hold that the assessee had “sufficient cause” for the said delay and therefore we are inclined to condone the delay caused by the assessee in filing the present appeal. Delay condoned.

Aggrieved the assessee trust is in appeal before us, challenging the impugned order of the Ld. CIT(E).

We have heard the rival submissions and perused the materials available on record. It is observed that the Ld. CIT(E) in the impugned order has specified that the assessee has no activity as per the submission dated 21.01.2023 and has thereby not fulfilled the conditions prescribed for filing application for registration in form 10AB with the liberty given to the assessee to reapply in form 10AB alongwith all necessary documents as prescribed in the IT Rules on commencement of the activities of the assessee trust.

The Ld. AR contented that for the purpose of registration u/s. 12AB, the assessee ought to have filed an application in the prescribed form at least 6 months prior to the expiry of the provisional registration or within 6 months of the commencement of activities whichever is earlier which is in accordance with Section 12A(1)(ac)(iii) of the Act. In the present case, the assessee was granted Provisional Registration on

The Ld. AR further stated that the assessee was taking all efforts for the commencement of its charitable activities which was in a preparatory phase at the time of application. The Ld. AR relied on various decisions of the Coordinate Benches in support of his contentions. The Ld. DR on the other hand controverted the said fact and relied on the order of the Ld. CIT(E).

We have heard the rival submissions and perused the material available on record. The Ld. AR for the assessee submitted that the assessee trust’s charitable activities have already been commenced and that the assessee was unable to submit the relevant documentary evidence for the same before the Ld. CIT(E) due to technical glitches.

The Ld. AR prayed that the assessee may be given one more opportunity to file all the relevant documentary evidence pertinent to the charitable activities that has been carried out by the assessee to the Ld. CIT(E).

On the factual matrix of the case, we deem it fit to extend the assessee with another opportunity to present all the relevant documentary evidence as along with form 10AB for registration of the assessee trust as per Section 12AB of the Act. The assessee is directed to furnish the said documentary evidence before the Ld. CIT(E), without any undue delay and the Ld. CIT(E) is also directed to decide this issue on the merits of the case and in accordance with law.