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Facts
The assessee filed applications for registration under Section 12AB and 80G(5) which were rejected by the CIT(E). The assessee faced delays in filing appeals due to technical issues and unfamiliarity with the ITBA portal. The delay was argued to be unintentional.
Held
The Tribunal condoned the delay in filing the appeals, finding it to be neither intentional nor malafide. The Tribunal restored the application under Section 12AB to the CIT(E) for reconsideration, as the initial rejection was based on a minor inadvertent error in selecting the sub-clause. The appeal under Section 80G(5) was also restored as it was consequential.
Key Issues
Whether the delay in filing the appeals is liable for condonation, and whether the rejection of the application under Section 12AB due to an inadvertent error in selecting a sub-clause was justified.
Sections Cited
12AB, 80G(5), 254(1)
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PER PAWAN SINGH, JUDICIAL MEMBER:
These two appeals by assessee are directed against the separate orders of ld. CIT(E) both dated 26.07.2024. In the assessee has filed appeal against rejection of application under section 12AB. In the assessee has challenged the rejection of application under section 80G(5). Both the appeals are interconnected, therefore, clubbed, heard together and are decided by common order.
Rival submissions of both the parties have been heard and record perused. The learned Authorized Representative (ld. AR) of the assessee fairly submits that there is delay of 262 days in and 123 days in ITA No. 279/Nag/2025. She has filed separate application for condonation of delay in both the appeals. The delay is neither intentional or deliberate. The trust is working in remote area of District Gadchirauli. The Young Engineers Education Society & ITA 279/Pun/2025 trustee of the assessee trust are not well versed with the use of ITBA portal and could not realize the dismissal of their application and further took time in collecting papers from the person who were pursuing the registration process. The assessee has good case on merit and is likely to succeed if the case is considered on merit. The delay may kindly be allowed in both the appeals.
On merits the ld AR of the assessee submits that submits that due to inadvertence, the assessee while filing application for registration under section 12AB, the assessee selected inappropriate sub-clause (vi) of clause (ac) of sub–section (1) of section 12A, instead of sub–clause (iii) of clause (ac) of section 12A(1). The request of assessee to change the sub–clause was not accepted by ld. CIT(E) and application of assessee for registration under section 12AB was rejected in mechanical manner. The ld. AR of the assessee submits that assessee fulfilled all the requisite conditions for seeking registration under section 12AB and furnished all such required evidence before the ld. CIT(E). The assessee is still ready and willing to fulfil to submit all such required information. The matter may be restored back to the file of ld. CIT(E) with the direction to consider the application of assessee under sub–clause (iii) of clause (ac) of section 12A(1).
In support of grounds of appeal
in respect of appeal in the assessee submits that once the application of assessee under section 12AB was rejected, the application under section 80G(5) was also rejected. Thus, both the appeals may be restored back to the file of ld. CIT(E).
5. On the other hand, learned Commissioner of Income Tax – Departmental Representative (CIT–DR) for the revenue supported the order of ld. CIT(E) and submits that ld. CIT(A)
Young Engineers Education Society & ITA 279/Pun/2025 has not power to change the nature of application. The ld CIT-DR for the revenue opposed the plea of assessee for condonation of delay.
We have considered the rival submissions of both the parties and perused the record. Firstly, we are considering the plea of ld AR of the assessee in seeking condonation of delay. Before us, the ld AR of the assessee vehemently urged that trust is working in remote area of District Gadchirauli. The trustee of the assessee trust is not well versed with the use of ITBA portal and could not realize the dismissal of their application and further took time in collecting papers from the person who were pursuing the registration process. Considering the plea of ld AR of the assessee, we find that delay in filing both the appeals are not intentional or malafide. Hence, delay in filing both the appeals are condoned. Now adverting to the merits of the case.
We find that very minor dispute is involved in appeal of ITA No. 404/Nag/2025. We find that assessee, while filing application for registration of assessee-trust under section 12AB, due to inadvertence selected sub–clause (vi) of clause (ac) of section 12A(1) instead of section 12A(1)(ac)(iii). Such mistake was not fatal. Thus, application of assessee is restored to the file of ld. CIT(E) to consider it afresh under section 12A(1)(ac)(iii) and pass order in accordance. Needless to direct that before passing the order, the ld. CIT(E) shall allow reasonable opportunity to the assessee. The assessee is also directed to provide complete details to the office of ld. CIT(E) to prove the object and activities and other condition as applicable for seeking registration under section 12AB.
Young Engineers Education Society & ITA 279/Pun/2025 8. Considering the fact that we have restored the appeal in to the file of ld. CIT(E), therefore, appeal in wherein the grounds of appeal are consequential, is also restored to the file of ld. CIT(E) to reconsider it after passing the order in application for registration under section 12AB.
9. In the result, both the appeals of assessee are allowed for statistical purpose. Order announced in open court on 24th February 2026 at the time of hearing.
Sd/– Sd/– KHETTRA MOHAN ROY PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER Nagpur: Dated: 24/02/2026 Biswajit