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Facts
The assessee's appeal was time-barred by 869 days. The assessee contended that the ex-parte order rejecting their application for registration u/s 12A was due to their non-compliance, which was caused by the COVID-19 pandemic and a change in their committee. The CIT(E) had rejected the application due to the assessee's non-compliance.
Held
The Tribunal condoned the delay in filing the appeal, finding that the assessee had sufficient cause for the delay. The Tribunal decided to remand the issue back to the CIT(E) to consider the assessee's application on its merits, allowing the assessee another opportunity to present all details and evidence.
Key Issues
Whether the delay in filing the appeal can be condoned and whether the assessee should be given another opportunity to present their case before the CIT(E) for registration under section 12A.
Sections Cited
12AA(1)(b)(ii), 12A
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Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
O R D E R Per Kavitha Rajagopal, J M: This appeal has been filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Exemptions), Mumbai (‘ld.CIT(E) for short), passed u/s.12AA(1)(b)(ii) of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2021-22.
It is observed that the present appeal is time barred by 869 days for which the assessee has filed an Affidavit for condoning the said delay.
The learned Authorised Representative ('ld. AR' for short) for the assessee submitted that the ex parte order of the ld. CIT(E) rejecting the application u/s. 12A dated 03.02.2021 was not within the knowledge of the assessee trust owning to the 2nd wave of Covid Pandemic where none of the staff of the assessee trust had attended the office. The ld. AR further stated that as there was change in committee during the month of September, 2022, the new committee had no knowledge of the order of the ld. CIT(E). It certificate of registration. The ld. AR prayed that the delay in filing the appeal may be condoned, as there was reasonable cause for the said delay.
The learned Departmental Representative ('ld.DR' for short) vehemently opposed to the condoning of the delay. After duly considering the rival contentions, we deem it fit to condone the delay in filing the present appeal on the ground that the assessee had sufficient cause for the delay in filing the present appeal. Delay condoned.
The assessee has in this appeal challenged the order of the ld. CIT(E) in rejecting the application u/s. 12AA of the Act vide an ex parte order dated 03.02.2021. The brief facts are that the assessee trust which has been registered as ‘Charitable Trust’ under the Public Charitable Act, 1950 has been carrying on charitable activities since inception and is also registered u/s.12A of the Act from 2008 and has been filing returns regularly. It is observed that the assessee has e-filed an application for registration u/s. 12A of the Act under the prescribed Form No. 10A dated 16.10.2020 before the ld. CIT(E). The ld. CIT(E) had sought for various details/documents like certified copy of trust deed, proof of identity of main trustee, PAN cards of trust and its trustees and settler, copy of bank account(s), NOC in respect of its office premises, certificate of registration of trust issued by the Charity Commissioner, copies of audited accounts and note on activities undertaken, details of donation received and made, etc. for substantiating the genuineness of the activities of the Trust. It is further observed that the assessee has been non compliant before the ld. CIT(E) and the ld. CIT(E) vide order dated 03.02.2021 passed an order rejecting the registration u/s. 12A of the Act.
We have heard the rival submissions and perused the materials available on record. The ld. AR for the assessee had contended that the assessee has been non compliant before the ld. CIT(E) owning to the reason of the nation-wide lock down during the first wave of Covid Pandemic. The ld. AR further contended that the email sent by the ld. CIT(E) was also not assessable to the Trustee who was in area where there was no access to the internet. The ld. AR stated that the assessee trust is into genuine charitable activities and prayed that the assessee may be given one more opportunity to furnish the required details before the ld. CIT(E). The learned Departmental Representative ('ld.DR' for short) had nothing to controvert on the said facts.
On perusal of rival contentions, we are of the considered opinion that the assessee may be given one more opportunity to present all the details sought for before the ld. CIT(E). We, therefore, remand this issue back to the file of the ld. CIT(E) for considering the assessee’s application u/s. 12A of the Act based on the merits of the assessee’s submission along with the requisite documentary evidences. The assessee is also directed to co-operate with the proceeding before the ld. CIT(E).
In the result, the appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in the open court on 27.02.2024.