RATNAWALI GAUSHALA ANAND DHAM,JAIPUR vs. CIT(E), JAIPUR

The appeal is delayed by 1187 days. The due date for filing the appeal expired on 09.07.2018. The assessee is a trust based in rural area and is maintained and run by various trustees who are rural residents. The assessee has filed condonation application along with an Affidavit requesting to condone the delay in filing the appeal on the ground that the delay was not willful. It also submitted that the trustees of assessee trust were not conversant in the field of taxation and also not aware of the remedy of appeal and they were also not advised by the tax consultant to file the appeal. Further, the ld. A/R for the assessee submitted that since the compilation of details as required took time, the assessee trust sought adjournments but the ld. CIT (E) without affording sufficient opportunity to the assessee trust, considering the delay in submitting the certain documents as required, passed the order under section 12AA(1)(b) of the IT Act on 10.07.2018 rejecting the application for registration under section 12AA of the Act. The ld. Counsel for the assessee placed reliance on the Judgment of Hon’ble Supreme Court in the case of Collector, Land Acquisition vs. Mst. Katiji (1987) 167 ITR 471 (SC) wherein it has been held as under :-

On the other hand, the ld. D/R has vehemently opposed the condonation of delay and submitted that there is an inordinate delay of 1187 days in filing the present appeal and the assessee has not explained a reasonable cause for such delay. The ld. D/R has contended that the reasons and cause of delay explained by the assessee cannot be considered as reasonable. He has supported the order of the ld. CIT (E).

We have considered the rival submissions as well as the relevant material on record. The assessee has explained the delay of 1187 days in filing the appeal is neither willful nor intentional. The assessee trust had sufficient cause. The trustees of assessee trust being not conversant in the field of taxation, were not aware of the remedy of appeal and were also not advised to file the appeal. Hence, the delay was on bonafide grounds. In the affidavit, the President of the assessee trust has explained that all the trustees of trust do not understand complex subject like Income Tax and thus not aware of the remedial action to be taken against such impugned order. We note that the ld. CIT (E) passed the impugned order rejecting the application of the assessee for registration on the ground that the assessee trust had neither appeared before him nor produced the required documents for verification. We further note that the ld. CIT (E) has dismissed the application of the assessee for want of any submission or other supporting evidence and, therefore, in the facts and circumstances of the case and in the interest of justice, we are of the considered view that though the assessee is guilty of negligence in not appearing before the ld. CIT (E) and further not filing the appeal within the period of limitation before the Tribunal, however, since the order of the ld. CIT (E) is passed ex parte, therefore, we condone the delay of 1187 days in filing the present appeal. Since the order passed by the ld. CIT (E) is ex parte and without considering any documentary evidence to be filed by the assessee, hence the matter is set aside to the record of the ld. CIT (E) for granting one more opportunity of hearing to the assessee and then decide the matter afresh after considering the arguments as well as the documentary evidence, if any, to be filed by the assessee. While reaching to the above conclusion, we have also taken into consideration that the ld. CIT (E) had already granted registration in these cases on 20.03.2021, 13.03.2021 and 13.03.2021 with effect from assessment year 2021-22.

In the result, all the appeals filed by the assessees are allowed for statistical purposes.

vihykFkhZ@The Appellant- Jagdamba Gaushala Sewa Samiti, Jaipur, Shri Narayan Dham Gaushala Sewa Samiti, Jaipur and Ratnawali Gaushala Anand Dham, Jaipur.