WE CARE,PUDUCHERRY vs. ITO, EXEMPTIONS WARD 1, CHENNAI

आदेश / O R D E R PER ABY T. VARKEY, JM: These are appeals preferred by the assessee against the order of

the Learned Commissioner of Income Tax (Exemptions), (hereinafter in

short "the Ld.CIT(E)”), Chennai, dated 08.09.2023 rejecting the

application dated 22.03.2023 in Form 10AB u/s.12A(1)(ac)(iii) of the

Income Tax Act, 1961 (hereinafter in short "the Act”) for registration

u/s.12AB of the Act as well as application filed under clause (iii) of first

ITA Nos.1595 & 1596/Chny/2024 (AY 2024-25) WE CARE :: 2 ::

proviso to sec.80G(5) of the Act, denying the approval u/s.80G of the

Act.

of these appeals; and the assessee Trust has filed Affidavit, explaining the

delay and also requested to condone the delay. The cause of the delay,

we note was because assessee Trust wasn’t aware about rejection orders

passed by the Ld.CIT(E) due to change in its address; and once they

came to know about the impugned decision of the Ld.CIT(E), appeals

were filed in ITAT on 25.05.2024. After perusal of the contents of the

Affidavit, we find that delay caused in filing the appeals can’t be termed

as deliberate/negligent. And it is common knowledge that no assessee

derives any benefit by not filing the appeal. Therefore, for the ends of

justice and fair play, we condone the delay and proceed to hear the

appeals on merits.

u/s.12A of the Act vide order dated 21.06.2006 and after the new regime

came into force, the assessee inadvertently obtained provisional

registration u/s.12A of the Act from 28.02.2023 to AY 2025-26 vide order

dated 28.02.2023. Likewise, assessee had obtained earlier approval

u/s.80(5)(vi) dated 21.06.2006; and after the new regime came into

force, the assessee inadvertently obtained provisional approval

ITA Nos.1595 & 1596/Chny/2024 (AY 2024-25) WE CARE :: 3 ::

u/s.80G(iv) of the Act from 28.02.2022 to AY 2025-26 vide order dated

28.02.2023 and in order to obtain the regular registration/approval

u/s.12AB/80G of the Act, the assessee filed the applications before the

Ld.CIT(E), which has been dismissed ex-parte for non-compliance on the

part of the assessee. It is brought to our notice that notices were issued

by Ld CIT(E) to the earlier address at Vellore, whereas, the assessee’s

new address is at Pondicherry. Therefore, the Ld.CIT(E) passed the ex

parte order qua assessee rejecting both registration u/s.12AB/80G of the

Act. We note that the assessee couldn’t comply with the directions given

by the Ld.CIT(E), because, no notices could be served upon it due to

change of address. Therefore, there exist reasonable cause for non-

compliance to the directions of the Ld.CIT(E). Therefore, for the ends of

justice and fair play, we set aside impugned order of the Ld.CIT(E) and

restore the applications back to the file of the Ld.CIT(E) for deciding the

application on merits in accordance to law after hearing the assessee and

after considering our discussion/direction at para 4 infra.

registration u/s.12A as well as approval u/s.80G of the Act (from AY

2007-08 onwards). It is engaged in charitable activities which paved way

for them to be granted such registration by the competent authorities. Be

that as it may, after the amendment/new regime w.e.f. 01.04.2021, we

note that assessee being an old Trust, ought to have filed its application

ITA Nos.1595 & 1596/Chny/2024 (AY 2024-25) WE CARE :: 4 ::

for registration u/s.12A(1)(ac)(i) which would have facilitated automatic

registration for five years from AY 2022-23 onwards (taking note that

assessee filed for registration in February, 2023 which is well within the

extended time given by CBDT). However, it is noted that assessee has

inadvertently applied as if it is a new Trust u/s.12A(1)(ac)(vi) rather than

under sub-clause (i) of sec.12A(1)(ac) of the Act (which was meant for

old Trust like assessee). In such factual back ground, the Ld.CIT(E) while

processing this application of assessee (in this case, assessee has applied

for regular registration u/s.12A(1)(ac)(iii) meant for new Trust), ought to

appreciate that assessee Trust was an old Trust and if it correctly applied

u/s.12A(1)(ac)(i) of the Act, could have automatically got registration for

five years and should have been granted such registration from AY 2022-

23 onwards, because, provisional registration is only granted from AY

2023-24 onwards, which may result in assessee being denied benefit

u/s.11 of the Act for AY 2022-23. Considering the aforesaid facts, the

assessee’s application may be considered by Ld CIT(E) for grant of

registration u/s.12Ab for five years form AY 2022-23 onwards, and if

advised, assessee to file hard copy of relevant applications for grant of

registration u/s 12AB as well as for approval u/s.80G of the Act also. And

the Ld.CIT(E) to call for relevant documents to ascertain the aforesaid

facts and consider granting registration for five years from AY 2022-23

onwards, ignoring the inadvertent mistake in filing under wrong sub-

ITA Nos.1595 & 1596/Chny/2024 (AY 2024-25) WE CARE :: 5 :: clause of section 12A(1)(ac) or under first proviso to section 80G of the Act.

Order pronounced on the 30th day of August, 2024, in Chennai.

Sd/- Sd/- (अिमताभ शु�ा) (एबी टी. वक�) (AMITABH SHUKLA) (ABY T. VARKEY) लेखा सद�य/ACCOUNTANT MEMBER �याियक सद�य/JUDICIAL MEMBER चे�ई/Chennai, �दनांक/Dated: 30th August, 2024. TLN, Sr.PS आदेश क� �ितिलिप अ�ेिषत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF