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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
आदेश / O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order dated 13.09.2023 passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] by which the assessee’s application in Form No. 10AB for grant of registration u/s 12AB of Income-tax Act, 1961 has been rejected, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).
Khachrod Imperial Public School Sanchalak Samitee, Khachrod, Ujjain
The registry has informed that the there is a delay of 22 days in filing this appeal, therefore the appeal is time-barred. Ld. AR for assessee submitted that the assessee has filed an application for condonation of delay supported by an affidavit of Shri Sanjay Kumar Hingad, Treasurer of assessee-society on stamp. Drawing our attention to the averments made therein, Ld. AR submitted that the assessee is located in a remote place and not aware of newer systems adopted by Income-tax Department i.e. online delivery of notices through e-mail ID. Therefore, the assessee did not check e-mail account regularly and found the impugned order lately. Therefore, the assessee could not file this appeal within 60 days but otherwise there is no deliberate lethargy, negligence, mala fide intention or ulterior motive of assessee in making delay and the assessee does not stand to derive any benefit because of delay. Ld. AR submitted that the assessee-society is engaged in charitable object of imparting education and a liberal approach be taken and delay be condoned to meet the end of justice. Ld. DR for Revenue was fair enough in not raising any objection against assessee’s prayer and left the matter to the wisdom of Bench. We have considered the explanation advanced by assessee and in absence of any contrary fact or material on record, the assessee is found to have a ‘sufficient cause’ for delay in filing present appeals. We find that section 253(5) of the Act empowers the ITAT to admit an appeal after expiry of prescribed time, if there is a sufficient cause for not presenting appeal within prescribed time.
It is also a settled position by Hon’ble Supreme Court in Collector, Land
Khachrod Imperial Public School Sanchalak Samitee, Khachrod, Ujjain Acquisition Vs Mst. Katiji and others 1987 AIR 1353, 1987 2 SCC 387 that whenever substantial justice and technical considerations are opposed to each other, the cause of substantial justice must be preferred by adopting a justice-oriented approach. Thus, taking guidance from decision of Hon’ble Supreme Court, we take a judicious view, condone delay, admit appeal and proceed with hearing.
Ld. AR carried us to the impugned order to demonstrate the reason assigned by CIT(E) for rejecting assessee’s application; the same reads as under:
“Vide above referred letters various documents/information were called for. After various notices, the assessee has submitted incomplete reply with some documents. Subsequently notice was issued on 25.08.2023 to submit the various information/documents for processing of application. In response to notice dated 25.08.2023, no reply has been received from the assessee. Further, notice was issued on 05.09.2023 with final opportunity; the assessee has submitted same reply again but not provided the information/documents as per the notice i.e. complete reply of notice dated 06.06.2023, building rents details, salary details, details of governing body, etc. In view of the abovementioned grounds and non-compliances, the application of the assessee in Form 10AB for grant of registration u/s 12AB of the Act is hereby rejected.” [Emphasis supplied] 4. Thus, the CIT(E) has rejected assessee’s application for non- submission of certain details. Ld. AR submitted that the assessee has collected/compiled all details and is ready to submit the same and for this reason, the assessee has filed an application under Rule 29 of Income-tax (Appellate Tribunal) Rules, 1963 for admission of documents as additional evidences and also those documents are filed at S.No. 7, 8, 19 and 20 in the Khachrod Imperial Public School Sanchalak Samitee, Khachrod, Ujjain Index of Paper-Book. The Index of Paper-Book is scanned and re-produced below:
Khachrod Imperial Public School Sanchalak Samitee, Khachrod, Ujjain
Khachrod Imperial Public School Sanchalak Samitee, Khachrod, Ujjain
Ld. AR submitted that the assessee is a charitable institution engaged in imparting charitable purpose of education and its entitlement to exemption u/s 11/12 depends upon grant of registration u/s 12AB of the act. Therefore, an opportunity be given to assessee to submit these evidences to CIT(A) so that the assessee’s application for registration can be dealt on merit in accordance with law. Ld. DR for revenue did not have any objection if this case is remanded back to CIT(E). We agree to the submissions of parties and remit this matter back to the file of CIT(E) for adjudication afresh after giving necessary opportunities to assessee and considering assessee’s submission.
Resultantly, this appeal of assessee is allowed for statistical purposes.
Order pronounced in open court on 30.04.2024.