KHACHROD IMPERIAL PUBLIC SCHOOL SANCHALAK SAMITEE,KHACHROD UJJAIN vs. CIT EXEMPTION , BHOPAL

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).

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.

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:

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.