SHRI KUNPARA KADVA PATIDAR SAMAJ SEVA TRUST,SURENDRANAGAR vs. THE CIT(EXEMPTION), AHMEDABAD

The Assessee has filed the following grounds of appeal:

The assessee-trust was having provisional registration up to Assessment Year 2023-24 vide Form 10AC dated 27-05-2021. Later on, trust filed an application in Form 10AB on 30-90-2023 for registration under section 12A(1)(ac)(iii) of the Act. The Ld.CIT(E) issued several notices to the assessee trust regarding this application. However, the assessee failed to respond to these notices. Consequently, the Ld.CIT(E) rejected the application and cancelled the provisional registration earlier granted.

The assessee-trust also filed an application in Form 10AB for approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Act on 30.9.2023. The assessee-trust was also given provisional approval in form 10AC issued on 27.5.2021 for the period from 27-5-2021 to A.Y.2023-24. The Ld.CIT(E) issued show cause notice to assessee on 28.11.2023. The assessee failed to respond to the said notice.

The Ld.CIT(E) rejected the application stating that the application should have been made on or before 30-9-2022. He further stated that the application of the trust in form 10AB for granting registration u/s. 12A(1)(ac)(iii) of the Act is rejected on 19-2-2024, hence the assessee is not having valid order of registration and therefore the application for approval u/s 80G is not maintainable.

The assessee-trust has explained the delay of 17 days in filing the appeal before the Tribunal. It was submitted that the trust is located at very remote location and the trustees are not very conversant with the e-filing and portal related formalities. One of the trustees came to know about the rejection of some other and steps taken by them. Therefore, he contacted the CA and checked the status of their application filed online by the CA and found that their application for registration is rejected. Since they were not having e-mail address, they did not receive any email from the Ld.CIT(E). The trustee also filed an affidavit for condonation of delay.

The Ld.Departmental Representative did not object to the condonation of delay and stated that since the Ld.CIT(E) has not decided the matter on merits, it will be apt to refer the matter back to the file of the Ld.CIT(E).

We have heard the learned representatives of both parties and perused the material available on record. The primary issue for consideration is whether the delay in filing the appeal should be condoned and whether the matter should be remanded back to the Ld.CIT(E) for a fresh decision on merits. Considering the submissions and the circumstances detailed by the assessee-trust, we find that there exists sufficient cause for the delay in filing the appeal. The Hon'ble Supreme Court in the case of Collector, Land Acquisition v. Mst. Katiji & Ors. [(1987) 2 SCC 107] emphasized that a liberal approach should be adopted in condoning delays to advance substantial justice. Following this principle, we are inclined to condone the delay in filing the appeal.

On the merits of the case, it appears that the Ld.CIT(E) has not had the benefit of a full and comprehensive response from the assessee-trust due to the reasons mentioned. In the interest of justice and fair play, we deem it appropriate to set aside the order of the Ld.CIT(E) and remand the matter back to the file of the Ld.CIT(E) for a fresh adjudication. The assessee-trust is directed to adhere to the timelines set by the Ld.CIT(E) and to fully co- operate in the proceedings.

In view of the above, we hereby: i. Condone the delay in filing the appeal by the assessee-trust.

Accordingly, the appeal filed by the assessee-trust in ITA No.952/Ahd/2024 is treated as allowed for statistical purposes.

Upon considering the submissions and facts on record, we observe that the appeal of the assessee relating to the rejection of registration under Section 12A of the Act has been allowed us in ITA No.952/Ahd/2024, setting aside the order of the Ld.CIT(E). In view of this, the rejection of the application under Section 80G(5) of the Act by the Ld.CIT(E) also need to be reconsidered.

It is also pertinent to note that Circular No.7/2024 of the Central Board of Direct Taxes (CBDT) dated 25-04-2024 has extended the date of filing an application till 30-06-2024 even in case of the application under Section 80G of the Act.

Consequently, we set aside the order of the Ld.CIT(E) dated 07-03-2024 rejecting the application under Section 80G(5) of the Act and direct the Ld.CIT(E) to reconsider the application afresh in accordance with law and in light of the aforesaid CBDT Circular.

In conclusion, the appeal of the assessee-trust in ITA No.953/Ahd/2024 is allowed for statistical purposes, and the matter is remanded back to the Ld.CIT(E) for fresh adjudication of the application under Section 80G(5) of the Act.

In the combined result, both the appeals of the Assessee are treated as partly allowed for statistical purposes.

""यथ" / The Respondent. 3. संबं"धत आयकर आयु"त / Concerned CIT 4. आयकर आयु"त ( अपील ) / The CIT(E), Ahmedabad

"वभागीय ""त"न"ध , आयकर अपील"य अ"धकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाड" फाईल /Guard file.