SACHO SATRAM TIRA THDHAM TRUST,NAGPUR vs. COMMISSIONER OF INCOME TAD, (EXEMPTION), PUNE

This appeal filed by the assessee is made against the order passed by the CIT(Exemption), Pune, dated 24.09.2020, for the assessment year 2020-2021.

It is respectfully submitted that Hon'ble Supreme Court in Miscellaneous Application No.21 of 2022, Miscellaneous Application No.665 of 2021 and in Suo Motto Writ Petition(C) No.3 of 2020 "In Re-Cognizance for extension of limitation" has held that in case where the limitation would have expired during the period between 15/03/2020 till 28/02/2022 notwithstanding the actual balance period of limitation remaining all persons shall have a limitation period of 90 days from 01/03/2022. The copy of judgement is enclosed. In the case of assessee statutory limitation for filing of appeal expired on 23/11/2020. In terms of decision of Hon'ble Apex Court assessee can file an appeal upto 29/05/2022. The assessee has filed an appeal on 05/04/2022. On above facts and in the light of judgement of Hon'ble Apex Court there is no delay in filing an appeal. In any case it is humbly submitted that appeal be held to have been validly filed within limitation, alternatively delay of 498 days be condoned considering covid pandemic. Thus, the ld. AR submitted that the delay in filing the present appeal neither intentional nor deliberate but due to unfortunate and unavoidable circumstances beyond the control of the assessee, which may kindly be condoned.

On the other hand, ld. CIT-DR also accepted to the contention of the ld. AR of the assessee. 4. Considering the rival contentions of both the parties and respectfully following the judgment of the Hon’ble Supreme Court, cited supra, we condone the delay of 498 days in filing the present appeal by the assessee and the appeal is admitted for hearing. 5. The sole issue involved in this appeal is that the CIT(E) erred in rejecting the application of the assessee for grant of registration u/s.12AA of the Act. 6. Ld. AR before us submitted that the CIT (Exemption) in his order dated 24/09/2020 has rejected the application for registration in view of no 3 compliance made by assessee trust to notices referred to at para 3 of order. It was also submitted that CIT(E) in his order has not adjudicated on merits of eligibility of trust to be registered u/s 12A of I. T. Act 1961. Non-compliances of notices issued during covid pandemic was for same having not received physically and on account of covid pandemic there was no attendance in office of trust. Trust has been granted Registration u/s 12A(1 )(ac)(vi) by an order dated 24/09/2021 and it is valid for Asstt. Year 2022-23 to 2024-25. (P- 1 to 3). Registration u/s 12A(1 )(ac)(vi) has been granted on the basis of documents submitted along with application submitted on 31/08/2021. In the case of assessee Registration u/s 12A(1)(ac)(vi) is granted on same set of documents as were submitted on 02/03/2020. It was also submitted by the ld. AR of the assessee that provisions of sec. 12A(2) 2nd proviso provides to give benefit of sec. 11 & 12 to Charitable Institution for earlier years if objects remain same. In the case of assessee trust objects are same at the time of original application on 02/03/2020 and 2nd application on 31/08/2021. Benefit extended by 2nd proviso to sec. 12A(2) is getting denied for refusal 1 of registration on technicalities in view of 4th proviso to sec. 12A(2) of IT. Act 1961. Assessee has submitted regular returns up to Asstt. Year 2021-222 before due date along with Audited Financial Statement. On similar documents/facts and evidence on record registration having been granted, therefore, the ld. AR submitted that Registration be granted pursuance to application filed on 02/03/2020 in the interest of justice and considering provisions of sec. 12(A(2) 2nd proviso.

On the other hand, ld. CIT-DR relied on the order of the CIT(E).

We have considered the rival contentions and perused the record carefully. We found that the application for registration u/s.12AA of the Act of the assessee has been rejected by the CIT(E) on account of non- compliance of the assessee trust to the notices issued by him. On being asked to the ld. AR during the course of hearing as to why the assessee did not comply to the notices issued by the CIT(E), it was stated that due to covid pandemic no attendance was in the office of the assessee trust to pursue the matter before the CIT(E) resulting into rejection of the application for registration u/s.12AA of the Act. It is stated that the assessee trust has been granted registration by the CIT(E) for assessment year 2022-2023 to 2024-2025. The assessment year under consideration is A.Y.2020-2021 and for this year under consideration the registration has been denied on account of non-compliance. On careful consideration of the submission of the assessee, we found that the assessee was prevented to represent its case before the CIT(E) due to Covid-19 pandemic. Therefore, in the interest of justice, we restore the issue to the file of CIT(E) to pass a speaking and reasoned order after considering the application of the assessee for registration u/s.12AA of the Act. Needless to say, the assessee shall be provided sufficient opportunity of hearing. The assessee is also directed to cooperate with the CIT(E) for early disposal of the case.