Daksh Prajapati Samiti vs CIT(Exemptions)

PER MANISH AGARWAL, AM :

The captioned appeals are filed by the assessee against the separate orders of ld. Commissioner of Income Tax (Exemption), Chandigarh [“Ld. CIT(E)”] dated 24.09.2024 rejecting the approval/registration sought u/s 12AB(1)(b)(ii) of the Income Tax Act, 1961 and further registration u/s 80B(5) of the Act (hereinafter referred as ‘the Act’).

It is observed that both appeals were filed delayed by 364 days. Before us, an application for condonation of delay was filed which was duly supported by an affidavit of Shri Suresh Kumar, President of appellant society. In the said petition, it is stated that the assessee was not aware about the service of the impugned order as the same was send on incorrect email ID than the mail id mentioned in Form 10AB. This has caused a significant delay in filing the appeals before the Tribunal. It is submitted that the delay was neither intentional nor deliberate and occurred due to the circumstances beyond control, therefore, it is requested to condone the delay.

Per contra, Ld. Sr. DR opposed to the request of the assessee for condonation of delay in filing the appeals.

Having considered the arguments of both the parties and material available on record. We find that there is a reasonable and sufficient cause with the assessee society in filing the appeals delayed by 364 days. It must be remembered that in every case of delay, there can be some lapses on the part of the litigant concerned however, that alone is not enough to turn down the plea of assessee and to shut the doors against them. When the explanation does not smack of mala fide or it is not put forth as a part of dilatory strategy, the Courts must give utmost consideration to such litigant and its right of hearing of appeal on merit ought not to be rejected. Considering the overall facts and circumstances of the case and in the larger interest of justice, delay in filling the appeals is hereby, condoned and appeals of the assessee are taken for adjudication on merits.

From the perusal of the order of ld. CIT(E), it is observed that the assessee has filed Form 10B for granting registration u/s 12AB(1)(ii)(b) of the Act which was denied as the assessee has failed to file all the details to establish the genuineness of the activities carried out by the assessee and thus, the Ld. CIT(E) was of the opinion that the assessee has failed to substantiate the genuineness of its activity. Similarly, the application filed for registration u/s 80G(5) of the Act was also dismissed for want of details.

Before us, the Ld. AR of the assessee submits that though the assessee was not able to file the details before the Ld. CIT(E), however, he requested that if one more opportunity is provided, assessee will file all the documentary evidences before the Ld. CIT(E) to establish the genuineness of the activities carried out by the assessee.

In reply, the Ld. Sr. DR vehemently supported the orders of Ld. CIT(E) and requested for the confirmation of the same.

Heard the parties and perused the material available on record. It is observed that Ld. CIT(E) has denied the registration u/s 12AB(1)(ii)(b) as the assessee has failed to file the requisite details in support of genuineness of the activities carried by it and the charitable objects coupled with the commencement of such activities etc. Since the requisite details were not filed, ld. CIT(E) was not in the position to verify the genuineness of charitable activities carried out by the assessee society.

Under these circumstances of the case and in the interest of natural justice, the matter is remanded back to the file of Ld. CIT(E) for fresh adjudication in accordance with law after providing reasonable opportunities to the assessee. The Assessee society is also directed to file all the requisite details before the Ld. CIT(E) in order to establish the genuineness of its activity. With these directions, both the captioned appeals of the assessee are allowed for statistical purposes.

In the result, both appeals of the assessee in ITA Nos.1040 & 1041/Del/2026 [Assessment Year 2023-24] are allowed for statistical purposes.