Shaagird Foundation vs CIT (Exemption)

These two appeals by the assessee are directed against the order of the Ld. Commissioner of Income Tax(Exemption), New Delhi [hereinafter referred to as 'Id. CIT(E)] both dated 21.08.2024 passed under section 12AB/(1)(b)(ii) and 80G of the Income Tax Act, 1961. The word 'Act' herein this order would mean Income Tax Act, 1961.

The assessee was called absent.

The appeal of the assessee vide ITA No.4559/Del/2026 is regarding the rejection of its request filed under section 80G(5)(ii) of the Act. The appeal of the assessee vide ITA No.4558/Del/2026 is regarding the rejection of its request filed under section 12AB(I)(b)(ii) of the Act. As both the appeals are of the same assessee concerning common issues of rejection of its application under section 12A and 80G, they were heard together and for the purposes of convenience, adjudicated by this common order.

At the outset, we have noted that the Registry has identified the delay of 541 days in this case for filing of appeals. Justifying the delay, the appellant had submitted that due to bona fide and unavoidable reasons the appeal could not file in time. It was submitted that the appellant was ill-advised by his tax professionals regarding the course of action after the rejection of its petitions contributing the delay. All these factors contributed to the above-mentioned delays. Thus, it was argued that the delay is not intentional. We are conscious that no litigant gains by delay its matter. The Ld. DR did not seriously object to the condonation of delay. Delay of 541 days in filing of these assessee’s appeal are condoned in larger interest of justice and in light of Hon’ble Apex court decision in the case of Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC).

The ld. DR while relying upon the order of the lower authorities, took us through the factual matrix of the case. We have noted that the rights of natural justice of the assessee have been violated in as much as the impugned order u/s 12A dated 18.03.2026 has been passed without giving adequate opportunity of being heard. The fact of ex-parte order of CIT(E) is evident from the conclusion drawn by him in his order to reject assessee’s application on premise of non-submission of required documents. We are conscious that no litigant gains by non-prosecution of its case. In the interest of justice, we remit the matter back to the file of Ld. CIT(E) for re-adjudication de novo, in accordance with law and by passing a speaking order. The assessee shall be bounden to comply with all the statutory notices and any non-compliance would be adversely viewed. Accordingly, the appeals of the assessee vide ITA No.4558/Del/2026 and vide ITA No. 4559/Del/2026 are allowed for statistical purposes.

Finally, both the appeals of the assessee are allowed for statistical purposes.