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Judgment
PER AMITABH SHUKLA, AM
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 ‘ld. CIT(E)] both dated 10.12.2024 passed under section 12AB(1)(b)(ii) and 80G of the Income Tax Act, 1961, for the Assessment Year 2025-26. The word ‘Act’ herein this order would mean Income Tax Act, 1961.
The appeal of the assessee vide ITA No.2971/Del/2026 is regarding the rejection of its request filed under section 12A(1)(ac)(ii) of the Act. The appeal of the assessee vide ITA No.2972/Del/2026 is regarding the rejection of its request filed under section 80G(5)(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.
The Registry has identified a delay of 387 days and 660 days in these cases, in filing of these appeals before the tribunal. In its affidavit the assessee, has pleaded that the appellant applied for registration u/s 12A by filing Form No. 10AB on 29.06.2024, the learned CIT (Exemptions) rejected this application on 10.12.2024. However, the assessee/appellant was under a bona fide belief, the society filed a fresh application on 30.09.2025 instead of appealing the First Rejection Order. Again, the learned CIT (Exemptions) rejected the second application on 06.02.2026, declaring it "nonmaintainable". Then the assessee/appellant realized that it should have filed appeal against the First Rejection Order dated 10.12.2024. Therefore, the delay resulted solely from the appellant's genuine misunderstanding regarding the procedure and not from negligence. All these activities contributed to the delay which was neither willful nor wanton. The assessee submitted that there will not be case of any non-compliance now. The Ld. DR did not pose any serious objection to the condonation of delay. We have considered the justification put forth by the assessee and we are satisfied with their adequacy. We are also conscious of the fact that no litigant gains by intentionally delaying its own matters. Accordingly, we hereby condone the delay of 387 days and 660 days and proceed to adjudicate these appeals.
At the outset, ld. Counsel for the assessee submitted that its right to natural justice has been violated in as much as due opportunity of being heard has not been given before rejecting its request for grant of registration u/s 12A and 80G of the Act. The ld. Counsel accordingly requested that it be provided one last chance to defend its case and, the matter be considered for remission back to the ld. CIT(E). The ld. Counsel assured that full compliance shall be made to the statutory notices issued by the Revenue authorities.
The ld. DR placed reliance upon the orders of the lower authorities
We have heard rival submissions and perused the material available on record. We have noted that the Ld. CIT(E) has rejected applications of the assessee without due consideration of facts on records alluding towards a non-application of mind. We have noted from para-3.11 to para-5 of the order dated 10.12.2024 that the ld. CIT(E) has dismissed assessee’s application for grant of registration under section 12A and u/s 80G purely on account of non-compliance of the assessee. Reasonable opportunity of being heard is right of every tax payer. Be that as it may be in the interest of justice, we deem it appropriate to set-aside the impugned orders of the ld. CIT(E) and remit the matter of grant of registration u/s 12A as well as u/s 80G back to ld. CIT(E) for adjudication de novo in accordance with law. Due opportunity of being heard shall be given to the assessee. The assessee shall comply with all the statutory notices and any non-compliance shall be adversely viewed. Accordingly, the appeals of the assessee vide ITA No.2971/Del/2026 and vide ITA No. 2972/Del/2026 are allowed for statistical purposes.
Finally, both the appeals of the assessee are allowed for statistical purposes.