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Judgment
PER RENU JAUHRI :
The above captioned appeal is preferred against the order dated 15.01.2021, passed u/s 12AA(1)(b) r.w.s. 12A of the Income Tax Act, 1961 (hereinafter referred to as, “Act”) by Commissioner Income Tax (Exemption), Delhi [for short, Ld. CIT(E)].
The assessee has raised following grounds of appeal:
“ Ground of Appeal (Original)
1.The Rejection and Cancellation Order dated 15.1.2021 is bad in Law.
2.The Rejection and Cancellation Order dated 15.1.2021 is not based on facts of the case.
3.Unfortunately, the assessee did not receive the email notices and communications from the Officer. Assessee Deserve adequate opportunity to explain its case before the Officer.
Ground of Appeal (Additional)
4.The Order of the Officer is based on non-representation and isnot based on demerits of the case.
5.Assessee requests adequate representation before the officer andhis decision to be based on merits of the case.
6.The results of the said order in Appeal are harsh on assessee and justice will be served if another opportunity is given to present facts before the Officer.
7.As per Rejection orders dated 15.1.2021, the Donation certificates and receipts granted to Donors are liable to be rejected causing inconvenience to public and genuine donors.
8.Due to loss of trust with Donors, the Schools run by the Assessee are likely to suffer. Education imparted to students is also likely to be affected.”
At the threshold, it is noted that the appal is time barred by 1694 days. An affidavit in support of application for delay has been filed by the assessee. It has been explained therein that the assessee initially filed an application in Form 10A seeking registration u/s 12AA of the Act. Due to non-compliance by the assessee to notices issued by Ld. CIT(E), he rejected the assessee’s application vide order dated 15.01.2021. Thereafter, another application was filed, based on which provisional registration was granted to the assessee for A.Ys. 2022-23 to 2026-27. Subsequently, the assessee filed an application for approval u/s 80G in Form 10AB, which was, however, rejected by the CIT(E) on the ground that the provisional 12A registration has been obtained fraudulently.
It has been submitted by the assessee in its affidavit that due to change in rules relating to registration of trusts and lack of proper professional advice coupled with the fact that assessee did not receive the communication in time, it applied for fresh registration again in 2025 which was rejected solely on account of earlier rejection in 2021. Accordingly, the assessee has filed the present appeal against the original rejection order dated 15.01.2021.
Under the facts and circumstances, explained in the affidavit, the delay of 1694 days occurred in filing of appeal which was purely unintentional and due to bonafide reasons. Considering the peculiar facts and circumstances of the case, we, hereby, condone the delay in filing of appeal by the assessee which is seen to be due to reasonable cause and entirely bonafide.
At the outset, Ld.AR has requested for an opportunity to demonstrate before the Ld. CIT(E) that the requisite conditions for grant of registration are satisfied. Ld. DR has not objected to the said proposition. After hearing both the parties, in the interest of justice, we hereby, restore the matter to Ld. CIT(E) for fresh consideration on merits after giving reasonable opportunity of being heard to the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes.