Sunlight Foundation vs CIT (Exemption)

PER MANISH AGARWAL, AM :

These two appeals are filed by the assessee against the separate orders of Learned Commissioner of Income Tax (Exemptions), Delhi [the CIT(E) in short], dated 11.10.2024 rejecting the application for registration u/s 12A(1)(ac)(iii) and 80G(5) of the Act. As both the appeals are related to issue of registration u/s 12A and 80G, thus they are decided by a common order.

The appeal filed by the assessee is delayed by 436 days for which an affidavit cum condonation petition was filed by the Trustee of the appellant Trust wherein it is stated that had filed the application for registration u/s 12A and 80G of the Act however, has not received any communication as the mail ID given was of the employee who left the organization. It is only when the assessee engaged one professional to file the necessary details, it has come to its notice that the ld. CIT(E) has already rejected both the applications. Under these circumstances, the appeal was filed delayed and thus it is requested that the delay in filing the appeal be condoned and both the appeals be admitted for adjudication. Reliance is placed on the judgement of Hon’ble Supreme Court in the case of Collector, Land Acquisition Vs. Mst. Katiji reported in (1987) 167 ITR 471 (SC).

On the other hand, Ld. Sr. DR strongly objected to the condonation of delay in the filing of the appeal.

Heard both the parties. From the perusal of the affidavit filed by the assessee and the reasons stated therein, we find that there is sufficient and reasonable cause with the assessee for not filing the appeal within the prescribed time limit. It must be remembered that in every case of delay there can be some lapse on the part of the litigant concerned. That alone is not enough to turn down the plea and to shut the doors against the assessee. If the explanation does not smack of mala fide or it is not put-forth as a part of dilatory strategy, the Courts must take utmost consideration to such litigant and right of hearing of the appeal on merit ought not to be turned down. Considering these facts, we condoned the delay in filing both the appeals and admit them for adjudication.

Before us, the Ld. AR of the assessee submitted assessee had filed applications in Form 10AB for registration u/s. 12A and 80G of the Act before the ld. CIT(E). It was the submission that the notices were issued by ld. CIT(E) to produce various records and supporting documents. Assessee being a small charitable organisation with limited infrastructure was not able to file the requisite details in the time allowed. It was the submission that it was in this backdrop that the ld. CIT(E) rejected both the applications filed by the assessee. Ld. AR prayed that the appellant trust may be granted one more opportunity to produce the required details as called for by the ld. CIT(E) for granting registration u/s.12A and 80G of the Act.

On the other hand, the Ld. Sr DR strongly objected to the request of the assessee and supported the order of the Ld. CIT(E) and submits that when the assessee was not serious in pursuing its applications by filing the requisite details, it should not be granted the registration as requested. He prayed accordingly.

We have considered the rival submissions. Ld. CIT(Exemption), Delhi has rejected the applications filed by assessee for non- compliance. A perusal of the impugned order of ld. CIT(E), Delhi clearly shows that notices were issued to the assessee to furnish the detailed reply on the specific information called for. However, the appellant society fails to furnish the same, for which, the registration u/s. 12A and 80G were rejected by the ld. CIT(E). Now, ld. AR submits that the appellant society has all the evidences as sought by ld. CIT(E) and will be produced if the matter is remitted to the file of ld. CIT(E). Under these circumstances, we are of the view that fair and reasonable opportunity of being heard was not provided to the assessee and hence, in the interest of justice, we set aside the order of CIT(E) and remitted the issue to the file of the CIT(E), with the direction to decide the applications of the assessee a fresh after affording reasonable opportunity of being heard to the assessee. Assessee is also directed to file all the necessary details and evidences in support of the application filed for registration u/s 12A and 80G of the Act. In view of above, both the appeals filed by the assessee are allowed for statistical purposes.

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