2023 (7) TMI 1331 - AT - Income Tax

Condonation of delay - leaving aside the period of limitation owing to the Covid pandemic, there is a delay of 226 days in filing of the present appeal - HELD THAT - As observed that the delay in filing of the present appeal is due to mistake of the consultant appointed by the assessee and the bona fide mistaken belief of the assessee that it was already in possession of the approval of registration under Section 12A of the Act for the impugned Assessment Year. Vishakhapatnam ITAT in the case of Smt. Samanthapudi Lavanya 2021 (5) TMI 26 - ITAT VISAKHAPATNAM held that where assessee was under bona fide impression that its appeal had been filed by accountant, but came to know fact of not having filed appeal when there was pressure from department for payment of demand, delay of 492 days in filing appeal was to be condoned, in the interests of justice.Thus in interest of justice, we are hereby condoning the delay in filing of the present appeal. Rejecting application u/s 12A - As the assessee submitted that it was purely owing to the omission on the part of the consultant of the assessee trust, that the application for approval for grant of registration was rejected for the impugned Assessment Year, since the consultant did not file the requisite documents before the CIT-Exemptions. and the assessee is engaged in the activity of organising blood donation camp at various places, which is a charitable activity and hence entitled to grant of registration under Section 12A - as submitted before us that if given an opportunity the assessee shall furnish all requisite documents before the CIT-Exemptions so as to enable him to grant the necessary registration u/s 12A - HELD THAT - On going to the facts of the instant case, in interest of justice, the matter is being restored to the file of CIT-Exemptions for de novo consideration after giving due opportunity of hearing to the assessee.

Summary

Issues involved:
The appeal against the order passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad for Assessment Year 2021-22.

Delay Condonation:
The appeal was time-barred by 671 days, but the delay was attributed to the consultant's mistake and the assessee's mistaken belief of having registration. The Supreme Court emphasized that the expression 'sufficient cause' in the Limitation Act allows for a liberal approach to ensure substantial justice. The delay of 226 days was condoned in the interest of justice.

Merits of the Case:
The counsel argued that the rejection of the registration application was due to the consultant's omission, and the trust's charitable activities, like organizing blood donation camps, warrant registration under Section 12A. The genuineness of the trust's activities was supported by subsequent approvals by CIT-Exemptions. The counsel requested the matter to be restored for de novo consideration by CIT-Exemptions to grant the necessary registration.

Decision:
In the interest of justice, the matter was restored to the file of CIT-Exemptions for reevaluation after providing the assessee with a hearing opportunity. The appeal was allowed for statistical purposes.