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TMI Blog2024 (9) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... into force, the bar u/s 13(1)(b) will not apply and entire income would be entitled for exemption u/s 11. Thus, when assessee was in existence much prior to commencement of Income-tax Act, 1961, the embargo of Section 13(1)(b) has no application. We find that CIT(E) before rejecting the application u/s 12A/12AB has not examined the activities of the assessee-trust. Therefore, the matter is restored back to the file of CIT(E) to reconsider the application of assessee on merit and pass order in accordance with law. Needless to direct that before passing the order afresh, CIT(E) shall grant reasonable opportunity of being heard to the assessee. The assessee is also given liberty to file written submission and evidence as and when called for. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra K Deboo. The Ld.AR of the assessee submits that assessee-trust has appointed a firm of Chartered Accountants M/s Thacker Butala Desai, CA for various compliance and income tax matters. The said CA firm filed an application Form- 10AB for registration of assessee-trust under section 12A/12AB, which was rejected by Ld.CIT(E) on 18.09.2020. The said CA firm again file similar application afresh 07.05.2022 for registration of assessee-trust under section 12A/12AB, the second application was rejected on 29.11.2022 but said CA has not informed the trustee of the assessee-trust till May-2023. The trustee of assessee was informed only on 22nd May 2023. The trustee of assessee on coming to know about such dismissal of rejection of their applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... way of Finance Act-2021, assessee applied for provisional registration. The provisional registration was allowed to assessee. The assessee applied for regular registration under section 12AB in Form-10AB initially 25.01.2020 and again second time on 17.05.2020. The Ld.CIT(E) issued a show caused notice in second application on 17.10.2022 sent through ITBA e-portal on e-mail i.e. given by applicant/assessee in their on-line application to furnish detailed activities actually carried out by assessee-trust. In response to said show cause notice, assessee furnished requisite details of activities. The Ld.CIT(E) on examination details, of object / certified copy of Public Trust Registrar (in short, PTR ) noted that object of assessee-trust are r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of Hon ble Andhra Pradesh High Court in the case of CIT vs. Arya Vysya Kalyana Nilaya Sangam [1986] 159 ITR 324 (AP)/[1986] 54 CTR 155 (AP) [13.12.1984] and decision of Hon ble Madhya Pradesh High Court in the case of CIT vs. Maheshwari Agarwal Marwari Panchayat [1982] 10 Taxman 183 (MP)/[1982] 136 ITR 556 (MP)[26.06.1981].The Ld. AR of the assessee submits that assessee fulfilled all the conditions and appeal of assessee may be allowed. 6. On the other hand, ld. CIT-DR for the Revenue on the plea of condonation of delay submits that the assessee has not explained the delay properly. No reasonable cause is shown by the assessee. On merits the ld CIT-DR for the revenue supported the order of Ld.CIT(E). The Ld.CIT-DR for the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee while making his submission, raised the plea that assessee relied on the ill-advice of their previous tax consultant and could not file appeal within due time. The Ld. AR for the assessee also prayer that technical consideration should not come in the way of justice. We find that on advice of present Ld. AR for the assessee, the assessee filed present appeal. On considering the totality of facts and circumstances, we find that there is no gross or negligence or mala fide intention in filing appeal belated. 8. We find that The Hon'ble Jurisdictional High Court in Jayvantsinh Vagehela Vs ITO (2013) 40 taxmann.com 491 (Guj) held that unless there is a gross negligence or malafide intention, delay in filing appeal to be condoned. Fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tration Ld.CIT(E) is required to examine the object and activities raised by assessee-trust and there is no such order on merit of the case. So far as other objection of rejection is concerned about applicability of Section 13(1)(b), we find that assessee-trust was established much prior to commencement of Income-tax Act, 1961. The assessee-trust was set-up in 1953, which is evident form the copy of trust deed registered with Charity Commissioner, filed at pages 2 to 13 of paper book. 10. We find that Hon ble Andhra Pradesh High Court in the case of Arya Vysya Kalyana Nilaya Sangam (supra) held that when the trust was in existence prior to commencement of Income-tax Act, 1961, the provisions of Section 13(1)(b) had no application and qualif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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