CHIRANABIN,HOWRAH V. C.I.T.(EXEMPTION), KOLKATA

ITA 968/KOL/2025

AI Insights

The case involves Chiranabin, a charitable trust, appealing against the order of the Commissioner of Income Tax (Exemptions), Kolkata, which rejected their application for exemption under section 80G of the Income Tax Act, 1961. The primary issue was the cancellation of the provisional registration under section 80G(5)(iii) due to alleged non-compliance with the terms of notices. The appellant argued that the delay in filing the appeal was unintentional and due to various internal challenges, including the unavailability of key committee members and the late engagement of legal representation. The ITAT found merit in the appellant's request for a fresh consideration of the facts and remanded the case back to the CIT(E).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 707106 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 06-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Set aside; Charitable institution
• Section: 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH”, KOLKATA SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 968/KOL/2025 Chiranabin, At Parbakshi Post Bakshi, Howrah, West Bengal - 711303 [PAN: AAAAC3200F] ……..…...…………….... Appellant vs. The Commissioner of Income Tax, (Exemptions), Kolkata 10B, Middleton Row (6th Floor), Kolkata - 700071 ................................. Respondent Appearances by: Assessee represented by : P.K. Ray, Advocate R.C. Halder, Advocate Trideep Nayak, AR Department represented by : Raja Sengupta, CIT-DR Date of concluding the hearing : 08.07.2025 Date of pronouncing the order : 09.07.2025 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER 1. In this case, there is a delay of 67 days which has been requested to be condoned as under: “1. That an appeal has been preferred by the appellant before Hon'ble Income Tax Appellate Tribunal, Kolkata against the order of the Ld. Commissioner of Income Tax (Exemptions) / Kolkata, rejection the approval of exemption under clause (iii) of second proviso to sub-section (5) of Section 80G of the Income Tax Act, 1961. 2. The said order of the Ld. Commissioner of Income Tax (Exemptions) / Kolkata, was passed and received by mail on 27.12.2024. Therefore, the appeal should have been instituted within 60 days from the receipt of such order, i.e., on or before 26.02.2025. 3. The appeal is being filed on or after 26.02.2025, with a prayer for condonation of a delay of more or less 67 days 4. The reasons for such delay are submitted as under: a) That the Appellant is the Institution is a purely charitable and voluntary organization, pecuniary help to poor pupils and public, the income of this Society is 2 ITA No.968/Kol/2025 Chiranabin not sufficient for running and maintaining the activity of the Organization. So, the Donation which requires to be received from the member and well-wisher of the Institution is very essential for running and maintaining the activity. The Society is engaged in different Social Development Programme with the support of different funding agencies for giving whole hearted free services to the rural community irrespective of caste and creed. b) That the Appellant is a charitable trust, and its governing body members, who are volunteers did not assemble as frequently as required for the institution's administrative activities Due to this, the decision to file an appeal before this Hon'ble Tribunal in connection with rejection the approval of exemption under clause (iii) of second proviso to sub-section (5) of Section 80G of the Income Tax Act, 1961, could not be take in a timely manner. c) That the Appellant could not engage an Advocate/ legal Practitioner in time to file the appeal before this Hon'ble Tribunal, Income Tax Appellate Tribunal, Kolkata. d) That the Appellant faced internal challenges among the Executive Committee members responsible for the institution's administration. These challenges hindered the Executive Committee from functioning effectively and making timely decisions, including the decision to file the appeal before the Hon'ble Income Tax Appellate Tribunal, Kolkata, in connection with the approval of exemption under clause (ii) of second proviso to sub-section (5) of Section 80G of the Income Tax Act, 1961. Specifically. There was a lack of consensus on the way forward in responding to rejection the approval of exemption under clause (iii) of second proviso to sub-section (5) of Section 80G of the Income Tax Act, 1961. Key members of the committee were unavailable due to personal reasons and health issues as well as they offered their services in voluntary basic The Society also faced difficulties in organizing meetings of the executive committee. e) That the Appellant could not find a representative in their locality and finally assigned the present authorized representative, Advocate Sri Paban Kumar Ray, on 30 04.2025, to file the appeal and take the necessary steps before the Hon'ble Income Tax Appellate Tribunal, Kolkata, to seek justice concerning the rejection the approval of exemption under clause (iii) of second proviso to sub-section (5) of Section 80G of the Income Tax Act, 1961. The delay was not due to any mala fide intention, but solely due to the reasons stated above The Appellant was genuinely prevented from filing the appeal within the prescribed time. Therefore, it is requested that, as the delay is unintentional, the delay of more or less 67 days in filing the appeal may be condoned, and the appeal may be admitted for adjudication on its merits, in the interest of substantial justice. Prayer: In view of the above submissions, it is respectfully requested that this Hon'ble Tribunal to accept that the delay in filing the appeal was unintentional and not due to any negligence. It is therefore prayed that the delay of more or less 67 days be condoned, and the appeal be considered on its merits, in the interest of substantial justice.” 3 ITA No.968/Kol/2025 Chiranabin 1.1 Considering the reasons given in the said petition, the delay is hereby condoned. 2. This appeal arises from the order u/s 80G(5) of the Income Tax Act, 1961 (hereafter “the Act”), dated 27.12.2024, passed by the Ld. Commissioner of Income Tax (Exemptions) – Kolkata (hereafter “the Ld. CIT(E)”]. Through this order, the provisional registration granted u/s 80G(5)(iii) of the Act has been cancelled. This was done on account of the fact that the assessee did not make a comprehensive compliance to the terms of notices issued by the Ld. CIT(E). 2.1 Aggrieved with this action, the assessee has approached the ITAT. Before us, the Ld. AR pleaded that they had made substantial compliance and that could have been enough to grant the registration with was applied for. The Ld. AR pleaded for another chance to present the facts before the Ld. CIT(E). 2.2 The Ld. DR relied on the impugned order. 3. We have carefully considered the records before us and heard the Ld. AR/DR. Considering the facts and circumstances of this case, we deem it fit to remand the matter back to the file of Ld. CIT(E) for a fresh consideration on the basis of facts which the assessee could present before him. To this extent, we set aside the impugned order. 4. In result, this appeal is allowed for statistical purposes since it is remanded back to the file of Ld. CIT(E). Order pronounced on 09.07.2025 Sd/- Sd/- (Pradip Kumar Choubey) (Sanjay Awasthi) Judicial Member Accountant Member Dated: 09.07.2025 AK, Sr. P.S. 4 ITA No.968/Kol/2025 Chiranabin Copy of the order forwarded to: 1. Chiranabin 2. The Commissioner of Income Tax, (Exemptions), Kolkata 3. CIT(A) 4. CIT 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches "