New Ashraya Foundation , Hyderabad V. Commissioner of Income Tax (Exemptions), Hyderabad

ITA 130/Hyd/2021

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6378 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: misc
• Appeal Filed On: 23-02-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAVINDRA CHENJI
• Section: 12; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘A’ BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L. P. SAHU, ACCOUNTANT MEMBER (Through Virtual Hearing) ITA No.130/Hyd/2021 M/s. New Ashraya Foundation, Hyderabad. PAN AADAN2887Q .....Appellant. Commissioner of Income Tax (Exemptions), Hyderabad. ..Respondent. Appellant By : Shri Ravindra Chenji, Adv. Respondent By : Shri Rajendra Kumar. (D.R) Date of Hearing : 14.12.2021. Date of Pronouncement : 15.12.2021. O R D E R Per L.P.Sahu, A.M. : This appeal filed by the assessee arises from the order of Commissioner of Income Tax (Exemptions), Hyderabad dt.05.12.2019 passed in F. No. CIT(E)/Hyd/16(06)/12A & 80G/2019-20 in proceedings under Section 12AA(1)(b)(ii) of Income Tax Act, 1961 (‘the Act’). 2 ITA No.130/Hyd/2021 2. The assessee has raised the following grounds of appeal : “1. The order of the CIT(E) (referred to as CIT(A) dated 5.12.2019 is contrary to law and facts. 2. The CIT(E) erred in rejecting the application for registration u/s. 12A of the Act. 3. The CIT(E) ought to have appreciated the fact the Trust had carried out the objects as specified under the Trust Deed and granted the registration as sought. 4. The appellant craves leave to add, amend or alter any of the aforesaid grounds as the occasion may require.” 3. This appeal is barred by limitation, there is a delay of 387 days in filing. Learned counsel submitted that due to the outbreak of pandemic covid 19 unable to get the documents from the department which caused the impugned delay in filing of the instant appeal. Case law Collector Land Acquisition Vs. Mst. Katiji & Ors, 1987 AIR 1353 (SC) and University of Delhi Vs. Union of India, Civil 3 ITA No.130/Hyd/2021 Appeal No.9488 & 9489/2019 dated 17 th Dec., 2019, hold that such a delay; supported by cogent reasons, deserves to be condoned so as to make way for the cause of substantial justice. We accordingly hold that assessee's impugned delay of 387 days is neither intentional nor deliberate but due to the circumstances beyond its control. The same stands condoned. Case is now taken up for adjudication on merits therefore. 4. The learned counsel has submitted his submissions as under : “ At the outset, it is submitted that there is a delay of 387 days in presenting the appeal. The reasons for the delay are that the Appellant made an application in Form lOA for the registration under section 12 A of the Act on 19.6.2019. It also submitted required information vide its letter 21/11/2019. Unfortunately, the CIT (Exemption) did not consider the submissions and rejected the application for Non-compliance vide his order dated 5.12.2019. (Page No. 1 to 4). The AR who was dealing with the matter, submitted another application on 31.12.2019 before the CIT(Exemption) again seeking registration, which is wrong, he ought to have preferred appeal before the Hon'ble ITAT. The AR withdrew this application on 8-6-2020 (page 15) 4 ITA No.130/Hyd/2021 and did not inform the Appellant and gave the impression that the matter was pending before the CIT and kept the appellant in dark. 1.1 As the registration was getting delayed, the appellant made enquiries on his own with the Department and found that the application was rejected and the second application was also withdrawn as erroneously filed. The Trust was totally helpless and put in dark. By the time the Appellant understood the loss and took effective steps for redressal of issue, there was lapse and delay of 387 days occurred. It was also in the period of COVID 19 and the movements were restricted. As such the delay was inadvertent, unintentional beyond the control of the Appellant. 1.2 The Hon'ble Tribunal be pleased to take sympathetic view in the matter and condone the delay and dispose the appeal on merits of the case and in the interest of justice, else, the appellant would be put to undue hardship. 2. The Appellant is a Trust formed on 30/1/2017 with charitable activities. The Appellant furnished the required information before the CIT(Exemptions) vide its letter on 21.11.2019 (pages 5 to 63). 2.1 The CIT (Exemptions) without considering the reply, summarily rejected the application in Form lOA observing that in the absence of the information the genuineness of the Trust and its activities cannot be verified. The non-consideration of reply had led to the rejection causing undue hardship to the appellant. 5 ITA No.130/Hyd/2021 3. The Hon'ble Tribunal be pleased to take the information into consideration and direct the CIT (Exemptions) to grant the registration under section 12A of the Act.” 5. The learned counsel further submitted that the CIT(E) has dismissed the application filed by the assessee as under : 6 ITA No.130/Hyd/2021 6. The ld. D.R. relied on the order of CIT (Exemptions). 7. We have heard both the parties and perused the material on record. The learned counsel submitted that all the documents were filed before the CIT(E) but he has not considered while adjudication. Therefore he prayed that the matter may be sent back to CIT(E) and his prayer is accepted and the matter is remitted to the file of CIT(E) with a direction that the assessee be afforded three effective opportunities of hearing. The assessee is directed to appear before the CIT(E) with complete documents as required by him. 7 ITA No.130/Hyd/2021 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 15th Dec., 2021. Sd/- Sd/- (S.S. GODARA) (L.P. SAHU) Judicial Member Accountant Member Hyderabad, Dt. 15.12.2021. * Reddy gp Copy to : 1. M/s. New Ashraya Foundation, Plot No.19, JK Colony, Neredmet, Hyderabad-500 056 2. CIT(E), Hyderabad. 3. ITO(Exemptions)-2, Hyderabad. 4. Hyderabad. 5. DR, ITAT, Hyderabad. 6. Guard File. By Order Sr. Pvt. Secretary, ITAT, Hyderabad.