MANWATA DHARMA SAMITI,WARDHA V. ITO WARD-1, EXEMP, NAGPUR

ITA 230/NAG/2025

AI Insights

The case involves Manwata Dharma Samiti, a charitable organization, appealing against the decisions of the Commissioner of Income Tax (Exemption), Pune, which had rejected their applications for regular registration under section 12A(1)(ac) and approval under section 80G(5) of the Income Tax Act. The Tribunal noted a significant delay in filing the appeals, attributed to lack of professional advice by the previous counsel, which was condoned based on precedents from the Supreme Court. The Tribunal found that the assessee had not been given sufficient opportunity to respond to discrepancies noted by the CIT(E), leading to the decision to remit the matter back for a fresh evaluation.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 846501 (ITAT-NAGPUR)
• Duration Of Justice: 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Nagpur
• Assessment Year: misc
• Appeal Filed On: 07-04-2025
• Other Referred Cases: Collector, Land Acquisition, Anantnag & Anr. Vs. Mst. Katiji & Ors., Inder Singh Vs. State of Madhya Pradesh
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PANKAJ KUMAR
• Assessee Lawyers: ABHAY AGRAWAL
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Reasonable cause; Principle of natural justice

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH :: NAGPUR BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER & SHRI KHETTRA MOHAN ROY, ACCOUNTANT MEMBER ITA Nos. 230 & 231/NAG/2025 Manwata Dharma Samiti, Wardhamaneri Arvi, Wardha-442201, Maharashtra PAN : AAEAM 3539 P vs ITO, Ward – 1 (Exemption), Nagpur. Assessee Respondent Assessee by : Shri Abhay Agrawal, Advocate Revenue by : Shri Pankaj Kumar, CIT-DR Date of hearing : 24.02.2026 Date of pronouncement : 25.03.2026 PER KHETTRA MOHAN ROY, AM: These appeals have been filed by the same assessee are directed against the separate orders of Ld. Commissioner of Income Tax (Exemption), Pune [for short, “CIT(E)”], dated 05/03/2023 & 15/05/2023; whereby applications for regular registration u/s. 12A(1)(ac) and regular approval u/s. 80G(5) of the Act have been rejected. Printed from counselvise.com ITA Nos. 230 & 231/NAG/2025 (Manwata Dharma Samiti) 2 2. Registry has pointed out that there is a delay of 677 & 616 days in filing the instant appeals. Applications for condonation of delay along with affidavits have been filed. Considering the reasons mentioned in the affidavits, which is mainly on account of lack of professional advice by the earlier counsel, we find that sufficient cause prevented the assessee from filing the present appeals in time and the delay is not intentional and therefore adopting a justice oriented approach and also taking guidance from the judgments of Hon’ble Apex Court in the case of Collector, Land Acquisition, Anantnag & Anr. Vs. Mst. Katiji & Ors. [(1987) 2 SCC 107] and in the case of Inder Singh Vs. State of Madhya Pradesh judgment dated 21.03.2025 (2025 INSC 382), hereby condone the delay of 677 & 616 days in filing of the instant appeals before this Tribunal and admit the appeals for adjudication. 3. The grounds of appeal raised before us in the instant two appeals are against the orders of Ld. CIT(E) rejecting the assessee’s applications for regular registration u/s. 12A(1)(ac)(vi) r.w.s. 12AB of the Act and grant of approval u/s. 80G(5) of the Act. 4. Learned counsel for the assessee fairly admitted that assessee failed to furnish the details and other submissions and also not Printed from counselvise.com ITA Nos. 230 & 231/NAG/2025 (Manwata Dharma Samiti) 3 responded to the discrepancies communicated by the Ld.CIT(E). His only prayer from the grounds of appeal is to provide one more opportunity, so that assessee can furnish the details to the satisfaction of the Ld.CIT(E) in order to get regular registration u/s. 12A(1)(ac)(vi) of the Act as well as approval u/s. 80G(5) of the Act. 5. Ld. Departmental Representative (DR) supported the orders of the Ld.CIT(E). 6. We have heard both the parties and perused the records placed before us. We observe that assessee is a charitable organization established with an object to provide education and medical relief to the individuals belonging to the below poverty line category. The assessee was granted provisional registration u/s. 12AB r.w.s. 12A(1)(ac)(vi) of the Act dated 04/04/2022, and subsequently has filed application for regular registration u/s. 12A(1)(ac)(vi) on prescribed Form No.10AB on 27/09/2022. Similarly, the assessee also filed application for grant of approval u/s. 80G(5) of the Act on 25/11/2022. Various discrepancies were communicated by the Ld.CIT(E) and certain other information was also called for to verify about carrying out of charitable activities and to examine the financial details. However, the assessee failed to furnish the details Printed from counselvise.com ITA Nos. 230 & 231/NAG/2025 (Manwata Dharma Samiti) 4 called for by the Ld.CIT(E), resulting into dismissal of the application for regular registration u/s. 12A(1)(ac)(vi) of the Act and grant of approval u/s. 80G(5)(ii) of the Act. Before us, the only request of the assessee is that in absence of granting proper opportunity, the assessee could not furnish the details and, therefore, sought one more opportunity to go before the Ld.CIT(E) to submit all evidences 7. We note that assessee is a charitable organization and sufficient opportunity has not been granted to furnish various details called for by the Ld.CIT(E) as appearing in page nos. 3-4 of the impugned order. Certainly for collecting the said details, the assessee needs some time and therefore, considering the facts and circumstances of the case and also in the larger interest of natural justice, we deem it appropriate to afford one more opportunity to the assessee and remit back the issue of regular registration u/s. 12A(1)(ac)(vi) of the Act as well as approval under clause (vi) of first proviso to section 80G(5) of the Act to the file of Ld.CIT(E) for afresh adjudication and to decide in accordance with merits and law. Needless to mention that reasonable opportunity of being heard shall be granted to the assessee by Ld.CIT(E). We also direct the assessee to remain vigilant and not to take unnecessary adjournments unless required for Printed from counselvise.com ITA Nos. 230 & 231/NAG/2025 (Manwata Dharma Samiti) 5 reasonable cause. Impugned orders are set aside and the grounds of appeal raised by the assessee in the instant two appeals are allowed for statistical purposes. 8. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced on 25.03.2026 under Rule 34 of Income Tax (Appellate Tribunal) rules 1963 Sd/- sd/- PAWAN SINGH KHETTRA MOHAN ROY JUDICIAL MEMBER ACCOUNTANT MEMBER Nagpur: Dated: 25/03/2026 vr/- Copy to: 1. The Assessee 2. The Revenue 3. The Pr.CIT concerned. 4. The DR, ITAT, Nagpur 5. Guard file. By order Senior Private Secretary ITAT, Nagpur Printed from counselvise.com "