NEWDREAM WELFARE FOUNDATION ,CUTTACK V. CIT(EXEMPTION), HYDERABAD

ITA 701/CTK/2025

AI Insights

Newdream Welfare Foundation filed two appeals against the orders of the CIT(Exemption), Hyderabad, which rejected their applications for registration under section 12AB and approval under section 80G of the Income Tax Act due to the belated filing of Form 10AB. The Tribunal found that the assessee had sufficient reasons for the delay and that the principles of natural justice warranted an opportunity for the assessee to explain the delay before a final decision on the registration and approval was made. Consequently, the Tribunal restored the matter to the CIT(Exemption) for a fresh decision.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833586 (ITAT-CUTTACK)
• Duration Of Justice: 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2025-2026
• Appeal Filed On: 04-12-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHIM KUMAR CHAKRABORTY
• Assessee Lawyers: K.K.BAL
• Keywords: Condonation of delay; Opportunity of being heard; Principle of natural justice

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.701 & 711/CTK/2025 (नििाारण वर्ा / Assessment Year : 2025-2026) Newdream Welfare Foundation, C/o M/s Brahmananda & Co., Anadi Bhawan, Ranihat, Cuttack Odisha-753001 Vs CIT(Exemption) Hyderabad PAN No. :AAICN 4173 A (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri K.K.Bal, Advocate राजस्व की ओर से /Revenue by : Shri Ashim Kumar Chakraborty, CIT-DR सुनवाई की तारीख / Date of Hearing : 03/02/2026 घोषणा की तारीख/Date of Pronouncement : 03/02/2026 आदेश / O R D E R Per George Mathan, JM : These two appeals are filed by the assessee against the separate orders both dated 15.09.2025 passed by ld. CIT(Exemption), Hyderabad for the assessment year 2025-2026. 2. ITA No.701/CTK/2025 is filed belatedly by 04 days and ITA No.711/CTK/2025 is filed belatedly by 08 days. In this regard, the assessee has filed an application for condonation of delay along with affidavit stating sufficient reasons for delay. Ld. CIT-DR also did not object to condone the delay. Considering the prayer of the assessee in its application supported with affidavit, we are of the view that the assessee has sufficient reasons for delay in filing the present appeals. Accordingly, we condone the delay Printed from counselvise.com ITA No.701&711/CTK/2025 2 of respective days in both the appeals and both appeals of the assessee are admitted for hearing. 3. It was submitted by the ld. AR that the assessee had applied in Form 10AB seeking registration u/s.12AB of the Act along with approval u/s.80G of the Act. It was the submission that the ld.CIT(E) has rejected the application for registration on account of delay in filing Form 10AB. It was the submission that no opportunity was granted to the assessee to explain the delay. It was the prayer that the issues may be restored to the file of ld. CIT(E) so that the assessee could explain the delay. 4. In reply, ld.CIT-DR vehemently supported the order of the ld. CIT(E). 4. We have considered the rival submissions. A perusal of the facts of the present case clearly shows that the assessee has filed application for registration u/s.12AB of the Act along with approval u/s.80G of the Act, which was rejected by the ld. CIT(E) on account of filing of form 10AB belatedly. A further perusal of the order of the ld. CIT(E) shows that the CPC has issued the registration u/s.12A(10(ac)(iii) of the Act in Form No.10AC on 26.10.2022 which is valid from A.Y.2023-24 to AY 2025-26. However, the assessee filed e-application in Form No.10AB seeking registration u/s.12AB along with approval u/s.80G of the Act and the ld. CIT(E) has rejected the application of the assessee holding that the application in Form 10AB has been filed beyond the time limit prescribed. Admittedly, the assessee has filed the application belatedly. When the power for granting the registration is available with an authority, the power to condone the delay in filing the application is also available with the Printed from counselvise.com ITA No.701&711/CTK/2025 3 authority. This is a part of principle of natural justice and judicial jurisprudence. Before rejecting an application for registration on account of delay, it would be worthwhile to grant the assessee an opportunity of being heard. This being so, in the interest of justice, the issues in this appeal in respect of grant of registration u/s.12AB of the Act along with approval u/s.80G of the Act is restored to the file of ld. CIT(E) for deciding afresh after granting the assessee adequate opportunity to explain the delay in filing the application for regular registration u/s.12AB of the Act and the approval u/s.80G of the Act. 5. In the result, both appeals of the assessee are partly allowed for statistical purposes. Order dictated and pronounced in the open court on 03/02/2026. Sd/- (LAXMI PRASAD SAHU) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 03/02/2026 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "