SAMAST BRAM YUVA TRUST,JUNAGADH V. THE COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

ITA 963/AHD/2023

AI Insights

Samast Bram Yuva Trust filed an appeal against the order of the Commissioner of Income Tax (Exemptions), Ahmedabad, which rejected their application for registration under Section 12AB of the Income Tax Act, 1961. The rejection was initially due to the absence of sufficient documentation to verify the trust's objectives and activities. The trust's appeal was delayed by 209 days, attributed to the trustee's unfamiliarity with technology and reliance on a junior CA who also failed to manage the matter timely. The Tribunal found the reasons for the delay to be bona fide and not prejudicial to the interests of the revenue, thus condoning the delay and allowing the appeal for statistical purposes.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 653020 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RITESH PARMAR
• Keywords: Condonation of delay; Charitable institution; Benefit of exemption

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE: SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No. 963/Ahd/2023 (िनधा[रण वष[ / Assessment Year : NA) Samast Bram Yuva Trust Dharmik Farm, Nr. Apna Ghar, Nr. Gayatri Mandir Road, Girnar Road, Junagadh – 362001 बनाम / Vs. The Commissioner of Income Tax (Exemption), Ahmedabad Öथायी लेखा सं./जीआइआर सं./PAN/GIR No. : ABATS4924J (Appellant) .. (Respondent) अपीलाथȸ ओर से /Appellant by : None Ĥ×यथȸ कȧ ओर से/Respondent by : Shri Ritesh Parmar, CIT. DR Date of Hearing 24/04/2025 Date of Pronouncement 18/06/2025 (आदेश)/ORDER PER SMT. ANNAPURNA GUPTA, AM: The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Exemption), (hereinafter referred to as “CIT(E)”), Ahmedabad dated 05.03.2023 rejecting assessee’s appeal seeking approval under Section 12AB of the Income Tax Act, 1961 (hereinafter referred to as the “Act”). ITA No. 963/Ahd/2023 [Samast Bram Yuva Trust vs. CIT(E)] - 2 – 2. The appeal is time barred by 209 days. The assessee has filed condonation application seeking condonation of delay which reads as under: “The appellant is a public charitable trust engaged in the activities of the nature of charitable activities like medical, educational and other help to the poor and needy people in India. The appellant trust was registered with the office of Charity Commissioner on 07.03.2020. The trust made an application for registration under sections 12A/12AA of the Income Tax Act on 07.09.2022. The Commissioner of Income Tax (Exemptions), Ahmedabad rejected the application for registration without giving sufficient opportunities to the appellant to submit relevant documents required for registration and passed an order on 05.03.2023 rejecting the application. The appellant is filing an appeal today before the Hon'ble Tribunal against the rejection of registration of order of The Commissioner of Income Tax (Exemptions), Ahmedabad. The appellant hereby respectfully requests the Hon'ble Tribunal for condonation of delay of of days for the delay because of the following bona fide reasons. number The Commissioner of Income Tax (Exemptions), Ahmedabad had sent the order dated 05.03.2023 through email only. The trustee of the appellant whose email address was given in the application does not regularly access email. The trustee is an employee and is not in business. Therefore, he only casually goes through his emails. When he accessed his emails in October, 2023, he came to know about such a rejection order issued by The Commissioner of Income Tax (Exemptions), Ahmedabad. Also, the trustee of the appellant does not understand the procedures and provisions of the Income Tax Act and he entirely relied on his some Junior CA in Junagadh for this work. His junior CA in Junagadh also did not take care of the matter and therefore, the delay occurred. Thus, it was a bona fide mistake on the part of the trustee and his CA. Because of the genuine reasons and bona fide lapse, the delay of number of days has occurred. ITA No. 963/Ahd/2023 [Samast Bram Yuva Trust vs. CIT(E)] - 3 – It is respectfully submitted that because of the delay in filing of appeal before the Hon'ble Tribunal, there is no loss to the revenue and nothing would prejudice the interest of revenue in any manner. The appellant hereby most respectfully requests the Hon'ble Tribunal to kindly condone the delay_____ number of days to the appellant.” 3. As is evident from a perusal of the application filed, the explanation of the assessee for the delay in filing present appeal before us is the fact of the trustees not being well versed and well acquainted with the technology of the internet/email, through which, the present proceedings were undertaken, and therefore, did not access email where notices were being sent for hearing in the application of the assessee seeking approval u/s.12AB of the Act. For this reason, the proceedings were not participated by the assessee. The assessee has admitted to his lapse in filing of the present appeal and, therefore, sought condonation of delay. 4. Ld. DR opposed the same. 5. Having considered the application of the assessee we find the reasons given by the assessee to be bonafide. The assessee trust is located in Junagadh and since adoption of technology by the department for conducting proceeding was a recent development, it is not unreasonable that the assessee was not fully aware of the manner of usage of the same. The assessee could very well have missed out on accessing the notice sent on its email and for that matter even the order passed by the Ld. CIT(E) denying the approval u/s.12AB of the Act. The Ld. DR has been unable to ITA No. 963/Ahd/2023 [Samast Bram Yuva Trust vs. CIT(E)] - 4 – demonstrate any gross incorrectness in the reasons brought out by the assessee before us nor has he been able to demonstrate the lack of sufficient cause with the assessee for the delay. Considering the implication of not condoning the delay being denial of grant of registration as a charitable trust to the assessee resulting in the assessee being denied the benefit of exemption of its income, which is a very serious consequence, we are inclined to accept the explanation furnished by the assessee for the delay in the interest of justice. We accordingly condone the delay of 209 days in filing of the present appeal before us and proceed to adjudicate the same. 6. The order of the Ld. CIT(E) reveals that he has passed ex parte order denying registration in the absence of any evidences furnished by the assessee as to verify the objects of the assessee trust as also the genuineness of the activities carried out by it, which was essential for granting registration. 7. We have noted that only two opportunities of hearing were granted to the assessee i.e. on 10.12.2022 and 03.01.2023. Noting the explanation of the assessee furnished on oath by way of an affidavit stating that it was not familiar with the usage of technology and, therefore, did not access its email where the notice of hearing in the present case was served by the Ld. CIT(E), we are of the view that the denial of grant of registration for lack of any details submitted by the assessee is not justified. We, therefore, consider it fit to restore the matter back to the Ld. ITA No. 963/Ahd/2023 [Samast Bram Yuva Trust vs. CIT(E)] - 5 – CIT(E) to afford due opportunity of hearing to the assessee and, thereafter, pass order on the application of the assessee seeking registration u/s.12AB of the Act in accordance with law. 8. In the result, appeal filed by the assessee is allowed for statistical purposes. This Order pronounced on 18/06/2025 Sd/- Sd/- (SUCHITRA KAMBLE) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 18/06/2025 S. K. SINHA True Copy आदेश कȧ Ĥितिलǒप अĒेǒषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंिधत आयकर आयुƠ / Concerned CIT 4. आयकर आयुƠ(अपील) / The CIT(A)- 5. ǒवभागीय Ĥितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "