SHRI VEER SHIKSHA SAMITI,GWALIOR V. COMMISSIONER OF INCOME-TAX, EXEMPTION CIRCLE, BHOPAL, BHOPAL

ITA 422/AGR/2025

AI Insights

The case involves Shri Veer Shiksha Samiti, an educational trust, which appealed against the decision of the CIT (Exemption), Bhopal, rejecting their application for registration under section 12A(1)(ac)(iii) r.w.s. 12(AB) of the Income Tax Act, 1961. The CIT (Exemption) had rejected the application primarily due to the delay in filing the application beyond the stipulated six months, without considering any reasons or hardships for the delay. The Tribunal found that the CIT (Exemption) had not properly addressed the issue of condonation of delay and had violated the principles of natural justice by not providing an adequate opportunity of hearing before deciding on the merits.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837293 (ITAT-AGRA)
• Duration Of Justice: 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2022-2023
• Appeal Filed On: 27-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: SUKESH KUMAR JAIN; PCIT
• Assessee Lawyers: SANCHIT MITTAL
• Keywords: Condonation of delay; Set aside; Period of limitation; Principle of natural justice

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 422/Agr/2025 Assessment Year : 2022-23 Shri Veer Shiksha Samiti Jain Chhatrawas Hospital Road, Opposite Madhav Dispensry Lashkar Gwalior- 474 009 V CIT (Exemption) Circle, Bhopal PAN : AAMTS2399Q (Appellant) (Respondent) Assessee by Shri Sanchit Mittal, CA Department by Shri Sukesh Kumar Jain, PCIT(DR) Date of hearing 16/02/2026 Date of pronouncement 16/02/2026 ORDER PER SUNIL KUMAR SINGH, JUDICIAL MEMBER This appeal has been preferred by the assessee against the order dated 30.06.2025 passed by Ld. CIT (Exemption), Bhopal on assessee’s application No. CIT (Exemption), Bhopal/2024-25/12AA/12031, wherein Ld. CIT(E) has rejected assessee’s application for its registration u/s 12A(1)(ac)(iii) r.w.s. 12(AB) of the Income Tax Act, 1961. 2. The adjournment request of the assessee was rejected. Heard the parties and perused the records. 3. Briefly stating, assessee filed an application in form 10AB for registration u/s 12A(1)(ac)(iii) of the Act, 1961 on 18.11.2024 after its provisional registration on 23.09.2021 beyond the period of limitation of six months. Ld. CIT(E), observed that the appellant did not submit any reason or hardship for the delay, however, Printed from counselvise.com 2 ITA No. 422/Agr/2025 Shri Veer Shiksha Samiti, Gwalior v CIT (Exemption), Bhopal without passing any specific order in respect of condonation of delay, he straight away proceeded to decide the application on merit. The law on the subject of delay is well settled. Unless the delay is condoned, the proceeding does not come into existence legally, and in such absence, the authority is without jurisdiction to hear or decide the same on merit. The rules of limitation are based on the principles of sound public policy. Thus, the issue of condonation of delay was to be decided at the first instance before delving into the merits of the case. However, if the delay is condoned, there is no bar to proceed with the case and decide the same on merits. Even if, it is inferred that Ld. CIT(E) condoned the delay by implication, he was required to afford sufficient opportunity of hearing to the appellant before passing the order on merit. The impugned order has been passed in violation of the principles of natural justice. For removing the ambiguity, that has arisen from non-speaking order of Ld. CIT(E) on the subject of condonation, we, explicitly order and condone the delay in filing the aforesaid application for the registration and remit the matter back to the file of Ld. CIT (E) with the direction to decide the matter on merits afresh in accordance with the law after affording an opportunity of hearing to the appellant assessee. 4. In the result, the appeal is allowed for statistical purposes. Impugned order dated 30.06.2025 is set aside. Order pronounced in the open court on 16.02.2026 Sd- Sd- ( S. RIFAUR RAHMAN) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 16.02.2026 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra Printed from counselvise.com "