TARACHAND GUPTA FOUNDATION,NASHIK V. THE COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE, PUNE

ITA 935/PUN/2025

AI Insights

The case involves Tarachand Gupta Foundation, which appealed against the rejection of its applications for regular registration under section 12A(1)(ac) and approval under section 80G(5) of the Income Tax Act, 1961. The appeals were initially delayed by 562 days, attributed to confusion over the registration process and the filing of incorrect forms. The Tribunal, considering the merits of the case and the principles laid down by the Supreme Court in similar cases, decided to condone the delay and remit the matter back to the CIT(E) for a fresh decision, emphasizing the need for a fair hearing and consideration of the trust's activities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 397963 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Other Referred Cases: Inder Singh Vs. State of Madhya Pradesh
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAKESH RANJAN
• Keywords: Condonation of delay; Reasonable cause; Bonafide belief; Cancellation of registration
• Section: 143(3); 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.935 and 936/PUN/2025 Tarachand Gupta Foundation, Plot No.24, Jaipur House, College Road, Parijat Nagar, Bhonsala Military School, Nashik – 422005 Maharashtra PAN : AABTT4138P Vs. CIT (Exemption), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeals at the instance of appellant as per the grounds of appeal raised in the instant appeals are against the rejection of applications for regular registration u/s.12A(1)(ac) and approval u/s.80G(5) of the Act respectively framed by ld.CIT(E) evenly dated 19.07.2023. 2. Registry has informed that there is delay of 562 days in filing the instant appeals before this Tribunal. Affidavit for condonation of delay has been filed by the appellant explaining the reasons which led to delay in filing the appeals and the same read as under: “1. I say that the Trust was established on 18 March 2005 vide Registration number F/8415 granted by the Charity Commissioner Registry of Trust Officer. Appellant by : None Respondent by : Shri Rakesh Ranjan Date of hearing : 02.06.2025 Date of pronouncement : 03.06.2025 ITA Nos.935 and 936/PUN/2025 Tarachand Gupta Foundation 2 2. I say that the trust is registered in the erstwhile regime i.e.., under the provisions of section 12A of the Act vide registration certificate dated 28 August 2007 before the new registration provisions were introduced on 01 April 2021 3. I say that I was handling the procedure of registration of the Trust after the new registration regime was introduced from 01 April 2021. 4. I say that for the purpose of registration I had filed Form 10A on 27 December 2022 under section code 12A(1)(ac) (vi) (A) of the Act 5. I say that I had received the provisional registration for AY 2023-24 to AY 2025-26 in Form 10AC on 19 January 2023. 6.I say that there was a confusion with respect to the correct form to be filed for registration, I again applied for registration by filing Form 10AB on 01 February 2023 under section code 12A(1)(ac) (iii) of the Act 7. I say that after filing for registration in Form 10AB, I was under the presumption that the trust is registered and no further process is to be followed with respect to registration of the Trust. 9. I say that I did not file any documentation proving the genuineness of the transaction carried out by the Trust as I was unaware of the proceedings being conducted. In any case the Trust was registered under the erstwhile law the Trust was not required to apply for fresh registration, due to not knowing the intricacies of the law the Trust has inadvertently filed fresh application for registration under the new regime 10. I say that when the assessment order was passed under section 143(3) read with section 144B on 31 January 2025, I understood that the provisional registration was cancelled by the learned Commissioner of Income-tax (Exemptions) pursuant to which the scrutiny proceedings were selected and gross receipts of the Trust were sought to be taxed 11. I say that after receipt of the aforesaid assessment order dated 31 January 2025, I consulted the tax professional from Nashik/Pune for further course of action with respect to cancellation of registration under section 12AB of the Act. I was advised that an appeal should be filed against the rejection order passed under section 12AB dated 19 July 2023 with an application for condonation of delay as soon as possible before the Hon'ble Income-tax Appellate Tribunal, Pune. 12. I say that I was under a bonafide belief that once the provisional registration was granted for three AY's i.e., AY 2023-24 to AY 2025-26, there was no need to carry out any further registration process. 13. Considering that the Order u/s 12AB was received on 19 July 2023 (passed on 19 July 2023), the delay in filing the appeal is of 562 days. The delay is counted from 17 September 2023 till 1st April 2025 (tentatively filing date) ITA Nos.935 and 936/PUN/2025 Tarachand Gupta Foundation 3 14. That the delay was neither deliberate and that the Trust has strong case on merits. 16. I rely on various judicial precedents that in order to avoid miscarriage of justice the delay should be condoned.” 3. We have heard the ld. Departmental Representative and gone through the averments made in the affidavit. Hon’ble courts in plethora of judgments observed that when consideration of an appeal on merits is pitted against the rejection of a meritorious claim on the technical ground of the bar of limitation, the Courts lean towards consideration on merits by adopting a liberal approach towards ‘sufficient cause’ to condone the delay. The Court considering an application under section 5 of the Limitation Act may also look into the prima facie merits of an appeal. A liberal approach may be adopted when some plausible cause for delay is shown. Hon’ble Supreme Court in the case of Inder Singh Vs. State of Madhya Pradesh judgment dated 21.03.2025 (2025 INSC 382) condoned delay of 1537 days sub- serving the cause of justice. It was held so while observing that the appeal filed by the appellant with a delay was unintentional, much less due to any deliberate laches, and was well-explained by the State before the High Court. Hon’ble Court further held that in cases where the merits are significant, a more liberal approach may be adopted to allow for the examination of the case on its merits. Having gone through the averments made in the affidavit and considering the ratio laid down by the Hon’ble Court in the case of Inder Singh (supra), we are of the view that there was ‘reasonable cause’ which prevented the appellant in filing the appeals within the stipulated time. We therefore condone the delay of 562 days and admit the appeals for adjudication. ITA Nos.935 and 936/PUN/2025 Tarachand Gupta Foundation 4 4. When the appeals were called for, none appeared on behalf of the appellant. We therefore proceed to dispose of the appeals with the able assistance from the ld. Departmental Representative and material available on record. 5. We have heard the ld. Departmental Representative and perused the record placed before us. We notice that the appellant is a trust applied for regular registration u/s.12A(1)(ac)(iii) of the Act on Form No.10AB on 01.02.2023 and also applied for approval u/s.80G(5) of the Act on the same date. Ld.CIT(E) with a view to verify the genuineness of activities of the appellant and compliance to requirements of any other law, issued notice through ITBA portal on 25.05.2023 requiring the appellant to upload certain information/clarification. There was no compliance from the side of appellant. In the event, ld.CIT(E) rejected the application of the appellant for grant of regular registration by cancelling the provisional registration granted to it on 19.01.2023. Similar is the situation with regard to application for grant of approval u/s.80G(5) of the Act. Now the appellant has approached this Tribunal with a request to provide one more opportunity as it failed to avail the opportunity and make the submissions before the authorities. 6. A perusal of the record indicates that appellant failed to make proper compliance before the lower authorities. There may be many reasons for non-appearance of the appellant which cannot be ruled out. We therefore considering the facts and circumstances of the case and in the larger interest of justice, deem it proper to give one more opportunity to the appellant to go before ld.CIT(E) and file the requisite details as called for by the ld.CIT(E) pertaining to genuineness of activities of the trust. In view thereof, we remit the issues of regular registration u/s.12AB ITA Nos.935 and 936/PUN/2025 Tarachand Gupta Foundation 5 as well as approval u/s.80G(5) of the Act to the file of ld.CIT(E) for denovo adjudication. Ld.CIT(E) after considering the submissions of the assessee shall pass a speaking order in accordance with law. Assessee is directed to provide latest email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds raised by the appellant in both the appeals are allowed for statistical purposes. 7. In the result, both the appeals of the appellant are allowed for statistical purposes. Order pronounced on this 03rd day of June, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 03rd June, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "