Modh Chaturvedi Rajyagor Samvay Gnati Mandal Vs ITO (ITAT Ahmedabad)
9-Year Silence Costs Dearly: ITAT Ahmedabad Refuses to Condone 3,276-Day Delay, Trust Loses Sections 11 & 12 Exemption
ITAT Ahmedabad “SMC” Bench, in Shree Modh Chaturvedi Rajyagor Samvay Gnati Mandal vs ITO (Exemption) (ITA Nos. 735 & 736/Ahd/2025, AYs 2014-15 & 2015-16; order dated 24.12.2025), has dismissed the appeals of the assessee-trust by upholding rejection of inordinate delay of 3,276 days (AY 2014-15) and 2,903 days (AY 2015-16) in filing appeals before CIT(A).
The assessee-trust sought condonation on the grounds of change of auditors, death of a key person handling accounts, ignorance of intimations u/s 143(1), and absence of recovery proceedings for several years. However, Tribunal noted that the trust had been regularly getting its accounts audited, filing returns for subsequent years, and complying with statutory requirements, which clearly demonstrated awareness and operational capability.
ITAT held that vague explanations, shifting of responsibility among trustees, auditors & employees, and pleas of ignorance cannot constitute “sufficient cause” for such extraordinary & unexplained delay running into nearly nine years. The Bench observed that the assessee consciously chose not to challenge the intimations disallowing exemption u/s 11 & 12 and raising tax demands.
Accordingly, ITAT found no infirmity in CIT(A)’s refusal to condone the delay and confirmed dismissal of appeals on limitation alone, without going into merits of exemption. Resultantly, disallowance of exemption u/s 11 & 12 and consequential demands stood confirmed, and both appeals were dismissed in limine.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
