Hirawat Foundation Vs CIT (Exemption) (ITAT Chennai)
The appeal before the Income Tax Appellate Tribunal, Chennai Bench, concerned the rejection of an application for approval under Section 80G of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemptions). The impugned order dated 03.03.2025 rejected the assessee trust’s application filed in Form 10AB on the ground that it was submitted beyond the prescribed due date.
At the outset, the Tribunal addressed a delay of 160 days in filing the appeal. The assessee trust filed an affidavit from the Managing Trustee explaining that an SMS alert regarding the order had been received on the trust’s registered mobile number. One of the trustees instructed an employee to check the income tax portal and report any updates. However, the trustee failed to follow up and the employee did not report the order. The issue came to light only in October 2025 when the trust’s auditor enquired about the application status with the office of the Commissioner of Income Tax (Exemptions). Upon learning that the application had been rejected on 03.03.2025, the trustee checked the portal and discovered the order. The employee concerned was later terminated for failing to report the update. Following legal advice, the trust filed an appeal before the Tribunal on 07.11.2025 along with a petition for condonation of delay. After reviewing the reasons provided, the Tribunal held that sufficient cause existed and condoned the delay.
