Rashtra Tej Manch Vs CIT(Exemptions) (ITAT Mumbai)
Summary: The appeal was filed by the assessee against the order of the Commissioner of Income Tax (Exemptions), Mumbai, rejecting its application for regular registration under Section 80G(5) of the Income-tax Act for Assessment Year 2025-26. The Commissioner rejected the application on the ground that it had been filed more than 17 months beyond the prescribed time limit after the expiry of the provisional approval.
The assessee submitted that the delay occurred due to an inadvertent mistake and a misconception that no separate application for regular registration under Section 80G was required because it already possessed permanent registration under Section 12A as well as provisional registration under Section 80G. The Department opposed the assessee’s contention.
The Tribunal observed that the assessee had been registered with the Exemption Department since 1996 and continued to hold a valid registration under Section 12A. It further noted that similar issues had already been considered by coordinate benches of the Tribunal. The Tribunal relied extensively on an earlier decision where delay in filing an application for regular registration under Section 80G was condoned after examining comparable facts and judicial precedents. The earlier decision held that the Tribunal, being the final fact-finding authority, could condone delay where sufficient cause was established and where refusal would cause undue hardship. It also observed that acceptance of a reasonable explanation should ordinarily prevail unless negligence or lack of bona fides was demonstrated.
