Nidhivan Foundation Bangan Ka Nangla Vs CIT-Exemption (ITAT Jaipur)
The Income Tax Appellate Tribunal (ITAT) Jaipur has remanded the case of Nidhivan Foundation Bangan Ka Nangla back to the Commissioner of Income Tax (Exemptions) [CIT(E)] for reconsideration. The foundation had appealed against the rejection of its application for registration under Section 12AB and 80G of the Income Tax Act, 1961. The primary reasons cited for rejection were the foundation’s non-registration under the Rajasthan Public Trust Act, benefit to interested persons, and alleged non-genuineness of activities. However, the tribunal noted that these issues were curable and directed CIT(E) to give the assessee another opportunity to present its case.
The tribunal also condoned a one-day delay in filing the appeal, referencing the Supreme Court ruling in Collector, Land Acquisition v. Mst. Katiji & Others (167 ITR 471), which advocates a liberal approach in condonation of delay cases. The assessee had argued that the delay occurred due to an inadvertent mistake by an accountant, a justification that was accepted by the tribunal. The tribunal noted that the delay was neither intentional nor would it grant any undue advantage to the assessee, reinforcing the principle that procedural lapses should not override substantive justice.
Regarding the rejection of Section 12AB registration, the foundation provided evidence that it had obtained registration under the Rajasthan Public Trust Act after its application was initially rejected. The tribunal observed that this was a curable defect. Additionally, the assessee filed an affidavit clarifying that a disputed invoice, allegedly dated March 20, 2024, was a clerical error, and the actual date should have been March 20, 2023. The tribunal accepted this explanation and found merit in allowing the assessee another opportunity to present its case.
