Modi Charitable Trust Vs CIT (Exemption) (ITAT Ahmedabad)
Income Tax Appellate Tribunal (ITAT) Ahmedabad has condoned a 224-day delay in appeals filed by the Modi Charitable Trust, remanding its applications for final/regular approval under Sections 12A and 80G of the Income Tax Act, 1961. The decision, pronounced on June 16, 2025, addresses the trust’s contention of unfamiliarity with income tax proceedings and e-filing portals.
The Modi Charitable Trust had filed two appeals against separate orders issued by the Commissioner of Income-Tax (Exemption) (CIT(E)) on May 15 and May 16, 2024. These orders had rejected the trust’s applications for regular registration, which are essential for charitable organizations to obtain tax exemptions.
A significant point of contention at the outset was a 224-day delay in filing the appeals before the Tribunal. To explain this delay, Shri Suketu Modi, a Trustee of the assessee-trust, submitted an affidavit. The affidavit stated that the trust was “unfamiliar with income-tax proceedings” and had not previously been involved in any tax litigation, leading it to not regularly check the income-tax e-filing portal where notices for hearing were allegedly sent.
The affidavit further explained that the trust only recently became aware of the rejection of its applications. Upon this discovery, the trust immediately consulted its Chartered Accountant, who advised filing an appeal. The matter was then entrusted to their Advocate. The delay was attributed to these circumstances, described as “bona fide reasons and unavoidable circumstances,” with no deliberate or malicious intent.
