Sankatmochan Jan Kalyan Seva Samiti Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi has provided Sankatmochan Jan Kalyan Seva Samiti a fresh opportunity to secure registration under Section 12A of the Income Tax Act, 1961, by remanding its application back to the Commissioner of Income Tax (Exemptions) (CIT(E)).
The Samiti’s appeal, filed against the CIT(E)’s rejection of its Section 12A application, faced an initial hurdle due to a significant delay of 719 days. The assessee attributed this delay to the ill health of its managing person and sought condonation. The ITAT, citing the Supreme Court’s judgment in Collector, Land Acquisition vs. Mst. Katiji (167 ITR 471 (SC)), acknowledged that a reasonable cause for delay should not prevent a litigant from having their case heard on its merits, provided there is no mala fide intent or dilatory strategy. Consequently, the ITAT condoned the delay and admitted the appeal for adjudication.
The original rejection by the CIT(E) stemmed from the Samiti’s failure to respond to notices requesting specific information. The assessee’s representative argued that the non-compliance was also due to the managing person’s ill health and requested another chance to furnish the details.
Considering the circumstances and in the interest of justice, the ITAT set aside the CIT(E)’s order. The case has been remitted back to the CIT(E) with directions to re-evaluate the application after providing the Samiti a reasonable opportunity to submit all necessary details and evidence in support of its Section 12A registration request. The appeal was partly allowed for statistical purposes.
