Stellin Foundation Vs CIT(Exemption) (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT) Ahmedabad bench has granted the Stellin Foundation a second chance to present its case for registration under Sections 12AB and 80G(5) of the Income Tax Act, 1961. The tribunal set aside the earlier orders from the Commissioner of Income Tax (Exemption) [CIT(E)], which had denied the registrations, and remanded the matter for a fresh hearing.
The foundation had filed two appeals contesting the CIT(E)’s separate orders dated September 2 and 21, 2024. The appeals were delayed by 19 days, which the trust attributed to its accountant’s failure to check emails regularly. The foundation stated in a notarized affidavit that it only became aware of the rejection orders on November 13, 2024, after which it immediately hired an advocate to file the appeals. The trust pleaded that the delay was not intentional and undertook to furnish all required documents during the fresh hearing.
During the proceedings, the CIT-DR (Departmental Representative) did not object to the condonation of the delay or the proposal to send the matter back to the CIT(E).
After considering the submissions and the foundation’s undertaking, the ITAT found the reason for the delay to be satisfactory and condoned the 19-day delay in filing the appeals. The tribunal emphasized the importance of providing a fair opportunity for the trust to be heard. It set aside the ex-parte orders of the CIT(E) and directed the authority to conduct a new hearing. The ITAT explicitly instructed the trust to use this “final opportunity” to submit all necessary details to support its applications for registration.
