12A Registration Denial Set Aside: ITAT Chandigarh Condones 424-Day Delay

Sarvhitkari Adhyatmik Kendra Vs CIT (Exemptions) (ITAT Chandigarh)

The Chandigarh Bench of the Income Tax Appellate Tribunal considered an appeal against rejection of an application seeking registration under section 12A(1)(ac)(iii) of the Income-tax Act, 1961. The registration was denied by the Commissioner of Income Tax (Exemptions), Chandigarh, on the ground that the assessee had furnished only partial details as required, leading to rejection of the application. The assessee filed an appeal with a delay of 424 days, attributing the delay to a lapse on the part of its counsel and supported the request for condonation with an affidavit from the secretary of the trust.

The assessee submitted that it was now in a position to substantiate its claim if provided another opportunity of hearing. The Department opposed interference with the impugned order. After considering the submissions, the Tribunal condoned the delay, emphasizing principles of natural justice. It restored the matter to the file of the Commissioner (Exemptions) for fresh consideration and directed the assessee to plead and prove its case without delay. The appeal was allowed for statistical purposes by the Income Tax Appellate Tribunal Chandigarh.

FULL TEXT OF THE ORDER OF ITAT CHANDIGARH

Aforesaid appeal by assessee arises out of an order of Ld. Commissioner of Income Tax (Exemptions), Chandigarh [CIT(E)] dated 26-03-2024 rejecting registration application as filed by the assessee seeking registration u/s 12A(1)(ac)(iii). Upon perusal of para-3 of the impugned order, it could be seen that the application has been rejected since the assessee filed only partial details as required which led Ld. CIT(E) to deny the registration. Aggrieved the assessee is in further appeal before us.

2. The registry has noted delay of 424 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of condonation petition which is accompanied by an affidavit of secretary of assessee-trust. Apparently, the delay has occurred due to lapse on the part of assessee’s counsel. The Ld. AR prayed for condonation of delay and also stated that the assessee is in a position to substantiate its application, in case another opportunity of hearing is granted to the assessee. The Ld. CIT-DR opposed any interference in the impugned order.

3. Keeping in mind the principles of natural justice as well as the background of the assessee, we admit the appeal and restore the issue of registration back to the file of Ld. CIT(E) for fresh consideration with a direction to the assessee to plead and prove its case forthwith.

4. The appeal stand allowed for statistical purposes.

Order pronounced on 22^nd December, 2025.