Alpha Charitable Trust Vs CIT (Exemption) (ITAT Mumbai)
Delay Condoned, 12AB Rejection Set Aside: ITAT Mumbai Grants Fresh Opportunity to Charitable Trust
The Mumbai ITAT “A” Bench condoned a delay of 656 days and allowed the appeal of Alpha Charitable Trust (ITA No. 455/Mum/2025), holding that substantial justice must prevail over technicalities, and restored the matter to the CIT(E) for fresh consideration of registration u/s 12AB after granting due opportunity
The Trust’s application for registration u/s 12AB was rejected ex parte by the CIT(E) on 30.12.2022 for alleged non-compliance and failure to establish genuineness of activities. The Trust filed appeal belatedly, explaining that it was newly incorporated (2021), unfamiliar with portal compliances, did not receive physical copy of the order, and came to know of rejection only later while checking registration status.
While noting that the explanation for delay was not fully convincing, the Tribunal took a lenient view, observing that the Trust would not gain by delaying the appeal and that there was no mala fide intent. Relying on settled principles laid down by the Supreme Court in Collector, Land Acquisition vs. Mst. Katiji and N. Balakrishnan vs. M. Krishnamurthy, the ITAT condoned the delay in the interest of justice.
On merits, the ITAT noted that the rejection was ex parte and the Trust had undertaken to furnish all requisite details relating to activities, trustees, and compliance with other laws. Accordingly, the Tribunal set aside the impugned order and remitted the matter back to the CIT(E) with a direction to consider the application afresh after providing proper opportunity of hearing.
The appeal was thus allowed for statistical purposes, reiterating that procedural lapses should not defeat genuine charitable claims without a fair hearing
FULL TEXT OF THE ORDER OF ITAT MUMBAI
