Case Law Details
Gurudwara Sahib Shaheed Baba Deep Singhji Trust Vs CIT (Exemption) (ITAT Ahmedabad)
The Income Tax Appellate Tribunal, Ahmedabad condoned a delay of 66 days in filing an appeal and restored the matter relating to registration under Section 12AB of the Income Tax Act, 1961, after finding sufficient cause for the delay. The appeal arose from an ex parte order dated 17.07.2025 passed by the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting the trust’s application for regular registration under Section 12A(1)(ac)(iii).
The assessee trust explained the delay through a notarized affidavit, stating that it had earlier been granted provisional registration under Section 12AB and had applied for regular registration in Form 10AB, which was rejected by the impugned order. It was further submitted that the trust had no prior experience with income-tax litigation and was not conversant with the income-tax e-filing portal, which led to the delay in filing the appeal.
The Department opposed unconditional condonation, pointing out that two opportunities had already been granted by the Commissioner (Exemption), and sought imposition of costs if the matter were to be remanded. After considering the rival submissions and material on record, the Tribunal accepted the explanation offered by the trust and held that the delay deserved to be condoned, subject to payment of costs.
Accordingly, the Tribunal imposed a cost of ₹5,000 payable by the assessee to the Income Tax Department within two weeks from receipt of the order and condoned the delay of 66 days. It directed that upon production of proof of payment of costs, the Commissioner (Exemption) shall grant one more opportunity of hearing to the assessee and decide the application for registration afresh in accordance with law. The appeal was thus allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal is filed by the Assessee as against exparte order dated 17.07.2025 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
2. The Grounds of Appeal raised by the assessee are as follows:
(1) That on facts, and in law, the learned CIT(Exemption) has grievously erred in not granting sufficient and reasonable opportunity of hearing and in rejecting the application for registration u/s 12A(1)(ac)(iii) of the Act, vide ex-parte order.
(2) That on facts and in law, the application made u/s 12A(1)(ac)(iii) ought to have been granted by learned CIT(Exemption) as prayed for.
(3) The appellant craves liberty to add, alter, amend any ground of appeal.
3. The registry has noted that there is a delay of 66 days in filing the above appeal. The assessee Trust filed a Notarized Affidavit explaining that the Trust is granted provisional registration u/s. 12AB of the Act and applied for regular registration in Form 10AB which was rejected by the present impugned order. Further, the assessee trust had never faced income tax litigation in the past and not conversant with online portal e-filing. This has resulted in a delay of 66 days in fling the above appeal. Therefore requested to condone the delay.
4. CIT-DR appearing for the Revenue submitted that this appeal is against the regular registration application filed by the assessee wherein two opportunities given by Ld. CIT(E). Hence for the delay, appropriate cost be levied on the assessee Trust for setting-aside the matter back to the file of Ld. CIT(E).
5. We have heard rival submissions and considered the materials available on record and we hereby impose a cost of Rs.5,000/-payable by the assessee to the Income Tax Department within two weeks of receipt of copy of this order and thereby the delay of 66 days is hereby condoned.
6. On production of cost payment challan by the assessee Trust to Ld. CIT(E), we direct the Ld. CIT(E) to give one more opportunity of hearing to the assessee and decide the matter in accordance with the provisions of law.
7. In the result, the appeal filed by the Assessee is treated as allowed for statistical purpose.
Order pronounced in the open court on 29 -01-2026
Author Bio
