Delay Condoned Due to non-receipt of communication & Case Remanded for Fresh Hearing

Ell Aar Memorial Educational Trust Vs CIT (Exemption) (ITAT Chandigarh)

The appeal concerns a trust challenging an order dated 09.01.2023 issued by the CIT (Exemptions), Chandigarh, rejecting its application for final registration under section 12AB of the Income Tax Act, 1961. The Registry noted that the appeal was delayed by 111 days, for which the assessee sought condonation. The assessee explained that it is a registered charitable trust engaged in educational activities. It had applied for registration in Form 10AB on 12.07.2022. The CIT (Exemptions) issued notices on multiple dates through the e-filing portal, but the assessee stated that no email intimation was received. Due to unawareness of the notices, no compliance was made, resulting in an ex-parte rejection order on 09.01.2023. The assessee claimed it learned of the rejection only during assessment proceedings for AY 2023-24, where it was informed that it did not have valid 12AB registration.

The assessee further submitted that the delay in filing the appeal occurred because its earlier counsel could not provide proper guidance owing to the serious illness of his mother, who was undergoing chemotherapy. After obtaining a second opinion in August 2025, the assessee proceeded to file the present appeal.

The Departmental Representative opposed condonation of delay. The Tribunal examined the condonation application and found that the reasons furnished showed the assessee acted under a bona fide belief of holding valid registration and that non-compliance was not deliberate. The Tribunal held that circumstances explained constituted sufficient cause, and condoned the delay of 111 days, noting that substantial justice prevails over technicalities in terms of section 253(5).