Shah Manilal Motilal Khadayta Vs CIT (Exemption) (ITAT Surat)
The Income Tax Appellate Tribunal (ITAT) in Surat has set aside an order from the Commissioner of Income-tax (Exemption) [CIT(E)] that had rejected a trust’s application for registration. The case involves Shah Manilal Motilal Khadayta Trust, whose application was dismissed by the CIT(E) due to non-compliance. The trust’s representative explained that the managing trustee had failed to regularly check the ITBA portal and their email, resulting in them missing the notices issued by the CIT(E).
The trust filed an appeal with the ITAT, but it was delayed by 52 days. The ITAT first addressed the condonation of this delay. The court accepted the trust’s explanation that the delay was not intentional but due to a genuine lapse in monitoring the online communication channels. The ITAT, therefore, condoned the delay in filing the appeal.
On the merits of the case, the ITAT noted that the CIT(E)’s order was made ex parte due to the trust’s failure to respond to the two notices. The tribunal emphasized the importance of the principles of natural justice, which require that a party be given a fair and sufficient opportunity to be heard. Given that the trust was willing to submit all necessary documents and present its case, the ITAT decided that a fresh opportunity was warranted. The tribunal set aside the CIT(E)’s order and remitted the matter back for a fresh adjudication.
