Swa Savitribai Bhikalal Agrawal Memorial Trust Vs CIT (Exemptions) (ITAT Pune)
Wrong Professional Advice Excuses 900-Day Delay: ITAT Pune Revives 12AB & 80G Applications
Pune ITAT ‘B’ Bench, in Swa Savitribai Bhikalal Agrawal Memorial Trust vs. CIT (Exemptions), Pune (ITA Nos.1575 & 1576/PUN/2025, order dated 23.12.2025), condoned an extraordinary delay of 897 & 904 days and set aside the rejection of regular registration u/s 12AB and approval u/s 80G, remanding the matter to the CIT(E) for de-novo consideration.
The Trust was initially granted provisional registration u/s 12AB and 80G in September 2021. It timely filed Form 10AB in April 2022 for regular registration. The CIT(E), however, rejected the applications on 27.10.2022, citing lack of credible evidence on genuineness of activities and, consequentially, denied 80G approval.
Instead of filing an appeal, the Trust—acting on incorrect professional advice—surrendered the provisional registration and reapplied afresh, believing it would cure the defect. Only later, upon obtaining correct advice, did the Trust realise that the proper remedy was an appeal before ITAT, leading to the long delay.
Accepting the detailed affidavit and chronology, the Tribunal held that the delay was bona fide, unintentional and occasioned by wrong professional guidance, relying on SC rulings in Collector, Land Acquisition vs. Mst. Katiji and Inder Singh (2025).
On merits, the ITAT found that the CIT(E) had afforded inadequate opportunity, issuing the second notice on 20.10.2022 with compliance due by 25.10.2022, which fell short of a reasonable opportunity. Citing Patna HC in St. Paul’s Anglo Indian Education Society, the Bench held that opportunity must be real and effective, not illusory.
Accordingly, the ITAT set aside both impugned orders and remanded the applications to the CIT(E) with directions to grant reasonable opportunity and examine all evidences afresh. Both appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
