Earth Charitable Foundation Vs CIT Exemption (ITAT Pune)
12AB Registration Can’t Be Cancelled for Procedural Lapses Alone: ITAT Pune Condones 124-Day Delay & Restores Matter to CIT(E)
Pune ITAT condoned a delay of 124 days in filing the appeal and set aside the order of the CIT(E) rejecting the Trust’s application for registration u/s 12A(1)(ac)(iii) and cancelling its provisional registration.
The Tribunal noted that the delay occurred due to bona fide reasons, including confusion arising from multiple applications filed in Form 10AB and rejection of one application due to an inadvertent error in code selection, compounded by non-receipt of notices sent to an inactive email ID. Relying on the Supreme Court decisions in Collector, Land Acquisition vs. Mst. Katiji and Inder Singh vs. State of MP (2025 LiveLaw (SC) 339), the ITAT held that substantial justice should prevail over technicalities and condoned the delay.
On merits, the CIT(E) had rejected the application solely on the ground of non-compliance with notices and absence of supporting documents, concluding that genuineness of activities could not be verified. The Tribunal observed that the non-compliance was not intentional and that the Assessee had sought an opportunity to substantiate its case with proper documentary evidence.
Considering the totality of facts, the ITAT held that rejection and cancellation of provisional registration without granting an effective opportunity was unjustified. Accordingly, the impugned order was set aside and the matter was restored to the file of the CIT(E) with a direction to grant one more opportunity to the Assessee to file all requisite details and decide the application afresh in accordance with law. The appeal was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT PUNE
