Madhya Pradesh Industrial Foundation Vs CIT (Exemption) (ITAT Indore)
The Income Tax Appellate Tribunal (ITAT), Indore Bench, considered two appeals filed by the assessee relating to rejection of applications for registration under Section 12AB and approval under Section 80G of the Income-tax Act, 1961. The appeals challenged two separate orders dated 12 September 2024 passed by the Commissioner of Income Tax (Exemption), Bhopal, through Form No. 10AD. By these orders, the Commissioner rejected the assessee’s applications submitted in Form No. 10AB for final registration under Section 12AB and final approval under Section 80G. The orders also cancelled the provisional registration under Section 12AB and provisional approval under Section 80G that had earlier been granted by the Central Processing Cell of the Income-tax Department.
Before addressing the merits of the case, the Tribunal examined the issue of delay in filing the appeals. The registry had reported that the appeals were time-barred. The assessee filed an affidavit seeking condonation of delay. The Tribunal considered the explanation provided in the affidavit and noted that the Departmental Representative had no objection to condoning the delay. Referring to Section 253(5) of the Income-tax Act, which allows the Tribunal to admit an appeal after the prescribed time if sufficient cause is shown, and relying on the Supreme Court decision in Collector, Land Acquisition v. Mst. Katiji, the Tribunal held that when substantial justice and technical considerations conflict, the cause of substantial justice should prevail. Accordingly, the Tribunal condoned the delay, admitted the appeals, and proceeded to hear the matter.
