2025 (6) TMI 1384 - AT - Income Tax

Delay filing appeal before CIT(A) - reasonable cause for non-participation before the CIT(E) - HELD THAT - As submitted by assessee that the founder trustee was suffering from cancer and hence she could not tend to the trust matters. We find that the CIT(E) has decided the issue without appreciation of facts. We are of the considered view that the assessee has reasonable cause for not participating before the CIT(E). Thus we are of the considered view that the matter be restored back to the file of the ld. CIT(E) to decide the issues afresh after allowing adequate opportunity of being heard to the assessee.

Summary

The Appellate Tribunal (ITAT Delhi) heard an appeal against the order of the ld. CIT(E), New Delhi dated 12.12.2024 for A.Y. 2025-26, concerning rejection of registration under section 12A(1)ac(iii) of the Income-tax Act, 1961. The assessee's delay in filing the appeal was condoned due to the founder trustee's serious illness (cancer), which constituted a "reasonable cause" for non-participation before the CIT(E). The Tribunal held that the ld. CIT(E) had decided the issue "without appreciation of facts" and, in the interest of justice and fair play, restored the matter to the ld. CIT(E) for fresh adjudication after affording the assessee a reasonable opportunity of being heard. The assessee was directed to provide necessary information/documents. The appeal (ITA No. 1560/DEL/2025) was allowed for statistical purposes.