9911796707
TMI Blog2024 (9) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... funds under section 1A/12AB of Income Tax Act, 1961 ('the Act') in ITA No.442/SRT/2023 on 18.09.2020 and in ITA No.443/SRT/2023 on 29.11.2022 respectively. 2. At the outset of hearing, Ld. Authorized Representative (Ld.AR) for the assessee submits in both the appeal the assessee has sought same relief, thus, he has not pressing his appeal in ITA No.442/SRT/2023. Considering the submission of Ld.AR of the assessee, the appeal of assessee in ITA No.442/SRT/2023 is dismissed as "not pressed". 3. So far as appeal in ITA No.443/SRT/2023 is concerned, we find that there is delay of 146 days in filing appeal before Tribunal. The Ld. AR of the assessee submits that assessee has filed affidavit of one of the trustee, namely, Dara K Deboo. The Ld.A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal is considered on merit. The assessee should not be penalized due to the mistake of their previous CA firm. The Ld. AR for the assessee also prayer that technical consideration should not come in the way of justice. The assessee has filed detailed affidavit of one of the trustee of assessee-trust in explaining the delay. 4. On merits of the appeal, the Ld. AR of assessee submits that assessee-trust is a very old trust and was established in 1953 i.e., prior to coming of Income-tax Act, 1961 in force. The assessee is registered with Charity Commissioner as well as having registration under section 12A of the Income-tax Act (Act). By introduction of new Scheme of Registration of provisions under section 10(23)/12A/80G by way of Finance Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld.AR of the assessee submits that assessee has filed appeal in ITA No. 442/Srt/2023 against the order dated 18.09.2020. Since common relief in both the appeals, therefore, he has not pressed the ground of appeal raised in ITA No.442/SRT/2023. The Ld.AR of the assessee submits that there is no bar for applying afresh for registration under section 12AB. The Ld.AR of the assessee submitted that assessee was a trust set-up much prior to commencement of Income-tax Act, 1961. Thus, the embargo of provisions under section 13(1)(b) is not applicable against the assessee and the assessee-trust qualified for benefit of exemption provisions being a "charitable trust". To support his submissions, the ld. AR of the assessee relied upon the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust has given e-mail address of their earlier CA, namely, Thacker Butala Desai, who has not informed the assessee about rejection of their application. The Ld. AR of the assessee also argued that similar application of assessee was rejected earlier which was also not intimated to assessee. We find that in the ITBA portal, e-mail address is mentioned as "[email protected]". Considering the submissions of ld AR for the assessee that the assessee is an old charitable trust much indulging in charitable activities, and was dependent of the services of CA who was engaged for tax compliance and for registration under section 12A/12AB who had not informed the assessee in time to take resource of law for filing appeal. The Ld.AR for the assessee w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onation of delay in filing appeal before Tribunal and we condone the delay. Now adverting to merit of the case. 9. We find that Ld.CIT(E) rejected the second application of assessee for registration under section 12A/12AB on two counts - (i) on similar application was dismissed on 18.09.2020 and that the provisions of undersection 13(1)(b) are applicable in case of assessee. We find that against the rejection order dated 18.,09.2020, the assessee filed appeal in ITA No.442/SRT/2023, which we have dismissed as "not press" on the basis of statement of ld AR for the assessee. We further note that there is no bar in filing fresh application. So far as registration under section 12A/12AB are concerned while examining the application for registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income-tax Act, 1961, the embargo of Section 13(1)(b) has no application. However, we find that ld. CIT(E) before rejecting the application under section 12A/12AB has not examined the activities of the assessee-trust. Therefore, the matter is restored back to the file of Ld.CIT(E) to reconsider the application of assessee on merit and pass order in accordance with law. Needless to direct that before passing the order afresh, the Ld.CIT(E) shall grant reasonable opportunity of being heard to the assessee. The assessee is also given liberty to file written submission and evidence as and when called for. The ld CIT(E) is directed to consider all such evidences, if so filed by the assessee. The assessee is also further directed to be more vig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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