Registration u/s 12AA of the Income Tax Act, 1961

This case involves an appeal by the Rural Education Advancement Trust in Pune against the Commissioner of Income Tax (Exemption) for rejecting their application for registration under Section 12AA of the Income Tax Act, 1961. The trust argued that the CIT erred in deeming their activities not genuine and in not providing sufficient opportunity to submit information. The Tribunal condoned a 83-day delay in filing the appeal, acknowledging the challenges posed by the pandemic.

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE
(Through Virtual Court)

BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER
AND
SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER

ITA No. 31/PUN/2021

Rural Education Advancement Trust,
1102, Reat Indradhanu Society,
Near Vanaz Company,
Kothrud, Pune-411 038
PAN : AADTR6658J
Appellant

V/s.

The Commissioner of Income Tax (Exemption)
Pune.
Respondent

Assessee by : Shri Kishore Phadke
Revenue by : Shri Deepak Garg

Date of Hearing : 03.06.2021
Date of Pronouncement : 14.06.2021

ORDER

PER PARTHA SARATHI CHAUDHURY, JM:

This appeal preferred by the assessee emanates from the order of the Ld. CIT(Exemption) dated 26.09.2020 passed u/s.12AA(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟) as per the following grounds of appeal on record :

“1. The learned CIT, Exemption, Pune erred in law and on facts in not granting registration u/s.12AA of the ITA, 1961 to appellant on the analogy that genuineness of the activities of the appellant is not satisfactory.

2. The learned CIT, Exemption, Pune erred in law and on facts in not granting sufficient opportunity to the appellant to submit all the requisite details/information.

3. The appellant craves to add, alter, clarify, explain, modify, delete any of the grounds of appeal and seek any just and fair relief.”

2. In this case, there is delay of 83 days in filing of the appeal before the Tribunal. The Ld. Counsel for the assessee had filed an affidavit as well as petition for condonation of delay of 83 days. That on perusal of the reasons enshrined in these documents it is found that the delay was caused because of circumstances which cannot be attributed to any deliberate conduct of the assessee neither it can be said that the delay was caused by the assessee with mala-fide intentions. The Ld. DR also conceded to these facts and did not raise any objection for the condonation of delay. After hearing the parties, we therefore, condone the delay and proceed to hear this appeal on merits. We further take note on the present pandemic situation where the movement of people are restricted and because of such practical situation, it is always not possible to follow the time of limitation regarding filing of appeal before various Forums. This fact was also observed and taken cognizance of by the Hon‟ble Supreme Court of India, in Civil Original Jurisdiction, Suo Moto Writ Petition (Civil) No.3 of 2020 dated 8th March, 2021.

3. At the very outset, the Ld. Counsel for the assessee submitted that in this case the sole grievance of the assessee is the rejection of the application for granting registration u/s.12AA of the Act by the Ld. CIT(Exemption) on the ground that the genuineness of the activities of the assessee were not established. 

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