Genuine Delay in Producing 70 Year Old Trust Deed: ITAT quashes Rejection of S.12A & 80G Claims [Read Order]

The Income Tax Appellate Tribunal (ITAT), Cochin Bench, has set aside the rejection of applications under sections 12A and 80G of the Income Tax Act, 1961, citing that the default was procedural and not substantive as the appellant was unable to furnish a certified copy of its 70 year old trust deed within the stipulated time due to genuine and unavoidable delay.

The appellant, Quilon Poor Home is a trust registered in 1963 with the objective of rehabilitating the homeless and instituting welfare measures for underprivileged communities in Kollam.

The appellant was granted registration under section 12A of the Act and later received provisional registration under section 12A, which was valid for Assessment Years (AY) 2023–24 to 2025–26. On the same date, the trust was also granted provisional approval under section 80G, valid up to AY 2025–26.

The appellant filed applications for final registration under section 12A and approval under section 80G. During processing, the Commissioner of Income Tax (CIT) (Exemption) issued notices directing the assessee to file a certified copy of the original trust deed or registered bye-laws of the society.

However, the appellant could not submit the same within the stipulated time, as the documents dated back 70 years and required considerable time to retrieve a certified copy from the Registrar’s office.

Due to this non-submission, the CIT (Exemption) rejected both applications by order one under section 12A and the other under section 80G.

Before the Tribunal, the appellant submitted that the failure was not deliberate but occurred due to an unavoidable delay in procuring a historical document, and prayed for one more opportunity to submit the required documents so the applications could be considered afresh on merit.

The bench comprising Inturi Rama Rao (Accountant Member) and Sonjoy Sarma (Judicial Member), found that the rejection was due to procedural default, specifically non-furnishing of the certified trust deed, which the assessee now states is ready for submission.

In view of the procedural and not substantive default, and the interest of justice and fair play, the Tribunal restored the matter to the file of CIT (Exemption) for fresh consideration.

The appellant was represented by G. Surendranath Rao, while Suresh Sivanandan represented the respondent.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates