ITAT Condones 224-Day Delay: Remands Modi Charitable Trust’s 12A & 80G Applications Over Unfamiliarity with E-Notices [Read Order]

The Ahmedabad Benchof the Income Tax Appellate Tribunal (ITAT) in its recent ruling condoned a delay of 224 days in filing appeals and remanded back the matter upon being certain that the appellant was unfamiliar with income tax proceedings and did not regularly check the e-filing portal or emails due to lack of prior litigation experience.

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The appellant Modi Charitable Trust, had filed two appeals against the orders passed by the Commissioner of Income Tax (Exemption) ( CIT(E) ), whereby the CIT(E) had rejected the applications of the assessee-trust for final/regular approval under sections 12A and 80G of the Income Tax Act, 1961.

The appeals were instituted before the tribunal with a delay of 224 days in and, to explain the cause of delay, the appellant filed an affidavit sworn by Suketu Modi, a trustee of the assessee trust which was common to both the appeals and contained identical submissions.

It was explained that the assessee being unfamiliar with income-tax proceedings did not regularly check the income-tax e-filing portal, as it had not previously been involved in any income-tax litigation. This subsequently resulted in the assessee’s non-representation and the passing of the ex parte order.

It was further stated that the assessee only recently became aware of the rejection of its applications under section 80G(5)(iv) and section 12A of the Income Tax Act, 1961. Upon learning of the rejection, the appellant consulted their Chartered Accountant, who advised an appeal before this tribunal.

Thereby the delay in filing the appeal was thus submitted by the appellant to have occurred due to bona fide reasons and unavoidable circumstances.

The bench comprising Sanjay Garg (Judicial Member) and Annapurna Gupta (Accountant Member) found the explanation given by the appellant to be reasonable and bona fide.

It was held that the cause for delay was not found to be deliberate or with any mala fide intent. Therefore, in the interest of justice and to render substantial justice the delay of 224 days in filing the appeals was condoned.

Thereby, ITAT set aside the orders of the CIT(E) and both matters were remanded for fresh adjudication before CIT(E) while advising that the assessee be provided due opportunity of hearing prior to the passing of any decision.

Accordingly, the appeal was allowed.

The appellant was represented by Anal Vora, while the Department was represented by Rignesh Das.

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