Liberal condonation of delay and scrutiny of trust activities led to remand for merits consideration.

A delay of 1902 days in filing an appeal against refusal of registration under section 12AA was held to merit condonation because the explanation was bona fide and a pragmatic, liberal approach was required to advance substantial justice over technical objections. The Tribunal's additional finding that the assessee was not carrying on activities in accordance with the trust objects was also found unsustainable, as the record showed the children's home functioning under registration under the Juvenile Justice (Care and Protection of Children) Act, 2015. The Tribunal's order was set aside and the matter remitted for decision on merits.

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Issues: (i) Whether the delay of 1902 days in filing the appeal against refusal of registration under section 12AA deserved condonation; (ii) whether the Tribunal was justified in rejecting the appeal on the further ground that the assessee was not carrying on activities in accordance with the objects of the trust deed.

Issue (i): Whether the delay of 1902 days in filing the appeal against refusal of registration under section 12AA deserved condonation.

Analysis: The explanation for delay was that the assessee had entrusted the matter to a professional and came to know later that an appeal lay under section 253(1)(c) of the Income-tax Act, 1961. The Court held that delay of this nature must be assessed with a pragmatic and liberal approach, and that substantial justice should not be defeated by a technical view. The explanation was treated as genuine in the facts of the case.

Conclusion: The delay ought to have been condoned.

Issue (ii): Whether the Tribunal was justified in rejecting the appeal on the further ground that the assessee was not carrying on activities in accordance with the objects of the trust deed.

Analysis: The assessee showed that its children's home was functioning under registration granted by the authorities under the Juvenile Justice (Care and Protection of Children) Act, 2015, including section 41. On that footing, the Court found no material support for the Tribunal's adverse finding on the genuineness of the institution's activities.

Conclusion: The Tribunal's additional finding was unsustainable.

Final Conclusion: The order of the Tribunal was set aside and the matter was remitted for decision on merits.

Ratio Decidendi: Delay in filing an appeal should be condoned where the explanation is bona fide and a liberal, pragmatic approach is required to advance substantial justice over technical objections.

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