Assessee's Appeal Granted on Delay & Exemption Issues, Tribunal Emphasizes Fair Hearing

The appeal filed by the assessee was allowed regarding the issues of condonation of delay in filing the appeal before the CIT(A) and eligibility for exemption under section 11 of the Income Tax Act. The Tribunal's decision was based on its earlier order setting aside the cancellation of registration under section 12AA, which was upheld by the High Court. The Tribunal directed the matter back to the AO for reconsideration, emphasizing the need for a fair hearing and lawful decision-making in determining the assessee's eligibility for exemption under section 11.

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Issues:
1. Condonation of delay in filing the appeal before the CIT(A)
2. Eligibility for exemption under section 11 of the Income Tax Act

Condonation of Delay in Filing the Appeal:
The appeal was filed by the assessee against the order of the CIT(A) for Assessment Year 2011-12. The grounds raised by the assessee included opposition to the CIT(A)'s order, error in confirming the assessment order, rejection of the application for condonation of delay, and failure to appreciate written submissions. The CIT(A) rejected the application for condonation of delay but proceeded to decide the issue on merit, implying that the delay might have been condoned. The Tribunal noted this and did not delve further into the delay issue.

Eligibility for Exemption under Section 11:
The AO had rejected the assessee's claim for exemption under section 11 of the IT Act due to the cancellation of registration under section 12AA. However, the Tribunal had set aside the order cancelling registration, which was upheld by the High Court. As a result, the Tribunal directed the matter back to the AO to decide on the assessee's eligibility for exemption under section 11. The Tribunal emphasized that the AO should provide a fair opportunity for the assessee to be heard and make a decision in accordance with the law. The Tribunal did not comment on the actual allowability of exemption under section 11 but ordered the matter to be reconsidered by the AO.

In conclusion, the appeal filed by the assessee was allowed concerning the issues of condonation of delay and eligibility for exemption under section 11. The Tribunal's decision was based on the Tribunal's earlier order setting aside the cancellation of registration under section 12AA and the subsequent confirmation of this decision by the High Court. The Tribunal emphasized the importance of a fair hearing and lawful decision-making by the AO in determining the assessee's eligibility for exemption under section 11 of the IT Act.

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