Assessee's appeals allowed for statistical purposes after registration denial under sections 12/12AB and 80G for curable defects

ITAT Jodhpur allowed assessee's appeals for statistical purposes regarding denial of registration under sections 12/12AB and 80G. The CIT(E) had rejected applications as assessee was not registered under Rajasthan Public Trust Act, 1959. ITAT held the defects were curable since assessee had already applied for registration under the state Act. The Tribunal remanded both appeals to CIT(E) for fresh consideration, directing adequate opportunity be given to cure defects, noting that 80G approval cannot be granted without 12AB registration.

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Issues:
1. Delay in filing appeals for condonation.
2. Rejection of final registration under sections 12AB and 80G of the Income Tax Act, 1961.

Detailed Analysis:

Issue 1: Delay in filing appeals for condonation
The appeals in ITA No. 331 & 332/Jodh/2023 were delayed by 7 days. The assessee sought condonation of delay due to the receipt of a common order related to final registration under sections 12A/12AB and 80G after the Rakhi Festival. The assessee filed an affidavit supporting the condonation request. The assessee explained that the delay was unintentional due to festive and ceremonial obligations. The AR argued for a liberal approach citing judicial precedents, including a Supreme Court case. The DR opposed but left the decision to the court. The tribunal, considering the unintentional delay, condoned the 7-day delay.

Issue 2: Rejection of final registration under sections 12AB and 80G
The assessee's appeals challenged the rejection of final registration under sections 12AB and 80G of the Income Tax Act, 1961. The rejection was based on non-registration under the Rajasthan Public Trust Act and incomplete submission of required details. The AR contended that the reasons for rejection were curable, and the assessee had applied for registration under the Rajasthan Public Trust Act. The DR supported the CIT(E)'s orders, citing non-submission of necessary details. The tribunal observed that the reasons for rejection were curable and directed the assessee to provide the necessary information/documents to rectify the defects. It emphasized the need for the assessee to be given a fair chance to cure the deficiencies. The appeals were restored before the CIT(E) for fresh consideration, highlighting the interdependence of approval under section 80G on registration under section 12AB. The tribunal clarified that its decision did not reflect on the merits of the dispute, leaving the adjudication to the CIT(E) independently.

In conclusion, the appeals of the assessee in ITA No. 331/Jodh/2023 and ITA No. 332/Jodh/2023 were allowed for statistical purposes, with the matter restored to the file of the CIT(E) for reevaluation.

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