2025 (7) TMI 16

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....ndonation of delay along with an affidavit. We are satisfied with the explanation of the assessee that he was prevented by reasonable cause for not filing the present appeal within prescribed time limit. Ld. DR raised no serious objection to the condonation request made by the assessee. Accordingly, the delay of 110 days is condoned and the appeal is admitted for adjudication. 3. Facts of the case, in brief, are that the assessee is a trust applied for registration in Form 10AB u/s 12A(1)(ac)(iii) of the IT Act on 27.09.2023. With a view to verify the genuineness of the activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achievi....

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....ection 36A of the Maharashtra Public Trust Act, 1950 from the Charity Commissioner. 7.1 In reply, the assessee contended that it has taken loans from trustees and not from financial institutions or banks. As such, no permission was required to be taken from Charity Commissioner u/s 36A of the Maharashtra Public Trust Act. 1950. The contention of the assessee is duly considered. However, the same is not acceptable. Section 36A(3) of the MPT Act, 1950 provides that" no trustee shall borrow moneys (whether by way of mortgage or otherwise) for the purpose of or on behalf of the trust of which he is a trustee, except with the previous sanction of the Charity Commissioner, and subject to such conditions and limitations as may be imposed ....

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....of the loans were obtained prior to year 2019. Accordingly, it was prayed before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune with a direction to decide the application afresh after providing reasonable opportunity of hearing to the assessee. 6. Ld. DR appearing for the Revenue relied on the order passed by Ld. CIT, Exemption, Pune and requested to confirm the same. 7. We have heard Ld. Counsels from both the sides and perused the material available on record and also copy of case laws relied on by the assessee. We find that admittedly, the assessee trust was required to obtain permission from Charity Commissioner regarding loans but the same was not obtained timely. However, we also find that the assessee has a....