2025 (9) TMI 21

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....s noticed from the appeal record that there is a delay of 90 days in filing the appeal before the Tribunal. Explaining the reasons for belated filing of the appeal, the Ld. AR drew our attention to the affidavit filed by the assessee along with a petition seeking for condonation of delay and read out the contents of the petition which is as under: - "1. It is respectfully submitted that the orders of the Commissioner of Income-tax, (Exemption), Hyderabad dated 05.11.2024. 2. The order is received on 05.11.2024 through online. So, the appeal should have been filed on or before 04.01.2025. 3. The appeal before this Hon'ble Tribunal was filed on 04.04.2025 which is filed beyond the period of limitation. The delay is of 90 days. ....

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....der section 12A(1)(ac)(iii) of the Act to produce the copy of Memorandum of Association/Trust Deed for verification and to furnish a detailed reply on the specific information called for in the said notice. In response, assessee has submitted some of the details as called for. Ld.CIT(E) noticed from the submissions made by the assessee that Centralized Processing Centre, Bangalore (in short "CPC") has issued the Form 10AC dated 08.02.2022 by granting the registration u/s. 12(A)(ac)(i) of the Act for a period of 5 years commencing from A.Y.2022-23 to A.Y.2026-27, though the assessee was not holding existing registration under section 12A issued by the department on or before 31.03.2021, and the assessee should have applied the Form 10A by op....

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.... consequential cancellation of earlier registration is grossly disproportionate, especially given the bona fide conduct and compliance history of the appellant. 4. The Commissioner failed to exercise powers to rectify an apparent mistake, even though the Income-tax Act allows for rectification of such mistakes. 5. The appellant had a legitimate expectation of continued registration, and the cancellation has severely hampered the functioning of a bona fide charitable institution. 6. The impugned order contradicts CBDT circulars and judicial precedents which uphold that procedural lapses should not defeat substantive rights. 7. The rejection and cancellation severely harm the public interest served by the charitable work of the ap....

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.... application due to incorrect quoting of provisions. 9. We have heard rival contentions and perused the material available on record. Assessee filed Form 10AB seeking registration under section 12AB of the Act. The only basis for rejection by the Ld.CIT(E) is the assessee quoted section "12A(1)(ac)(vi)" instead of "12A(1)(ac)(i)" while filing Form 10A. This being a mere technical or procedural lapse, and the substance of the application cannot be disregarded solely on such ground. It is also a well settled principle that procedural mistake should not defeat substantial rights especially in cases involving registration of charitable institutions which otherwise meet the conditions stipulated under the Act. The Hon'ble Supreme Court in the c....