ANGARGARIA SRIJONI SIKSHA NIKETAN ,BIRBHUM V. CIT (EXEMPTIONS), , KOLKATA

ITA 387/KOL/2025

AI Insights

The case involves Angargaria Srijoni Siksha Niketan, a trust, appealing against the decision of the Commissioner of Income Tax (Exemptions), Kolkata, which denied them approval under section 80G(5)(iii) of the Income Tax Act, 1961. The Commissioner had questioned the genuineness of the trust's activities, specifically their microfinance services, and held that these were not charitable. The trust argued that their activities were indeed charitable and complied with all necessary regulations. The Tribunal found that the issue of whether microfinance constitutes a commercial activity or is part of the trust's charitable activities should have been addressed at the level of the Commissioner and thus remanded the case for further consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705701 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA SHRI GEORGE MATHAN, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 387/Kol/2025 Angargaria Srijoni Siksha Niketan, At Angargaria, PO- Kabilpur, Birbhu, Pin – 731132, West Bengal [PAN: AABTA5287A] ……..…...…………….... Appellant vs. The Commissioner of Income Tax, (Exemptions), Kolkata, 10B, Middleton Row (6th Floor), Kolkata - 700071 ................................ Respondent Appearances by: Assessee represented by : P.K. Ray, Ripan Chand Haldar Trideep Nayak ARs Department represented by : Raja Sengupta, CIT-DR Date of concluding the hearing : 18.06.2025 Date of pronouncing the order : 30.06.2025 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER 1. This appeal arises from an order passed by the Ld. Commissioner of Income Tax (Exemptions), Kolkata, dated 26.12.2024, u/s 80G(5) of the Income Tax Act, 1961 (hereafter “the Act”). 1.1 In this case, the Ld. CIT(E) has recorded that a notice was issued on 17.12.2024 to enquire from the assessee regarding the Micro Finance Services purportedly rendered by them. It is a matter of record that the assessee did not file any reply to the said notices. Thereafter, the Ld. CIT(E) has held that the genuineness of the activities of the trust could not be established and therefore, the approval u/s 80G(5)(iii) of the Act was denied. 2 ITA No. 387/Kol/2025 Angargaria Srijoni Siksha Niketan 1.2 Aggrieved with this action, the assessee is in appeal with the following grounds: “1) That the impugned Order of the Ld. Commissioner of Income Tax (Exemptions), Kolkata is arbitrary, illegal, contrary to the material on records and in excess of his jurisdiction while Issuing the Order 2) That the Rejection of Registration u/s 80G(5)(iii): The Ld. Commissioner of Income Tax (Exemptions), Kolkata erred in law and fact having not to grant the benefit for granting Permanente exemptions u/s 80G(5)(iii) of the Income Tax Act, 1961 of the Institution without any prejudice, merely quoting in the order that \"the genuineness of the activities of the trust is not established\" under the Income Tax Act Although, the Appellant complied necessary Rule 17A of Income Tax Rules, 1962 for application along with requisition documents for application and also complied the section 80G(5)(m) time to time for granting exemptions under section 80G(5) of the Income Tax Act, 1961 Therefore, your Appellant prays before the Hon'ble Members of the Appellate Tribunal for direction to grant Permanente exemptions u/s 80G(5)(iii) of the Income Tax Act, 1961 against decision made by the Ld. of Commissioner of Income Tax (Exemptions), Kolkata The Appellant craves the leave of the Hon'ble Members of Income Tax Appellate Tribunal to urge further ground(s) at the time of hearing and to produce the documents in support of its argument, if required.” 2. Before us, the Ld. AR pointed out, with the help of a detailed paper book, that the activities of the trust were genuine and there was no doubt about the charitable nature of such activities. He stated that micro finance was not a commercial activity but was intended to benefit the relatively poorer sections society. 2.1 The Ld. DR relied on the impugned order and stated that the assessee did not avail of the opportunity provided to him for presenting the facts before the Ld. CIT(E). 3. We have carefully considered the averments of Ld. AR/DR and have also gone through the records before us. We find that the issue of whether micro finance is a commercial activity or is very much part and parcel of the charitable activities of the trust, could have been thrashed out at the level of Ld. CIT(E). Accordingly, we set aside the impugned order and remand the same back to the Ld. CIT(E) for affording an opportunity to the assessee, who would be expected to present the full facts before him. 3 ITA No. 387/Kol/2025 Angargaria Srijoni Siksha Niketan 4. With these remarks, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 30.06.2025 Sd/- Sd/- (George Mathan) (Sanjay Awasthi) Judicial Member Accountant Member Dated: 30.06.2025 AK, Sr. P.S. Copy of the order forwarded to: 1. Indu Mohta L/H of Chhagan Lal Mohta 2. DCIT, Circle-61, Kolkata 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches "