APPLEBY FOUNDATION,RAIPUR V. CIT EXEMPTION, BHOPAL

ITA 27/RPR/2025

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The case involves the Appleby Foundation appealing against the rejection of their applications for registration under Section 12AB and consequent exemption under Section 80G(5) of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemption), Bhopal had initially rejected these applications due to non-compliance by the assessee in providing requisite details and evidence to substantiate the genuineness of the trust's activities and objects. The tribunal, referencing a similar case (Sewaa Path Sanstha Vs. CIT(Exemption), Bhopal), decided to remand the matter back to the CIT(Exemption) for a thorough re-examination, providing the assessee a final opportunity to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 36591 (ITAT-RAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Other Referred Cases: Sewaa Path Sanstha Vs. CIT(Exemption), Bhopal, ITA No.74 & 75/RPR/2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S.L ANURAGI
• Assessee Lawyers: SAMIT GOEL; NITIN GOYAL; ADVOCATES
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Charitable institution
• Section: 80G

Judgement Text

"आयकर अपीलȣय अͬधकरण Ûयायपीठ रायपुर मɅ। IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR (Through Virtual Hearing) BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER आयकर अपील सं. / ITA Nos. 26 & 27/RPR/2025 Ǔनधा[रण वष[ / Assessment Years : 2025-26 Appleby Foundation 308, Wallfort Ozone, Fafadih, Raipur-492 001 (C.G) PAN : AAZCA1872C ........अपीलाथȸ / Appellant बनाम / V/s. The Commissioner of Income Tax (Exemption) Bhopal. ……Ĥ×यथȸ / Respondent Assessee by : S/shri Amit Goel & Nitin Goyal, Advocates Revenue by : Shri S.L Anuragi, CIT-DR सुनवाई कȧ तारȣख / Date of Hearing : 25.03.2025 घोषणा कȧ तारȣख / Date of Pronouncement : 26.03.2025 2 Appleby Foundation Vs. CIT(Exemption), Bhopal ITA Nos. 26 & 27/RPR/2025 आदेश / ORDER PER BENCH: The captioned appeals preferred by the assessee emanates from the respective orders passed by Commissioner of Income Tax (Exemption), Bhopal dated 14.11.2024, rejecting the applications of assessee filed in Form 10AB for granting registration u/s. 12AB and consequent exemption u/s. 80G(5) of the Act. 2. The grievance of the assessee in both these appeals is rejection of registration by the department u/s.12AB of the Income Tax Act, 1961 (for short ‘the Act’) and consequent rejection of exemption u/s.80G(5) of the Act. In this regard, it is noted from the order of the Ld.CIT(Exemption) that there was no compliance by the assessee and therefore, the satisfaction as required u/s.12AB of the Act for granting of registration i.e. genuineness of the activities of the trust and objects of the trust could not have been examined by the Ld. CIT(Exemption) and resultantly, the application for registration and consequently exemption u/s.80G of the Act were rejected. In this regard, the observation of the Ld.CIT(Exemption) is culled out as follows: 3 Appleby Foundation Vs. CIT(Exemption), Bhopal ITA Nos. 26 & 27/RPR/2025 3. At the time of hearing, the Ld. Counsel for the assessee submitted that it is evident from the order of the Ld. CIT(Exemption), the requisite details and evidences as per Section 12AB of the Act was not filed by the assessee before the Ld. CIT(Exemption), because of which, he denied the regular registration and corresponding exemption to the assessee society. It was submitted by the Ld. Counsel that one final opportunity may be provided to the assessee so that it can represent its case on merits. 4 Appleby Foundation Vs. CIT(Exemption), Bhopal ITA Nos. 26 & 27/RPR/2025 4. The Ld. Sr.DR has fairly conceded that the matter may be adjudicated denovo on merits before the first appellate authority providing one final opportunity to the assessee. 5. At this stage, we may herein observe that the issue involved in the present appeal is squarely covered by the decision of the ITAT, Division Bench, Raipur in the case of Sewaa Path Sanstha Vs. CIT(Exemption), Bhopal, ITA No.74 & 75/RPR/2025, dated 19.03.2025, wherein the Tribunal remanded the matter back to the file of the Ld.CIT (Exemption) observing as follows: “7. We have heard the submissions of both the parties and perused the documents on record and facts and circumstances of the case. We find that as per the records and the order of the Ld. CIT(E), the relevant documents justifying the objects and genuineness of the activities which are required to be complied with as per Section 12AB of the Act, had been duly complied with by the assessee society. We are of the view that the purpose of the provisions for registration of trust u/s. 12A/12AB and granting of recognition u/s. 80G of the Act, derives their spirit from Directive Principles of State Policy enshrined in the Constitution of India. The Govt. of India makes every endeavour to provide welfare to one and all in the society at large, and in view thereof the registration for public charitable trusts/societies are given in order to ensure that through these charitable trusts benefits flows to entire society, so that the Directive Principles of State Policy are achieved. These provisions of registration u/s. 12A/12AB and granting of recognition u/s.80G of the Act enhance socio-economic welfare of the society. The provisions for registration u/s. 12AB of the Act and granting of recognition u/s 80G of the Act are in consonance with the objectives of the Government that once registration is given to public charitable trusts/societies, they would be able to perform charitable activities within the target area and to raise grants for using the same in those charitable activities, and in fact, they would also be able to extend claim of exemption u/s. 80G of the Act to the doners in respect of 5 Appleby Foundation Vs. CIT(Exemption), Bhopal ITA Nos. 26 & 27/RPR/2025 those grants received. In entirety, these provisions enable the public charitable trust to do the charitable activities and enhance the objectives of the Government of India corresponding with the Directive Principles of State Policy enshrined in the Constitution of India. 8. Considering the entire parameters, we are of the view that if one final opportunity is provided to the assessee society to submit all the evidence/documents before the Ld. CIT(E), there could be no jeopardize caused to either of the parties. The Ld. CIT(E) ought to have come out with a speaking order after deliberating upon all the documents/evidence that would have been furnished by the assessee society before him to his satisfaction with regard to the objects and genuineness of the activities of the applicant/trust/society. In the present set of affairs, it is incumbent upon the Ld. CIT(E) as quasi-judicial authority to look into all the evidence furnished before coming to a conclusion with a speaking order. 9. In view thereof, the order of the Ld. CIT(E) is set-aside, and the matter is remanded to his file in terms of our aforesaid observations. As per the aforesaid terms the grounds of appeal raised by the assessee society stands allowed for statistical purposes. Needless to say, reasonable opportunity of being heard shall be provided to the assessee in the set aside proceedings. 10. In the result, appeal of the assessee society in ITA No.74/RPR/2025 is allowed for statistical purposes. ITA No.75/RPR/2025 Grounds of appeal: 1. Ld. Commissioner of Income Tax(Exemption) is not justified in rejecting application filed by appellant for registration u/s 80G(5) and in cancelling the provisional registration without appreciating the facts of the case properly. The rejection order passed by CIT(Exemption) is arbitrary, illegal and not justified. The appellant is entitled for registration. 2. The appellant reserves the right to amend, modify or add any of the ground/s of appeal. 11. As the appeal filed by the assessee society as regards the cancellation of provisional registration u/s.12AB of the Act and rejection of grant of registration u/s 12AB has been remanded to the file of the Ld. CIT(E), therefore, appeal pertaining to corresponding exemption u/s.80G of the Act is also remanded 6 Appleby Foundation Vs. CIT(Exemption), Bhopal ITA Nos. 26 & 27/RPR/2025 to his file with similar directions as were recorded by us in ITA No.74/RPR/2025. 12. In the result, appeal of the assessee society in ITA No.75/RPR/2025 is allowed for statistical purposes.” 6. Respectfully following the aforesaid order, we set-aside the respective orders of the Ld. CIT(Exemption) and remand the matter back to his file for denovo adjudication while complying with the principles of natural justice as per similar terms. At the same time, it is directed that this being the final opportunity, the assessee shall duly comply with the hearing notices from the Ld. CIT(Exemption). 7. As per the aforesaid terms, the grounds of appeal raised by the assessee stands allowed for statistical purposes. 8. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 26th March, 2025. Sd/- Sd/- ARUN KHODPIA PARTHA SARATHI CHAUDHURY (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) रायपुर/ RAIPUR ; Ǒदनांक / Dated : 26th March, 2025. SB, Sr. PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ /The Appellant. 2. Ĥ×यथȸ /The Respondent. 3. The CIT(Appeals)-1, Raipur (C.G.) 7 Appleby Foundation Vs. CIT(Exemption), Bhopal ITA Nos. 26 & 27/RPR/2025 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, रायपुर बɅच, रायपुर / DR, ITAT, Raipur Bench, Raipur. 5. गाड[ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलȣय अͬधकरण, रायपुर / ITAT, Raipur. "