CHITTARAGI SHRI VIJAY MAHANTEH EDUCATION SOCIETY ,BAGALKOT V. COMMISSIONER OF INCOME TAX, (EXEMPTIONS), BANGALORE

ITA 2589/BANG/2024

AI Insights

The case involves M/s. Chittaragi Shri Vijay Mahantesh Education Society, a charitable trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Bangalore. The CIT(E) had rejected the trust's application for registration under section 12AB due to non-compliance with notices issued during the winter holidays when the trust's office was closed. The tribunal found that the non-appearance of the trust was not willful and directed the CIT(E) to reconsider the application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471057 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL KUMAR AGARWAL
• Assessee Lawyers: RAJEEV CHANNAPPA NULVI
• Keywords: Set aside; Principle of natural justice; Charitable institution; Cancellation of registration

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K., JUDICIAL MEMBER ITA No. 2589/Bang/2024 Assessment Year : NA M/s. Chittaragi shri vijay Mahantesh Education Society, Near Kanthi Circle Ilkal, Taluk Hungund, Dist. Bagalkot, Karnataka – 587 125. PAN: AAATC8654N Vs. The Commissioner of Income Tax (Exemptions), Bangalore. APPELLANT RESPONDENT Assessee by : Shri Rajeev Channappa Nulvi, Advocate Revenue by : Shri Sunil Kumar Agarwal, CIT- DR Date of Hearing : 12-02-2025 Date of Pronouncement : 24-03-2025 ORDER PER SOUNDARARAJAN K., JUDICIAL MEMBER This is an appeal filed by the assessee challenging the order of the Ld.CIT(E), Bangalore dated 06/11/2024 in which the Ld.CIT(E) had rejected the application filed by the assessee in form 10AB for registration u/s. 12AB of the Act and raised the following grounds: “1. The order of the Hon'ble CIT(Exemption) for rejecting the application u/s 12AB is bad in law and against the Page 2 of 4 ITA No. 2589/Bang/2024 principle of natural justice, as sufficient opportunity has not been granted by the authority. 2. On the facts and circumstances of the case and in the provisions of the law, the Hon'ble CIT(Exemption) erred in ,rejecting the application for registration u/s 12AB, for non- complying to the notices which were issued within a period of 15 days, during which the Appellant/Trust (educational institution) was closed for winter holidays. Hence no reply was made to such notices. 3. On the facts and circumstances of the case and in the provisions of the law, the Hon'ble CIT(A) erred in rejecting the application for registration only for the reason of non- compliance to the notices issued for calling for information, and documents. But not for the reason of the non- genuineness of activities of the trust and activities conducted against the objects of the trust. 4. For these and other reasons which may be adduced at the time of the hearing, the Appellant/Trust prays before this Hon'ble Bench to set aside the order of the Hon'ble CIT(Exemption) passed for cancellation of registration and direct the said authority to reconsider the application for registration as per the law and to grant the registration u/s 12AB. 5. Appellant Craves Leaves to add, to alter, to amend or to delete any of the grounds at the time of the hearing.” 2. The brief facts of the case are that the assessee is a charitable trust and applied for registration u/s. 12AB in form 10AB of the Act. The Ld.CIT(E) had issued two notices for the appearance of the assessee but unfortunately the assessee had not responded and therefore the Ld.CIT(E) had rejected the application filed by the assessee. As against the said order, the assessee is in appeal before this Tribunal. 3. At the time of hearing, the assessee filed a paper book and also enclosed the written submissions and the provisional registration certificate in form 10AC and submitted that the assessee trust is running a school and because of the winter holidays, the trust office was closed and therefore the assessee trust was not able to appear before the Ld.CIT(E) and prayed an Page 3 of 4 ITA No. 2589/Bang/2024 another opportunity to appear before the Ld.CIT(E) with the necessary documents in support of the application filed by the assessee. 4. The Ld.DR relied on the order of the lower authorities and prayed to dismiss the appeal for the reason that the assessee had not responded to the two notices issued by the Ld.CIT(E). 5. We have heard the arguments of both sides and perused the materials available on record. 6. We have seen that the assessee was originally granted a provisional registration on 11/03/2022 for the period from Assessment Year 2022-23 to 2024-25. In order to get a permanent registration, the assessee filed an application in form 10AB. The Ld.CIT(E) had issued two notices on 27/09/2024 and 07/10/2024 but unfortunately the assessee trust was closed for winter holidays and therefore they were not in a position to attend the hearings. It is not the case of the revenue that the assessee had not followed any of the conditions in order to reject the application but the only reason for rejecting the said application is that the assessee had not appeared before the Ld.CIT(E). We have also perused the rejection order in which the Ld.CIT(E) had granted two opportunities one in the month of September and another in the month of October during which period the assessee trust office was not functioning because of the winter holidays. We are satisfied with the reasons stated by the assessee trust and convinced that the non-appearance of the assessee was neither wilful nor wanton. In such circumstances, after recording the submission made by the Ld.AR, we set aside the order of the Ld.CIT(E) and direct the Ld.CIT(E) to consider the application filed by the assessee in form 10AB of the Act on merits, after hearing the assessee and also after considering the various documents to be filed in support of their case. Page 4 of 4 ITA No. 2589/Bang/2024 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 24th March, 2025. Sd/- Sd/- (LAXMI PRASAD SAHU) (SOUNDARARAJAN K.) Accountant Member Judicial Member Bangalore, Dated, the 24th March, 2025. /MS / Copy to: 1. Appellant 2. Respondent 3. CIT 4. DR, ITAT, Bangalore 5. Guard file 6. CIT(A) By order Assistant Registrar, ITAT, Bangalore "