DAYAL EDUCATIONAL WELFARE SOCIETY,KANNAUJ V. COMMISSIONER OF INCOME TAX (EXEMPTION), LUCKNOW

ITA 791/LKW/2024

AI Insights

The case involves the Dayal Educational Welfare Society, which appealed against the decision of the CIT (Exemptions), Lucknow, who had rejected their application for registration under section 12AA of the Income Tax Act. The rejection was based on the grounds that the society failed to provide sufficient documentary evidence to prove the genuineness and commencement of its charitable activities. The Tribunal noted that the CIT (Exemptions) had not provided a reasonable opportunity for the assessee to furnish the required details and thus decided to set aside the CIT's order and remand the matter for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711720 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUNEET KUMAR
• Keywords: Set aside; Opportunity of being heard
• Section: 12AA

Judgement Text

"I.T.A. No.791/Lkw/2024 Assessment Year:N.A. 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘B’, LUCKNOW BEFORE SHRI SUBHASH MALGURIA, JUDICIAL MEMBER AND SHRI NIKHIL CHOUDHARY, ACCOUNTANT MEMBER I.T.A. No.791/Lkw/2024 Assessment Year:N.A. Dayal Educational Welfare Society, Mohan Market, Chhibramau, Kannauj-209 721 PAN:AABAD3939M Vs. CIT (Exemptions), Lucknow. (Appellant) (Respondent) O R D E R PER SUBHASH MALGURIA:J.M. This appeal vide I.T.A. No.791/Lkw/2024 has been filed by the assessee against the impugned order dated 28/10/2024 (DIN & Notice No.ITBA/EXM/F/EXM45/2024-25/1069983967(1) of CIT (Exemptions) passed under section 12AB(1)(ii)(B) of the Income Tax Act. 2. The facts of the case, in brief, are that an application for registration of the trust u/s 12AA of the I.T. Act was filed by the assessee on 03/04/2024 in Form No.10AB under Rule 17A of the I.T. Rules 1962. The learned CIT (Exemptions) issued a notice on 14/08/2024 to the assessee to submit a note on activities conducted since inception/during last three years and a note specifying the main area of charitable/religious activities and a projection/plan for the main Appellant by None Respondent by Shri Puneet Kumar, CIT (D.R.) Printed from counselvise.com I.T.A. No.791/Lkw/2024 Assessment Year:N.A. 2 charitable/religious activities to be undertaken in the next two years. In response to the said notice, the assessee filed part reply which was not accepted by the learned CIT (Exemptions). The learned CIT (Exemptions) rejected the application of the assessee for registration u/s 12AA of the Act on the ground that the assessee has failed to file documentary evidences to enable him to satisfy himself about the genuineness & commencement of its charitable activities. Aggrieved, the assessee is in appeal before the Income Tax Appellate Tribunal. 3. At the time of hearing before us, there was no representation from the assessee’s side. Learned CIT (D.R.) was heard and the materials available on record were perused. We noted from the order of learned CIT (Exemptions) that the learned CIT (Exemptions) rejected the assessee’s application u/s 12AA of the Act without providing reasonable opportunity for providing the details called for by the learned CIT (Exemptions) and therefore, the matter should go back to him for a fresh decision. Learned CIT (D.R.) supported the order of learned CIT Exemptions, Lucknow. In view of the foregoing and in the specific facts and circumstances of the present appeals before us; we set aside the impugned order of learned CIT (Exemptions) and restore the matter regarding the assessee’s applications u/s 12AA of the Act; back to his file with the direction to consider the application of the assessee for registration u/s 12AA of the Act afresh, and to pass de novo order after giving reasonable opportunity of being heard to the assessee. 4. In the result, the appeal of the assessee is allowed for statistical purposes. (Order pronounced in the open court on 23/07/2025) Sd/. Sd/. (NIKHIL CHOUDHARY) (SUBHASH MALGURIA) Accountant Member Judicial Member Dated:23/07/2025 *Singh Printed from counselvise.com I.T.A. No.791/Lkw/2024 Assessment Year:N.A. 3 Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Lucknow Printed from counselvise.com "