DEVINDRAPPAGOUDA GOUDAGERA FOUNDATION,YADGIR V. COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE

ITA 2398/BANG/2024

AI Insights

The case involves M/s. Devindrappagouda Goudagera Foundation, which appealed against the decision of the Commissioner of Income Tax (Exemptions) who had rejected their application for registration under section 12AB of the Income-tax Act, 1961. The rejection was based on the grounds that the foundation failed to submit necessary documents to establish the genuineness of its activities and compliance with laws essential for achieving the trust's objectives. The Tribunal found that the principles of natural justice were not followed as the documents submitted by the assessee were not adequately considered by the CIT (Exemptions).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 112198 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NANDINI DAS
• Assessee Lawyers: RAGHAVENDRA R
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 20

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No. 2398/Bang/2024 Assessment Year: 2025-26 M/s. Devindrappagouda Goudagera Foundation, Goudagera, Kembhavi Hobli Shorapur Yadgir – 585 816. Karnataka. PAN: AADTD7916M Vs. The Commissioner of Income Tax (Exemptions), Bangalore. APPELLANT RESPONDENT Assessee by : Shri Raghavendra R Chakravarthy, CA Revenue by : Smt. Nandini Das, CIT-DR Date of hearing : 22.01.2025 Date of Pronouncement : 16.04.2025 O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: This appeal has been filed by the assessee against the order passed by the Learned Commissioner of Income Tax (Exemption) dated 6th November 2024, whereby the application made under section 12AB of the Income-tax Act, 1961 for regular registration was rejected. 2. The assessee had filed an application in Form No. 10AB on 9th May 2024 seeking registration under section 12AB of the Act. The Learned CIT (Exemption) rejected the application on the grounds that the assessee failed to submit the necessary documents to establish the genuineness of its activities and compliance with other applicable laws essential for achieving the objectives of the trust. ITA No. 2398/Bang/2024 Page 2 of 3 . 3. Being aggrieved by the order of learned CIT exemption, the assessee is in appeal before us. 4. The learned AR before us filed up a paper book running from pages 1 to 62 and submitted that all requisite documents and explanations were duly filed before the ld. CIT (Exemption) through a letter dated 10th October 2024. A paper book containing relevant documents running from pages 1 to 62 was submitted before us, and attention was specifically drawn to pages 20 and 21, demonstrating the evidentiary supporting documents that were provided but not considered. It was thus argued that the rejection of the application was made without appreciating the materials placed on record. The ld. AR, therefore, requested that the matter be remanded to the ld. CIT (Exemption) for fresh adjudication after considering the submissions of the assessee and in accordance with law. 5. The Learned Departmental Representative (DR) submitted that he has no objection if the matter is restored to the file of the ld. CIT (Exemption) for reconsideration as per the provisions of law. 6. We have heard the rival contentions of both the parties and perused the materials available on record. It is evident that the principles of natural justice have not been adequately followed in the present case. The assessee appears to have submitted documents and explanations which were not properly considered by the ld. CIT (Exemption) while passing the impugned order. Thus, in the interest of justice/ fair-play, we are inclined to set aside the impugned order and restore the matter to the file of the ld. CIT (Exemption) for fresh adjudication. The ld. CIT (Exemption) shall examine the documents already submitted and consider any further explanations or evidence provided by the assessee and pass a speaking order in accordance with law after affording adequate opportunity of being heard to the assessee. Hence, the appeal filed by the assessee is allowed for statistical purposes. ITA No. 2398/Bang/2024 Page 3 of 3 . 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in court on 16th day of April, 2025 Sd/- Sd/- (KESHAV DUBEY) (WASEEM AHMED) Judicial Member Accountant Member Bangalore Dated, 16th April, 2025 / vms / Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore "