EKI COMMUNITY DEVELOPMENT FOUNDATION,INDORE V. CIT(E), BHOPAL, BHOPAL

ITA 553/IND/2025

AI Insights

The case involves the Eki Community Development Foundation, which appealed against the decision of the Commissioner of Income-Tax (Exemption), Bhopal, rejecting their application for final registration under section 12AB of the Income-tax Act, 1961. The rejection was primarily due to the assessee's non-compliance with notices requesting details/documents. The assessee argued that the non-compliance was due to the negligence of their director and submitted an affidavit explaining the circumstances. The tribunal decided to restore the case to the CIT(E) for a fresh consideration, emphasizing the need for substantial justice and allowing the assessee another opportunity to comply with the requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822540 (ITAT-INDORE)
• Duration Of Justice: 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 26-06-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEEDREWOUR; FORASSESSEEITERATEDTHEAVERMENTSMADEINABOVEAFFIDAVIT; FORREVENUESUBMITTEDTHATTHECIT E ISSUED; FORASSESSEEANDRESTORETHISCASEATTHELEVELOF; SHRIANUPSINGH
• Assessee Lawyers: RUCHIRA SINGHAL

Judgement Text

"Page 1 of 7 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.553/Ind/2025 Eki Community Development Foundation, Plot 48, Scheme 78, Part-II, Vijay Nagar Indore बनाम/ Vs. CIT(Exemption) Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN: AAHCE6066C Assessee by Ms. Ruchira Singhal, AR Revenue by Shri Anup Singh, Sr. DR Date of Hearing 04.12.2025 Date of Pronouncement 22.12.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: This appeal relating is filed by assessee against order bearing DIN: ITBA/EXM/F/EXM45/2025-26/1075893347(1) dated 30.04.2025 passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] by which the assessee’s application for grant of final registration u/s 12AB of Income-tax Act, 1961 [“the act”] has been rejected. The assessee has raised the grounds as mentioned in Appeal Memos (Form No. 36). Printed from counselvise.com Eki Community Development Foundation ITA No.553/Ind/2025 Page 2 of 7 2. We have heard learned Representatives of both sides and carefully perused the case record. 3. At first, we re-produce the impugned order passed by Ld. CIT(E): Printed from counselvise.com Eki Community Development Foundation ITA No.553/Ind/2025 Page 3 of 7 4. Thus, the Ld. CIT(E) has rejected assessee’s application for the reason of non-compliances of notices issued and thereby non-furnishing of details/documents called for by CIT(E). Ld. AR for assessee drew our attention to the following affidavit filed by assessee explaining the reasons of non-compliances before CIT(E): Printed from counselvise.com Eki Community Development Foundation ITA No.553/Ind/2025 Page 4 of 7 Printed from counselvise.com Eki Community Development Foundation ITA No.553/Ind/2025 Page 5 of 7 5. The Ld. AR for assessee iterated the averments made in above affidavit and submitted that the non-compliances before CIT(E) had occurred due to negligence of Shri Sukanta Das, Director of assessee. He also supported the facts mentioned in affidavit with reference to the documents filed before bench in the shape of Form No. 10AB filed by Shri Sukanta Das and the document downloaded from Ministry of Corporate Affairs showing the date Printed from counselvise.com Eki Community Development Foundation ITA No.553/Ind/2025 Page 6 of 7 of appointment and date of resignation of Shri Sukanta Das from directorship of assessee. Ultimately, he requested that the assessee is ready and willing to represent its case for full satisfaction of CIT(E). Therefore, in the interest of justice one more opportunity must be given to assessee and this matter needs to be restored back at the level of CIT(E) for consideration afresh. 6. Replying to same, Ld. DR for revenue submitted that the CIT(E) issued three notices and asked assessee to submit details/documents but the assessee did not furnish required details/documents and it was a failure of assessee. He submitted that the CIT(E) has a limited time to pass order within 6 months and had no option except to reject assessee’s application when the assessee did not file the details/documents for satisfaction of CIT(E). He submitted that the CIT(E)’s order is perfect in the situation and must be upheld. 7. We have considered rival submissions of both sides and carefully perused the impugned order as well as the documents held in Paper-Book filed. After a careful consideration, we find that there is a sufficient reasoning explained by assessee in above affidavit due to which non- compliances occurred during proceedings set up by CIT(E). Further, the assessee is ready to make full submissions for the satisfaction of CIT(E). Therefore, in order to grant substantial justice to assessee, we agree to the request made by Ld. AR for assessee and restore this case at the level of CIT(E) for adjudication afresh. Needless to mention that the CIT(E) shall give Printed from counselvise.com Eki Community Development Foundation ITA No.553/Ind/2025 Page 7 of 7 necessary opportunity to assessee and the assessee shall avail those opportunities and that the CIT(E) shall pass order judiciously without being influenced by his earlier order in any manner. 8. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court on 22/12/2025 Sd/- Sd/- (PARESH M JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 22/12/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COP Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "