GEETA NIKETAN VIDYA MANDIR SAMITI,KURUKSHETRA V. CIT EXEMPTION, CHANDIGARH

ITA 175/CHANDI/2025

AI Insights

The case involves Geeta Niketan Vidya Mandir Samiti, an educational trust, appealing against the decision of the Commissioner of Income Tax (Exemptions), Chandigarh, which rejected their application for registration under section 12AB of the Income Tax Act, 1961. The initial rejection was due to the trust's failure to respond to multiple notices seeking clarification on the genuineness of its activities and compliance with the trust deed. The tribunal noted that despite the non-compliance, the CIT(E) had not considered the merits of the case in their decision, leading to the remand of the case for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706859 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 03-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MEENAKSHI VOHRA
• Assessee Lawyers: KAUSHAL CHOPRA
• Keywords: Condonation of delay; Principle of natural justice
• Section: 12A

Judgement Text

"आयकर अपीलȣय अͬधकरण, चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘A’, CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 175/CHD/2025 Ǔनधा[रण वष[ / Assessment Year : 2025-26 Geeta Niketan Vidya Mandir Samiti, Mohan Nagar, Kurukshetra- 136118 बनाम Vs. The CIT, Exemption, Chandigarh èथायी लेखा सं./ PAN NO: AABTG0672R अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent ( HYBRID MODE ) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Sh. Kaushal Chopra, CA for Shri Sudhir Sehgal, Advocate राजèव कȧ ओर से/ Revenue by : Smt. Meenakshi Vohra, CIT, DR (Virtual) सुनवाई कȧ तारȣख/Date of Hearing : 03.07.2025 उदघोषणा कȧ तारȣख/Date of Pronouncement : 07. 07.2025 आदेश/Order Per Krinwant Sahay, AM : Appeal in this case has been filed by the assessee against the order dated 26.11.2024 passed by the Ld. Commissioner of Income Tax (Exemptions), Chandigarh [ herein referred to as ‘CIT(E)’]. 2. Registry has pointed out that there is a delay of three days in filing of this appeal. The ld. Counsel for the 175-Chd-2054 Geeta Niketan Vidya Mandir Samiti, Kurukshetra 2 Assessee has filed an application for condonation of delay which is reproduced as under: 175-Chd-2054 Geeta Niketan Vidya Mandir Samiti, Kurukshetra 3 3. We have considered the reasoning given in the application dated 14.02.2025 and we are inclined to condone the delay. 4. The ld. DR did not have any objection for this condonation of delay. 5. Brief facts of the case as per the order of the ld. CIT(E) are that an application for registration u/s 12A(1)(ac)(iii) of the Act was filed by the applicant on 14.06.2024. On scrutiny of the above, it was found that the documents provided by the applicant are not sufficient for assessing the genuineness of the activities of the trust. It also could not be verified from the available documents whether the applicant is complying with the objects mentioned in the trust deed or not. 6. In order to examine and verify whether the activities of the trust or the institution are in accordance with its objects, the genuineness of its activities and compliance with such requirements of any other law for the time being in force as are material for the purpose of achieving its objects, a questionnaire was issued electronically on 175-Chd-2054 Geeta Niketan Vidya Mandir Samiti, Kurukshetra 4 07.10.2024. Further, ld. CIT(E) has given a finding as under: - “3.1 On the stipulated date i.e. 22.10.2024 in response to the notice, the applicant has neither furnished any reply nor sought any adjournment. Another letter granting necessary opportunity was issued to the applicant on 05.11.2024 and the matter was fixed for reply by 12.11.2024. In response to the above notice, the applicant has neither furnished any reply nor sought any adjournment. Another letter granting final opportunity was issued to the applicant on 14.11.2024 and the matter was fixed for reply by 20.11.2024. In response to the above notices, again the applicant has neither furnished any reply nor sought any adjournment. 7. Accordingly, as there was no compliance made by the Assessee, the Ld. CIT(E) rejected the application filed by the applicant for registration u/s 12AB of the Income Tax Act, 1961 (in short 'the Act'). During proceedings before us, ld. Counsel for the Assessee submitted that although the Assessee did not comply with the various notices issued by the CIT(E) but as a matter of fact all relevant documents were already uploaded on the e-portal of the Income Tax Department. The Counsel further requested 175-Chd-2054 Geeta Niketan Vidya Mandir Samiti, Kurukshetra 5 the Bench that the ld. CIT(E) has rejected the application for registration u/s 12AB of the Act without giving any finding on merit, therefore, the case may be remanded back to the CIT(E) for deciding the matter afresh taking into consideration all the relevant documents. 8. Per Contra, the Ld. DR argued that although the Assessee did not comply with the various notices issued by the CIT(E) still then he had no objection if the Bench remands back this matter to the CIT(E) 9. We have considered the arguments of the ld. Counsel for the Assessee as well as that of the ld. DR. We have also gone through the order passed by the ld. CIT(E). we find that the Ld. CIT(E) has not given any findings on merit, therefore, keeping in view the element of natural justice, we are of the view that the matter should be remanded back for deciding the application for registration of the Assessee u/s 12A afresh, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(E). All pleas 175-Chd-2054 Geeta Niketan Vidya Mandir Samiti, Kurukshetra 6 available under the law shall remain so available to the assessee. Ordered accordingly. 10. In the result, for statistical purposes, the appeal is treated as allowed. Order pronounced on 07-07-2025. Sd/- Sd/- ( RAJPAL YADAV ) ( KRINWANT SAHAY) Vice President Accountant Member “आर.क े.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar "