Karnatak Goa Pradesh Maheshwari Sabha, Bijapur V. CIT(Exemption), Bengaluru

ITA 1/PAN/2021

AI Insights

The case involves the Karnataka Goa Pradesh Maheshwari Sabha, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Bangalore, rejecting their application for registration under section 12AA of the Income Tax Act, 1961. The primary issue was the non-submission of a registered amended Memorandum of Association (MoA), which was required to verify the trust's objectives and the genuineness of its activities. The Tribunal found that the assessee should be given another opportunity to submit the necessary documents and thus remanded the case back to the CIT (Exemptions) for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136854 (ITAT-PANAJI)
• Duration Of Justice: 2 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 17-03-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BADRINATH YAMAJI
• Keywords: Principle of natural justice; Set aside
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH :: PANAJI BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER & SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER (Through virtual hearing) ITA No.01/PAN/2021 Karnataka Goa Pradesh Maheshwari Sabha, Krishna Kaveri, K.C. Nagar, Solapur Road, Bijapur (Karnataka) PAN: AABAK 2999 L vs CIT (Exemptions), Bangalore. Appellant Respondent Assessee by : Pramod Vaidhya, Advocate Revenue by : Shri Badrinath Yamaji Chavan, DR Date of hearing : 17/08/2023 Date of pronouncement : 21/08/2023 O R D E R Per PARTHA SARATHI CHAUDHURY, JM: This appeal preferred by the assessee emanates from the order of Commissioner of Income Tax (Exemptions), Bangalore (for short, ‘CIT(E)’), dated 17.02.2022 as per the grounds of appeal on record. 2. The solitary grievance as evident from the grounds of appeal in the appeal memo filed by the assessee is the rejection of application for registration u/sec. 12AA of the Income Tax Act, 1961 (for short, ‘the Act’). 3. We observe from perusal of the order passed by the ld. CIT(E) ITA No.01/PAN/2021 Karnataka Goa Pradesh Maheshwari Sabha 2 that applicant-trust M/s.Karnataka Goa Pradesh Maheshwari Sabha had made an application in Form 10A for registration u/sec. 12AA of the Act before the Department. There were certain discrepancies detected during the process of this application and accordingly, the assessee-trust was asked to furnish various details as is enumerated in the order of ld.CIT(E). However, assessee-trust had failed to furnish registered amended Memorandum of Association (MoA). These details will enable the ld. CIT(E) to satisfy himself regarding the objects of the assessee-trust and the genuineness of its activities. Furthermore, whether assessee-trust is incompliance with the prevalent laws in force will also have to be verified. The only reason for rejection of application for registration by the Department was that assessee-trust had not filed these requisite details as called for by the office of ld. CIT(E). Therefore, in the interest of justice, we are of the considered view, one final opportunity should be given to the assessee-trust to file its relevant details specifically the registered amended MoA etc. before the ld.CIT(E) and in view thereof, we set aside the order of ld. CIT(E) and remand the matter back to his file for re-adjudication on merits as per law complying with the principles of natural justice and considering the various documents/evidences that would be furnished before him by the assessee-trust. The grounds of appeal of the assessee-trust are disposed off and allowed for statistical purposes. ITA No.01/PAN/2021 Karnataka Goa Pradesh Maheshwari Sabha 3 4. In the result, appeal of the assessee stands allowed for statistical purposes. Order pronounced in open Court on 21 st August, 2023. Sd/- Sd/- (INTURI RAMA RAO) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 21 st August, 2023 vr/- Copy to : 1. The Appellant. 2. The Respondent. 3. The Pr. CIT concerned. 5. The DR, ITAT, Panaji Bench, Panaji. 6. Guard File. By Order // TRUE COPY // Senior Private Secretary ITAT, Pune.