Shri Salasar Satsang Pariwar, Belgavi V. Commissioner of Income Tax (Exemption), Bangaluru

ITA 282/PAN/2019

AI Insights

The case involves Shree Salasar Satsang Pariwar, which appealed against the order of the Commissioner of Income Tax (Exemptions), Bengaluru, denying their application for recognition under section 80G(5)(vi) of the Income Tax Act, 1961. The initial rejection was based on the absence of noticeable charitable activities from the date of the trust's formation. The Tribunal noted that the CIT(E)'s order was non-speaking and did not adequately address the merits of the case, leading to the decision to remand the matter back for a detailed examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 112851 (ITAT-PANAJI)
• Duration Of Justice: 3 year(s) 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Next Hearing Date: 13-07-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 05-11-2019
• Other Referred Cases: Self Employers Institution Vs CIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G; 12AA

Judgement Text

1 ITA.No.282/PAN./2019 IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH : PANAJI [THROUGH VIRTUAL HEARING] BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA.No.282/PAN./2019 Assessment Year 2018-2019 Shree Salasar Satsang Pariwar, Shop No.9, CTS No.774, Shivkamal Complex, Sonal Galli Corner, Vadgaon, Belagavi – 590 005 Karnataka PAN AASTS9884L vs., The Commissioner of Income Tax (Exemptions), 6 th Floor, Unity Building Annex, P. Kalinga Rao Road, Bengaluru. PIN – 560 027. (Appellant) (Respondent) For Assessee : Shri Pramod Y Vaidya For Revenue : Shri N. Shrikanth Date of Hearing : 14.07.2023 Date of Pronouncement : 18.07.2023 ORDER PER SATBEER SINGH GODARA, J.M. : This assessee’s appeal for assessment year 2018- 2019, arise against the CIT(E), Bengaluru’s Order F.No.66/CIT(E)/BLR/80G/TRO(E)/19-20, dated 27.09.2019, involving proceedings u/s. 80G(5)(vi) of the Income Tax Act, 1961 (in short “the Act”). Heard both the parties. Case file perused. 2. Coming to the assessee’s sole substantive grievance seeking sec.80G(5) registration, we note that the CIT(E), 2 ITA.No.282/PAN./2019 Bengaluru has not passed his totally non-speaking order which reads as under : “In this case the trust had applied for grant of recognition u/s 80G of the Income Tax Act of 1961 on 29/03/2019. The details submitted are verified. As verified from the documents and financials submitted, there are no noticeable charitable activities as on date from the date of formation of trust. Hence, in the absence of no noticeable charitable activities, the genuineness of the charitable activity could not be examined to decide to grant recognition u/s 80G of the I T Act. Hence, there is no option but to reject the application for grant of recognition u/s 80G (5)(vi) of the JT Act 1961, as not eligible. In this connection reliance is placed on the following Decisions:- 2. Hon'ble Kerala High Court in the case of Self Employers Institution Vs CIT reported in 247 ITR 18 has held that where there is no material before the Commissioner to be satisfied of the genuineness of the activities of the trust is a valid reason for rejection. Accordingly, the application for recognition u/s 80G (5) (vi) of the Income Tax Act 1961 is hereby rejected. 3 ITA.No.282/PAN./2019 3. Learned counsel representing assessee inter alia has filed before us CIT(E) order(s) itself granting 12AA registration dated 21.12.2018, dated 15.03.2022 allowing sec.12AB relief as well as sec.80G registration dated 28.10.2022 as well. His case therefore, is that the assessee’s impugned substantive grievance is restricted only to the intervening period which has been claimed vide corresponding application dated 29.03.2019 filed before the CIT(E). 4. Faced with this situation and in light of the fact that the CIT(E) impugned order is totally a non-speaking one, we deem it appropriate to restore the assessee’s instant substantive grievance back to him in larger interest of justice for his afresh appropriate adjudication as per law, preferably within three effective opportunities of hearing. Ordered accordingly. 5. This assessee’s appeal is allowed for statistical purposes in above terms. Order pronounced in the Open Court on 18.07.2023. Sd/- Sd/- (INTURI RAMA RAO) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 18 th July, 2023 VBP/- 4 ITA.No.282/PAN./2019 Copy of the Order is forwarded to: 1. The Appellant; 2. The Respondent; 3. The CCIT, Bengaluru 4. The DR ITAT, Panaji Bench, Panaji. 5. Guard File //By Order// // True Copy // Senior Private Secretary : ITAT Pune Benches : Pune