JAMIA ABU UBAIDA EDUCATIONAL AND WELFARE SOCIETY,ATMAKUR V. CIT (EXEMPTION), HYDERABAD

ITA 1230/HYD/2024

AI Insights

The case involves two appeals by the Jamia Abu Ubaida Educational and Welfare Society against the orders of the Commissioner of Income Tax (Exemption), Hyderabad, which rejected the society's applications for registration under Sections 12AB and 80G(5)(iii) of the Income Tax Act, 1961. The Tribunal found that the additional evidence provided by the assessee was crucial for a fair decision and directed the Commissioner to reconsider the applications in light of this new evidence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 36447 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B.BALAKRISHNA
• Assessee Lawyers: MOHAMMAD IRFAN SHAIK
• Keywords: Opportunity of being heard; Additional evidence; Principle of natural justice

Judgement Text

"आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ मɅ IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A”, HYDERABAD BEFORE SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER & SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आ.अपी.सं / ITA No. 1229 & 1230/Hyd/2024 (Ǔनधा[रण वष[ / Assessment Year:2024-25) Jamia Abu Ubaida Educational and Welfare Society, Atmakur. [PAN :AALAJ4526E] Vs. Commissioner of Income Tax (Exemption), Hyderabad. अपीलाथȸ / Appellant Ĥ× यथȸ / Respondent Ǔनधा[ǐरती ɮवारा/Assessee by: Shri Mohammad Irfan Shaik (Trustee cum Secretary) राजè व ɮवारा/Revenue by: Shri B. Bala Krishna, CIT-DR सुनवाई कȧ तारȣख/Date of hearing: 27/01/2025 घोषणा कȧ तारȣख/Pronouncement on: 03/02/2025 आदेश / ORDER PER K. NARASIMHA CHARY, J.M: Aggrieved by the orders dated 28/09/2024 passed by the learned Commissioner of Income Tax (ExempƟon)-Hyderabad (“learned CIT(ExempƟon)”), in the case of Jamia Abu Ubaida EducaƟonal and Welfare Society (“the assessee”), assessee preferred the capƟoned two appeals for the AY 2024-25. Since these appeals pertain to the same Page 2 of 6 assessee and the issues involved therein are inter-connected, these two appeals are clubbed, heard together and disposed of in this consolidated order. 2. Brief facts of the case in ITA No.1229/Hyd/2024 are that the assessee filed an applicaƟon in Form No. 10AB before the learned CIT (ExempƟon) seeking registraƟon U/s. 12AB of the Income Tax Act, 1961 (“the Act”). Accordingly, noƟces with respect to the proceedings U/s. 12A(1)(ac)(iii) of the Act were issued to the assessee and called for certain details / informaƟon along with Memorandum of AssociaƟon / Trust Deed for verificaƟon. In reply, the assessee submiƩed some informaƟon, which, according to the learned CIT (ExempƟon), is parƟal and therefore, the learned CIT(ExempƟon) asked the assessee to furnish full informaƟon vide noƟce dated 19/09/2024. In reply, the assessee furnished the informaƟon. 3. However, aŌer considering the submissions of the assessee, the learned CIT(ExempƟon) observed that the assessee submiƩed inadequate financial details to verify the genuineness of the acƟviƟes and expenditure of the assessee in line with the objecƟves of the Trust. Thus, learned CIT (ExempƟon) rejected the assessee’s applicaƟon in Form 10AB for registraƟon U/s. 12AB of the Act. Hence, the assessee is in appeal before us. 4. Mr. Mohammad Irfan Shaik, Trustee-cum-Secretary to the assessee appeared before us on behalf of the assessee and submiƩed that although the assessee has furnished the relevant documents / informaƟon as called for by the learned CIT(ExempƟon) while applying for Final RegistraƟon U/s. 12A(1)(ac)(iii) of the Act, learned CIT(ExempƟon) rejected the assessee’s applicaƟon by holding that the informaƟon furnished by the assessee is inadequate and parƟal informaƟon. Page 3 of 6 5. Before the Bench, he filed a paper book runs into 111 pages which is in the form of addiƟonal evidence in support of the assessee’s claim for grant of registraƟon U/s. 12AB of the Act. Therefore, he prayed that this addiƟonal evidence may be admiƩed and the assessee may be granted one more opportunity before the learned CIT(ExempƟon) to present its case. 6. Learned Departmental RepresentaƟve (“learned DR”) vehemently argued in support of the order of the learned CIT(ExempƟon) and opposed to the prayer of the assessee for remiƫng the maƩer to the file of the learned CIT(ExempƟon). 7. We have gone through the record in the light of the submissions made on either side. On perusal of the learned CIT(ExempƟon) order, we find that the assessee’s applicaƟon U/s. 10AB seeking registraƟon U/s. 12AB of the Act was rejected by the learned CIT(ExempƟon) by holding that the informaƟon furnished by the assessee is not sufficient to verify the genuineness of the acƟviƟes of the assessee-Trust. Before us, the assessee has filed certain informaƟon in the form of Paper Book in support of the assessee’s plea for registraƟon U/s. 12AB of the Act and on a perusal of the same, we find that the same consƟtutes addiƟonal evidence which may go to the root of the maƩer. 8. Section 254 of the Act read with Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 states about power to admit additional evidence, whether mere fact that evidence sought to be produced is vital and important, does not provide a substantial cause to allow its admission. The additional evidence submitted by the assessee at this stage, before us, is the first time and is necessary for deciding the appeal of the assessee. Even otherwise, all the documents so placed on record by the assessee by way of additional evidence before the ld. CIT(Exemption) are necessary to adjudicate the application filed by the assessee U/s. 10AB for registration U/s. 12AB of the Act. Moreover, in Page 4 of 6 case, the additional evidence so placed on record by the assessee is allowed then, no prejudice shall be caused to the Revenue. Whereas on the contrary, in case, the said additional evidence placed on record by the assessee is not considered then, in that eventuality the rights of the assessee shall be prejudiced. Therefore, in view of the substantial justice, we direct the ld. CIT(Exemption) to admit additional evidence so placed on record by the assessee. Further, we direct the learned CIT(Exemption) to decide the case afresh after considering those additional evidence and also after providing reasonable opportunity of being heard to the assessee as per the principles of natural justice. Thus, the grounds raised in ITA No. 1229/Hyd/2024 are answered accordingly. 9. With respect to ITA No.1230/Hyd/2024, we find that the core issue involved in this appeal is whether the learned CIT(Exemption) is correct in rejecting assessee’s application in Form No. 10AB seeking registration U/s. 80G(5)(iii) of the Act by holding that the information / details submitted by the assessee is inadequate to verify the genuineness of the activities and expenditure of the assessee. 10. In this regard, the assessee filed certain additional evidence for the first time before the Bench which may go to the root of the matter. Therefore, considering the identical facts and circumstances of the present case with that of the assessee’s appeal in ITA No. 1229/Hyd/2024, which is adjudicated in the foregoing paras of this order, our decision given therein (in ITA No. 1229/Hyd/2024) mutatis mutandis applies to the assessee’s appeal in ITA No. 1230/Hyd/2024 also. Accordingly, we admit the additional evidence submitted by the assessee and direct the learned CIT(Exemption) to decide the case afresh after considering the additional evidence and also after providing reasonable opportunity of being heard to the assessee as per the principles of natural justice. The grounds raised by the assessee in ITA No. 1230/Hyd/2024 are answered accordingly. Page 5 of 6 11. In the result, both the appeals filed by the assessee are allowed for statistical purposes as indicated herein above. Order pronounced in the open court on this the 03rd February, 2025. Sd/- Sd/- (MADHUSUDAN SAWDIA) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated:03/02/2025 OKK Page 6 of 6 Copy forwarded to: 1. Jamia Abu Ubaida EducaƟonal and Welfare Society, 164, Jamia Abu Ubaida, Khalla Veedhi, Atmakur, Nandyal District, Andhra Pradesh- 518422. 2. CIT (ExempƟon), Aayakar Bhawan, Opposite LB Stadium, Basheer Bagh, Hyderabad-500004. 3. Pr. CIT (ExempƟon), Hyderabad. 4. DR, ITAT, Hyderabad. 5. GUARD FILE. TRUE COPY ASSISTANT REGISTRAR ITAT, HYDERABAD "