JANA SEVA SAMRUDDI EDUCATION AND RURAL DEVELOPMENT SOCIETY R ,BANGALORE V. INCOME TAX OFFICER, WARD-7(2)(5), BANGALORE

ITA 312/BANG/2025

AI Insights

The case involves Jana Seva Samruddi Education and Rural Development Society, a public charitable trust, which appealed against the order of the CIT(A) for not condoning the delay of 861 days in filing an appeal. The trust had filed a return of income declaring nil income and claimed application of income for charitable purposes, which was denied by the CPC, raising a demand of Rs.15,08,582. The CIT(A) dismissed the appeal due to the delay, relying on various judgments. The Tribunal considered the affidavit filed by the assessee and the facts of the case, deciding to remit the issue back to the CIT(A) for fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712404 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: REVENUE; GANESH R. GHALE; STANDING COUNSEL REVENUE
• Assessee Lawyers: G. SHIVA KUMAR
• Keywords: Opportunity of being heard; Reasonable cause; Principle of natural justice; Charitable institution
• Section: 12AA

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K, JUDICIAL MEMBER ITA No.312/Bang/2025 Assessment Year : 2021-22 Jana Seva Samruddi Education and Rural Development Society, No.26/34, 50 Feet Road, T G Layout, KathriguppeS.O Bangalore South, Bangalore – 560 085. PAN : AABTJ 7431 M Vs. ITO, Ward – 7(2)(5), Bangalore. APPELLANT RESPONDENT Assessee by : Shri. G. Shiva Kumar, CA Revenue by : Shri.Ganesh R. Ghale, Advocate, Standing Counsel for Revenue. Date of hearing : 16.07.2025 Date of Pronouncement : 29.07.2025 O R D E R Per Laxmi Prasad Sahu, Accountant Member : This is an appeal filed by the assessee against CIT(A)’s order videDIN & Notice No: ITBA/APL/S/250/2024- 25/1073132685(1) dated 11.02.2025 for not condoning the delay of 861 days. 2. Briefly stated the facts of the case are that the assessee filed return of income on 31.12.2021 declaring Nil income. Assessee is a public charitable trust having registration under section 12AA of the Act vide No.CIT(Exemptions) Bangalore 12AA/2018-19/A/10403 dated 18.09.2018. The assessee filed return of income claiming application of income for charitable purposes for the objects of the Trust as claimed by the assessee and the CPC while processing the return Printed from counselvise.com ITA No.312/Bang/2025 Page 2 of 3 raised a demand of Rs.15,08,582/-. The return was processed on 23.10.2022 and entire application of income was denied to the assessee. The reason for delay in filing the appeal before the CIT(A) was explained in affidavit. The CIT(A) issued notice of hearing on 2 occasions i.e., on 01.02.2025 and 04.02.2025. Assessee filed an affidavit stating the reason for delay in filing the appeal which was not accepted by the CIT(A) and after relying on various judgments, he dismissed the appeal of the assessee. 3. Aggrieved form the above Order, assessee filed appeal before the Tribunal. The learned AR relied on the affidavit filed before the CIT(A) and hit has also filed an affidavit dated 16.07.2025 in which the reason for delay in filing the appeal has been stated before the CIT(A). 4. The learned AR further submitted that due to oversight while filing ITR, the registration under section 12AA of the Act could not be filled, the lapse was not deliberate or intentional. The clerical error be ignored and the public charitable status may be granted to the assessee in the interest of natural justice. The assessee has registration certificate under section 12AA of the Act dated 18.09.2018 issued by the Income Tax Department, the same is lying with the Income Tax Department and requested that one more opportunity may be granted to the assessee. 5. The learned DR relied on the Order of the lower authorities and objected for condoning the delay. He further submitted that the assessee must be aware about the income tax proceedings and there is no reasonable cause as mentioned in the affidavit by the assessee. 6. Considering the rival submissions, we noted that from the facts stated in Form No.35 that the assessee did not mention registration number under section 12AA of the Act granted to the assessee dated 18.09.2018 and while filing ITR 7, Printed from counselvise.com ITA No.312/Bang/2025 Page 3 of 3 the CPC has denied the entire application of income as claimed by the assessee and processed the return on 23.08.2022 raising demand of Rs.15,08,582/-. Considering the affidavit filed by the assessee and the facts of the case and in the interest of justice, we are remitting this issue back to the file of the jurisdictional CIT(A) for fresh consideration and decide the issue as per law after giving reasonable opportunity of being heard to the assessee and assessee is directed to file requisite documents for substantiating its case and not to take unnecessary adjournments for early disposal of the case. In case of failure, no second leniency shall be granted to the assessee. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Pronounced in the open court on the date mentioned on the caption page. Sd/ Sd/- Sd/- (SOUNDARARAJAN K) (LAXMI PRASAD SAHU) Judicial Member Accountant Member- Bangalore. Dated: 29.07.2025. /NS/* Copy to: 1. Appellants 2. Respondent 3. DRP 4. CIT 5. CIT(A) 6. DR,ITAT, Bangalore. 7. Guard file By order Assistant Registrar, ITAT, Bangalore. Printed from counselvise.com "