KESHAB UMA CHARITABLE TRUST,GANGADHARPUR V. CIT (EXEMPTIONS), KOLKATA, KOLKATA

ITA 2640/KOL/2024

AI Insights

The case involves the Keshab Uma Charitable Trust appealing against the decision of the CIT (Exemptions), which had rejected their application for registration under Section 12A(1)(ac)(iii) of the Income-tax Act, 1961. The rejection was initially due to the trust's failure to respond to a questionnaire issued by the CIT (Exemptions). The trust argued that they did not receive the communication due to changes in their email and office address. The tribunal, considering the circumstances and the principles of natural justice, decided to remand the case back to the CIT (Exemptions) for a fresh decision, allowing the trust to present their case and necessary documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708477 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S. B. CHAKRABORTY
• Assessee Lawyers: ASHIS RASTOGI
• Keywords: Opportunity of being heard; Principle of natural justice; Charitable institution
• Section: 12AA; 10B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH KOLKATA BEFORE SHRI DUVVURU RL REDDY, VICE PRESIDENT AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No.2640/KOL/2024 Keshab Uma Charitable Trust Village and P.O. Gangadharpur. Dist-Howrah, West Benga PIN-711302 (PAN: AABTK6300L) Vs. CIT (Exemptions) Income Tax office, 10B Middleton Road, Kolkata- 700071, West Bengal (Appellant) (Respondent) Present for: Appellant by : Shri Ashis Rastogi, AR Respondent by : Shri S.B. Chakraborty, DR Date of Hearing : 17.06.2025 Date of Pronouncement : 17.07.2025 O R D E R PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of CIT (Exemption) (hereinafter referred to as “the Ld. CIT(E)”) dated 25.09.2024. 02. The grounds of appeal raised by the assessee are reproduced as un- der: “The CIT (Exemptions) issued a Rejection Order of the provisional income tax exemption of the appellant Keshab Uma Charitable Trust under Section 12AA as the appellant failed to furnish reply to queries mentioned in the hearing notice. The appellant seeks leave to appeal against the Rejection Order on the grounds that the appellant was not granted sufficient time to comply with the queries and was not given any further opportunity of being heard before pass- ing the Rejection Order violating the Principles of Natural Justice.” 03. The brief facts of the case of the assessee are that the assessee had filed the application in Form No.10AB for registration u/s 12A(i)(ac)(iii) of the Income-tax Act, 1961 (the Act). A notice was issued by the Ld. CIT(E) Page | 2 ITA No. 2640/KOL/2024 Keshab Uma Charitable Trust but the assessee did not file any reply to the questionnaire issued by the Ld. CIT (E), as a result of which the application for registration u/s 12A(i)(ac)(iii) of the Act was rejected by the ld. CIT (E) in limine. 04. Being aggrieved with the order of Ld. CIT(E), the assessee has pre- ferred the appeal before us. 05. The Ld. AR has prayed that assessee may be given opportunity to place all the documents required for the registration before the ld. CIT (E) as the Ld. CIT(E) has passed the order not on merits but in limine and adequate opportunity of being heard had not been provided to the as- sessee. 06. The ld. DR did not raise any objection to this request. 07. Upon hearing the submissions of the respected parties, and after going through the order passed by the ld. CIT (E) we find that application for registration u/s 12A(1)(ac)(iii) of the Act was rejected in limine by the Ld. CIT (E) when the assessee failed to produce relevant documents and evidence. Before us the assessee has filed copy of Form No. 10AC dated 27.05.2021 granting provisional approval u/s 12A(1)(ac)(vi) and also un- dertakes that it will place all the relevant documents necessary for regis- tration before the Ld. CIT (E). It has been argued by the AR that the as- sessee had changed its e-mail address and the office address so the com- munications must have gone to the earlier e-mail which were not func- tional, hence no communications was received. 08. Keeping in view the submission made by the assessee and consid- ering the order passed by the Ld. CIT (E), we are inclined to restore the appeal of the assessee before the Ld. CIT (E) for fresh adjudication after Page | 3 ITA No. 2640/KOL/2024 Keshab Uma Charitable Trust affording reasonable opportunity of hearing to the assessee to place all the relevant documents. The assessee shall not seek unnecessary ad- journment and shall comply with the notices issued and furnish the in- formation sought for by the Ld. CIT(E). 09. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 17th July, 2025. Sd/- Sd/- (DUVVURU RL REDDY) (RAKESH MISHRA) (VICE PRESIDENT) (ACCOUNTANT MEMBER) Dated: 17th July, 2025 Sudip sarkar, Sr. P.S. Page | 4 ITA No. 2640/KOL/2024 Keshab Uma Charitable Trust Copy to: 1. The Appellant: 2. The Respondent. 3. CIT(A), NFAC, Delhi 4. The CIT, 5. DR, ITAT, //True Copy// BY ORDER, Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "