KHAJAN SITA PARMAKTHIK TRUST,INDORE V. CIT EXEMPTION , BHOPAL

ITA 58/IND/2025

AI Insights

The case involves the Khajan Sita Parmakthik Trust, which appealed against the decision of the Commissioner of Income-Tax (Exemption), Bhopal, who had rejected the Trust's application for final registration under section 12AB of the Income-tax Act, 1961, and cancelled its provisional registration. The primary reasons for the rejection were the lack of details regarding the Trust's charitable activities over the past three financial years and the absence of bank account statements for the same period, which were necessary to verify the application of income. The Trust, represented by its legal counsel, submitted additional evidence during the appeal, which led to the tribunal's decision to remand the case back to the CIT(E) for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772073 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEECARRIEDUSTOPARA; OFTHEIMPUGNEDORDER; FORREVENUEAGREESWITHTHEPRAYEROFLD.ARBUTMAKESA; SHRIRAGHUNATH
• Assessee Lawyers: SHRIASHISH GOYAL; N.D. PATWA; ARS
• Keywords: Corroborative evidences; Principle of natural justice

Judgement Text

"Page 1 of 3 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.58/Ind/2025 Khajan Sita Parmakthik Trust, 36, Jaora Compound Indore बनाम/ Vs. CIT (Exemption) Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN: AAATK8856A Assessee by Shri Ashish Goyal & N.D. Patwa, ARs Revenue by Shri Raghunath, CIT-DR Date of Hearing 25.08.2025 Date of Pronouncement 28.08.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order bearing DIN: ITBA/EXM/F/EXM45/2024- 25/1071559359(1) dated 25.12.2024 passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] by which the assessee’s application for grant of final registration u/s 12AB of Income-tax Act, 1961 has been rejected and the provisional registration u/s 12AB granted earlier has also been cancelled, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36). Printed from counselvise.com Khajan Sita Parmakthik Trust ITA No. 58/Ind/2025 Page 2 of 3 2. Ld. AR for assessee carried us to Para 3 & 4 of the impugned order and demonstrated that the Ld. CIT(E) has rejected assessee’s application for the reasons that (i) no details had been provided in respect of charitable activities done by assessee during last 3 financial years with supporting evidences, and (ii) the assessee has not filed bank accounts of last 3 financial years required for verification of application of income. Ld. AR next submitted that the assessee has filed an Application under Rule 29 of Income-tax (Appellate Tribunal) Rules, 1963 accompanied by a separate paper-book containing pages from 62 to 87 containing the evidences required by Ld. CIT(E). Therefore, in the interest of justice one more opportunity may be given to assessee represent its case before CIT(E). 3. Ld. DR for revenue agrees with the prayer of Ld. AR but makes a request to direct the assessee to represent his case before CIT(E) and do not seek unnecessary adjournments. 4. Considering above submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of CIT(E), we remand this matter back to the file of CIT(E) for adjudication afresh after examining of assessee’s evidences. We, however, make it clear that CIT(E) may raise any other query also as considered necessary. The CIT(E) shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by Printed from counselvise.com Khajan Sita Parmakthik Trust ITA No. 58/Ind/2025 Page 3 of 3 CIT(E) and do not seek unnecessary adjournments failing which the CIT(E) shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly. 5. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court on 28/08/2025 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 28/08/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "