KODAVAAME,BENGALURU V. CIT (EXEMPTIONS), BANGALORE

ITA 190/BANG/2025

AI Insights

The case involves appeals by Kodavaame, a trust based in Bangalore, against the orders of the CIT (Exemptions), Bengaluru, which cancelled the trust's registration under section 12AB and approval under section 80G of the Income Tax Act, 1961. The CIT (Exemptions) had cancelled the registration and approval due to the trust's non-responsiveness to notices and failure to provide necessary documents to prove the genuineness of its activities. The Tribunal found that the trust had indeed submitted some documents on the day the CIT (Exemptions) passed the order, and thus, remitted the matter back for a fresh decision, granting the trust another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633064 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SRINANDINI DAS
• Assessee Lawyers: MEGHANA BELAWADI
• Keywords: Opportunity of being heard
• Section: 80G

Judgement Text

"ITA Nos.190 & 191/Bang/2025 Kodavaame, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “A’’BENCH: BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA Nos.190 & 191/Bang/2025 Assessment Years : NA Kodavaame No.3 KHB Colony Koramangala Bangalore Karnataka 560 095 PAN NO : AADTK2168E Vs. CIT (Exemptions) Bengaluru APPELLANT RESPONDENT Appellant by : Ms. Meghana Belawadi, A.R. Respondent by : Ms. Srinandini Das, D.R. Date of Hearing : 25.03.2025 Date of Pronouncement : 09.06.2025 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: These appeals at the instance of the assessee are directed against the order of the ld. CIT(Exemptions) Bangalore both dated 3.12.2024 vide DIN & Notice No. ITBA/EXM/F/EXM45/2024- 25/1070851625(1) cancelling the registration u/s 12AB of the Income Tax Act, 1961 (in short “The Act”) and vide DIN & Notice No. ITBA/EXM/F/F/EXM45/2024-25/1070851784(1) cancelling the approval u/s 80G of the Act. Since the issue in both these appeals of the same assessee trust is common in nature, these are clubbed together, heard together and disposed of by this common order for the sake of convenience. ITA Nos.190 & 191/Bang/2025 Kodavaame, Bangalore Page 2 of 5 2. First, we take up ITA No.190/Bang/2025 for adjudication. In this appeal, the assessee has raised the following grounds of appeal:- 3. Brief facts of the case are that on receipt of application in form 10AB dated 29.6.2024 for the registration u/s 12AB of the Act, the ld. CIT(E) assigned the case to the JAO for verification. The JAO issued several letters/notices through official mail/post calling for the details/documents. However, the assessee was non- responsive. The ld. CIT(E) also observed that the assessee has not responded even before her till the date of passing of the order. Further the ld. CIT(E) observed that the assessee trust is required to submit the necessary documents to prove the genuineness of the activity of the trust and also the compliance of such requirement of any other law as are material for the purpose of achieving its object. The ld. CIT(E) is of the opinion that as the assessee has not responded to any of the notices issued and failed to appear and submit all the necessary documents/details as required for registration u/s 12AB of the Act and accordingly application in form ITA Nos.190 & 191/Bang/2025 Kodavaame, Bangalore Page 3 of 5 no.10AB dated 29.6.2024 filed for registration u/s 12AB of the Act was rejected and registration was cancelled. 4. Aggrieved by the order of ld. CIT(E) the assessee filed the present appeal before this Tribunal. 5. Before us, the ld. A.R. of the assessee submitted that the allegation as made by the ld. CIT(E) that the assessee had not responded at all is not true. The AR of the assessee further vehemently submitted that in fact the auditor of the assessee visited the office of the ld. CIT(E) and sought time till 3rd of December, 2024 to submit the required documents. It is also submitted that the assessee had in fact furnished/uploaded the required documents in parts thrice by way of partial response on 3rd of December, 2024 but surprisingly on the very same day the ld. CIT(E) passed the order cancelling the registration without considering the documents/details submitted by the assessee and accordingly prayed to grant one more opportunity before the ld. CIT(E). 6. Ld. D.R. on the other hand relied on the order of ld. CIT(E) but could not controvert the fact that the assessee had filed the response on 03/12/2024 before the ld. CIT(E). 7. We have heard the rival submissions and perused the materials available on record. Before us, the ld. A.R. of the assessee submitted that the assessee had furnished the required documents on 3rd of December, 2024, however, the ld. CIT(E) passed the order cancelling the registration without considering the documents/details submitted by the assessee trust. Further, before us, the ld. A.R. of the assessee submitted that one more opportunity may be granted to the assessee trust to represent its ITA Nos.190 & 191/Bang/2025 Kodavaame, Bangalore Page 4 of 5 case and remand the both the matters back to the file of the ld. CIT(E) for fresh consideration. This being so, in the interest of justice and fair play and as requested by the ld. A.R. of the assessee, we deem it fit and proper to remit the entire issue in dispute to the file of ld. CIT(E) to decide afresh in accordance with law. Needless to say, a reasonable opportunity of being heard must be granted to the assessee. We also direct the assessee to produce/submit all the necessary details/documents/record/ financials/reports in support of its claim and should not take unnecessary adjournments. It is ordered accordingly. 8. In the result, appeal of the assessee is partly allowed for statistical purposes. 9. Now we take up ITA No.191/Bang/2025, wherein the assessee has raised following grounds of appeal: 10. Since we have remitted the entire issue of registration u/s 12AB of the Act to the file of ld. CIT(E), we deem it fit and proper to ITA Nos.190 & 191/Bang/2025 Kodavaame, Bangalore Page 5 of 5 remit this issue of approval u/s 80G of the Act to the file of ld. CIT(E) to decide afresh in accordance with law as the the ld. CIT(E) had passed the order without considering the submissions made by the assessee. It is ordered accordingly. 11. In the result, appeal filed by the assessee in ITA No.191/Bang/2025 is also partly allowed for statistical purposes. 12. In the combined result, both the appeals filed by the assessee are partly allowed for statistical purposes. Order pronounced in the open court on 9th June, 2025 Sd/- (Laxmi Prasad Sahu) Accountant Member Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated 9th June, 2025. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. "