M/S. MJN FOUNDATION ,BANGALORE V. THE COMMISSIONER OF INCOME TAX( EXEMPTIONS), , BENGALURU

ITA 2029/BANG/2024

AI Insights

The case involves M/s. MJN Foundation appealing against the decision of the CIT (Exemptions), which denied approval under section 80G(v) of the Income Tax Act. The CIT (E) had observed that the assessee failed to submit necessary documents to prove the genuineness of its charitable activities as required under the conditions of section 80G. The assessee argued that it had submitted the required documents, which were not properly appreciated by the CIT (E). The Tribunal noted that the assessee had been granted registration under section 12A and had filed for approval under section 80G(v), but had not complied with the notices issued by the CIT (E) to substantiate its activities. The Tribunal decided to remit the issue back to the CIT (E) for a fresh evaluation, emphasizing the need for the assessee to cooperate and provide the necessary documentation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 32958 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 28-11-2024
• Assessment Year: misc
• Appeal Filed On: 25-10-2024
• Laws Referred To: Section 80G(v) of the Act, Section 12A of the Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V. SRINIVASAN
• Keywords: Opportunity of being heard; Charitable institution
• Section: 12A; 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K, JUDICIAL MEMBER ITA No.2029/Bang/2024 Assessment Year : NA M/s. MJN Foundation, No.32, Yesshodanagar Near Jakkur, Plantation Airport Road, Yelahanka, GKVK, Bengaluru – 560 064. PAN : AAPCM 5819 D Vs. CIT (Exemptions), Bengaluru. APPELLANT RESPONDENT Assessee by : Shri. V. Srinivasan, Advocate. Revenue by : Shri. Subramanian, JCIT(DR)(ITAT), Bengaluru. Date of hearing : 28.11.2024 Date of Pronouncement : 04.12.2024 O R D E R Per Laxmi Prasad Sahu, Accountant Member This appeal is filed by the assessee against the Order passed by the CIT(E) dated 26.09.2024 for not granting approval under section 80G(v) of the Act, observing that the assessee was unable to submit necessary documents to prove the genuineness of the activities of the Trust or institution and non-fulfillment of all the conditions laid down in clauses 1 to 5 under section 80G of the Act. 2. The learned AR of the assessee submitted that the documents were filed by the assessee for substantiating its case before the CIT(E) has not ITA No.2029/Bang/2024 Page 2 of 3 been properly appreciated and denying the approval under section 80G(v) of the Act and the CIT(E) has not granted further time for substantiating genuine activities carried out by the assessee. Therefore, he requested that a chance may be given to the assessee and he undertook to comply the notices in this regard and will prove the genuineactivities for charitable purpose. Assessee has filed Paper Book comprising of 33 pages. The institution has been granted registration under section 12A of the Act, after substantiating the charitable activities carried out by the assessee. There is no change in the facts of the memorandum of association or bye laws of the institution after granting registration u/s 12A of the I T act.. 3. The learned DR relied on the Order of the CIT(E) and submitted that the CIT(E) has issued notice dated 22.07.2024 but the assessee was unable to comply with the above notice as called for. 4. Considering the rival submission, we note that the assessee has been granted registration under section 12A of the act, and it filed Form No.10AB dated 29.03.2024 for approval under section 80G(v) of the Act and assessee was granted opportunity of being heard and was issued two notices on 22.07.2024 & 23.08.2024, but we noted that as per the Order of the CIT(E), assessee could not comply with the notices and substantiate the genuine activities carried out by the assessee with documentary evidences. Considering the prayer and in the interest of justice we are remitting issue back to the CIT (E) for de novo consideration and decision as per law. The assessee is directed to provide the necessary documents that would be essential and required for substantiating its case and for proper adjudication by the CIT (E). Needless to say that reasonable opportunity of being heard be given to the assessee. The assessee is directed to cooperate with the ITA No.2029/Bang/2024 Page 3 of 3 proceedings and in case of further default, the assessee shall not be entitled to any leniency. 5. In the result, the appeal by the assessee is allowed for statistical purposes. Pronounced in the open court on the date mentioned on the caption page. Sd/- Sd/- (SOUNDARARAJAN K.) (LAXMI PRASAD SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER Bangalore, Dated : 04.12.2024. /NS/* Copy to: 1. Appellant 2. Respondent 3. Pr.CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore. "