NAV APOORV WELFARE DHARMIK AND PARMARTHIK TRUST,INDORE V. CIT (EXEMPTION) BHOPAL, BHOPAL

ITA 694/IND/2024

AI Insights

The case involves Nav Apoorv Welfare Dharmik and Parmarthik Trust, which appealed against the order of the Commissioner of Income-Tax (Exemption), Bhopal, rejecting their application for registration under section 12A(1)(ac)(iii) of the Income-tax Act, 1961, as per the new provisions of section 12AB. The CIT(E) had rejected the application due to the non-submission of required documents by the trust, despite multiple opportunities given. The trust argued that the communications were not properly served, and requested another opportunity to present their case. The Departmental Representative agreed to the remand but requested that the trust not seek unnecessary adjournments.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34574 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEEDREWUSTOIMPUGNEDORDERTODEMONSTRATETHAT; FORASSESSEEBECAUSETHE; FORASSESSEETRUSTTOACHIEVEITS; FORREVENUEAGREESWITHTHEPRAYEROFLD.ARBUTMAKESA; SHRIRAM KUMAR YADAV
• Assessee Lawyers: SHRIHARSHVIJAYWARGIYAAR; PHYSICALMODE.FURTHER; THOSENOTICES; RESTORINGTHISMATTERATTHELEVEL
• Keywords: Principle of natural justice; Charitable institution
• Section: 12A

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.694/Ind/2024 Nav Apoorv Welfare Dharmik and Parmarthik Trust, 790-B, Scheme No.71, Indore बनाम/ Vs. CIT(E) Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN: AAETN1980E Assessee by Shri Harsh Vijaywargiya AR Revenue by Shri Ram Kumar Yadav, CIT-DR Date of Hearing 25.03.2025 Date of Pronouncement 25.03.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order dated 04.09.2024 passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] bearing DIN: ITBA/EXM/F/EXM45/2024-25/1068329892(1) by which the assessee’s application for grant of registration u/s 12A(1)(ac)(iii) under the new provisions of section 12AB of Income-tax Act, 1961 [“the Act”] has been rejected, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36). Nav Apoorv Welfare Dharmik and Parmarthik Trust ITA No. 694/Ind/2024 Page 2 of 3 2. Ld. AR for assessee drew us to impugned order to demonstrate that the CIT(E) has rejected assessee’s application for the reason that three opportunities were given to assessee vide letters dated 29.07.2024, 19.08.2024 & 28.08.2024 to submit certain details/documents but the assessee has neither submitted the required documents nor sought adjournment. Ld. AR firstly submitted that the letters referred by CIT(E) were not served upon assessee by physical mode. Further, those notices might have been served by email but they were given in a short span of time and remained unattended because the assessee is a charitable trust being managed by honorary office-bearers. Ld. AR next submitted that the registration u/s 12A is an important issue for assessee because the exemption u/s 11/12 is dependent upon such registration and in absence of registration it would not be possible for assessee-trust to achieve its charitable purpose. Ld. AR submitted that in the interest of justice one more opportunity should be given to assessee by restoring this matter at the level of CIT(E). 3. Ld. DR for revenue agrees with the prayer of Ld. AR but makes a request to direct the assessee to represent its case before CIT(E) and do not seek unnecessary adjournments. 4. Considering above submissions and also having regard to the principle of natural justice and fair play, we deem it fit to remand this matter back to the file of CIT(E) for adjudication afresh. The CIT(E) shall give necessary opportunity of hearing to assessee and pass an appropriate order. Nav Apoorv Welfare Dharmik and Parmarthik Trust ITA No. 694/Ind/2024 Page 3 of 3 The assessee is also directed to ensure participation in the hearings as may be fixed by 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 immediately after conclusion of hearing and subsequently reduced in writing on the very same day. Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 25/03/2025 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 "