NISARGA CHARITABLE TRUST,BANGALORE V. COMMISSIONER OF INCOME TAX EXEMPTIONS , BANGALORE

ITA 450/BANG/2025

AI Insights

The case involves Nisarga Charitable Trust, which appealed against the decisions of the Commissioner of Income Tax (Exemptions), Bengaluru, rejecting their applications for registration under section 12AB and approval under section 80G of the Income-tax Act, 1961. The rejections were primarily due to procedural issues such as the failure to furnish required documents and the premature filing of applications before obtaining provisional registration. The Tribunal found merit in the assessee's arguments that these were mere procedural irregularities and did not substantively affect the eligibility for registration and approval. Consequently, the Tribunal remanded the cases for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314454 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2022-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: E SHRIDHAR
• Assessee Lawyers: NAGARAJ; TRUST PRESIDENT
• Keywords: Set aside; Opportunity of being heard; Charitable institution
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No. 450 & 451/Bang/2025 Assessment Year: 2022-23 Nisarga Charitable Trust, 150/1, Hosapalya Agara Village, Kengeri Hobli, Bengaluru – 560 082. PAN – AADTN 4933 E. Vs. The Commissioner of Income Tax (Exemptions) Bengaluru. . APPELLANT RESPONDENT Assessee by : Shri Nagaraj, Trust President Revenue by : Shri E Shridhar, CIT (DR) Date of hearing : 06.05.2025 Date of Pronouncement : 09.05.2025 O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: These appeals by the assessee are directed against the separate orders passed by the Ld. Commissioner of Income Tax (Exemptions), Bangalore, both dated 12.08.2023, whereby the applications filed by the assessee under section 12AB and section 80G of the Income-tax Act, 1961, were rejected. 2. In ITA No. 450/BANG/2025, the assessee's application in Form No. 10AB for registration under section 12AB was rejected on the grounds that: ITA No.450 & 451/Bang/2025 Page 2 of 3 . o the assessee failed to furnish all the documents/details as required despite opportunities being granted; o the application was filed on 19.02.2023, prior to the grant of provisional registration on 30.04.2023. 3. In ITA No. 451/BANG/2025, the application seeking approval under section 80G was similarly rejected citing lack of compliance and failure to submit relevant documentation. 4. During the course of hearing, the Ld. Authorised Representative (AR) submitted that the activities of the trust have been commenced in accordance with its stated charitable objects and the omissions in submission of documents were unintentional. He prayed that both matters may be set aside to the file of the Ld. CIT(E) for fresh adjudication. The ld. AR also assured full cooperation and submission of requisite information to the ld. CIT(E). 5. On the other hand, the Ld. Departmental Representative (DR) did not raise any objection to the assessee’s prayer for remand. 6. We have heard the rival contentions of both the parties and perused the materials on record. We find merit in the submissions of the Ld. AR. Mere procedural irregularities such as filing the application before obtaining provisional registration under section 12AB of the Act, or delay in filing supporting documents, should not defeat the substantive claim where the charitable activities have been initiated in line with the stated objects. Hence, in the interest of justice, both issues ITA No.450 & 451/Bang/2025 Page 3 of 3 . are restored to the file of the Ld. CIT(E) for fresh adjudication. Accordingly, the order rejecting registration under section 12AB (ITA No. 450/BANG/2025), and the order rejecting approval under section 80G (ITA No. 451/BANG/2025) are set aside to the file of the Ld. CIT(E) with a direction to examine the assessee’s applications afresh, after affording a reasonable opportunity of being heard. 7. The assessee is directed to submit all relevant documents and cooperate in the proceedings. No unwarranted adjournments shall be entertained, and failure to comply may lead to ex parte adjudication. 8. In the result, both appeals of the assessee are hereby are allowed for statistical purposes. Order pronounced in court on 9th day of May, 2025 Sd/- Sd/- (KESHAV DUBEY) (WASEEM AHMED) Judicial Member Accountant Member Bangalore Dated, 9th May, 2025 / vms / Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore "