NITHI EDUCATIONAL TRUST ,DAKSHINA KANNADA V. COMMISSIONER OF INCOME TAX(EXEMPTIONS), BANGALORE

ITA 2384/BANG/2024

AI Insights

The case involves Nithi Educational Trust, a charitable trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Bangalore, denying them exemption under section 12AB of the Income Tax Act. The denial was initially based on the trust's failure to provide sufficient documentation proving its activities, as required for the renewal of its registration under section 12AB. However, subsequent to the initial decision, the trust obtained the necessary recognitions from relevant educational authorities. The Tribunal, acknowledging these developments, restored the matter to the CIT (Exemptions) for a re-evaluation in light of the new evidence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473987 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAVEESH RAO; WAY OF FILING RELEVANT DOCUMENTSDETAILS
• Keywords: Charitable institution
• Section: 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER ITA No.2384/Bang/2024 Assessment year : N.A. Nithi Educational Trust, Puthuvelil House, Thottathady, Belthangady Post – 574 228. Dakshina Kannada. PAN: AADTN 5575E Vs. The Commissioner of Income Tax (Exemptions), Bangalore. APPELLANT RESPONDENT Appellant by : Shri Raveesh Rao, CA Respondent by : Shri Sridhar E., CIT(DR)(ITAT), Bengaluru. Date of hearing : 21.01.2025 Date of Pronouncement : 27.01.2025 O R D E R Per Prakash Chand Yadav, Judicial Member The present appeal of the assessee is arising out of the order of the ld. CIT(Exemptions), Bangalore dated 26.8.2024 having DIN ITBA/EXM/F/EXM45/2024-25 and relates to denial of exemption u/s. 12AB of the Act. 2. The brief facts of the case as coming out from the orders of the authorities below are that the appellant is a charitable trust registered ITA No.2384/Bang/2024 Page 2 of 3 under the Indian Trusts Act. It has been granted provisional registration u/s. 12A for the AY 2023-24 to 2024-25. The assessee applied for renewal of 12AB registration vide application dated 29.2.2024. While dealing with the application of the assessee, the ld. CIT(Exemptions) observed that assessee’s application to Karnataka Nursing and Para Medical Science Regulatory Authority and Rajiv Gandhi University of Health Sciences were pending with the authorities and hence the assessee has failed to prove the activities carried out by the assessee by way of filing relevant documents/details required for registration of assessee u/s. 12AB of the I.T. Act. 3. The ld. counsel appearing on behalf of the assessee pointed out that assessee has received the recognition from the Rajiv Gandhi University of Health Sciences on 13.11.2024 and also obtained the certificate from the Karnataka Nursing and Para Medical Science Regulatory Authority. Therefore, the matter may be restored to the file of the ld. CIT(Exemptions) for deciding it afresh in the light of approvals received by the assessee. 4. The ld. DR relied upon the orders of authorities below, however could not seriously object to restoration of the matter before the ld. CIT(Exemptions). 5. After considering the rival submissions, we are of the view that in the light of the fact that the assessee has received the approvals from Karnataka Nursing and Para Medical Science Regulatory Authority and Rajiv Gandhi University of Health Sciences. The matter requires ITA No.2384/Bang/2024 Page 3 of 3 fresh adjudication at the end of CIT(E). Therefore, we to restore the matter to the file of ld. CIT(Exemptions) to examine it afresh. Before parting we would like to observe that counsel for the assessee has assured that the assessee will abide with UGC guidelines and other allied laws. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Pronounced in the open court on this 27th day of January, 2025. Sd/- Sd/- ( LAXMI PRASAD SAHU ) ( PRAKASH CHAND YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Bangalore, Dated, the 27th January, 2025. /Desai S Murthy / Copy to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore. "