ORGANISATION FOR DEVELOPMENT INTEGRATED SOCIAL AND HEALTH ACTION,BHUBANESWAR V. ITO,EXEMPTION WARD, BHUBANESWAR

ITA 380/CTK/2024

AI Insights

The case involves the Organisation for Development Integrated Social and Health Action, which appealed against the cancellation of its registration under sections 12AA and 12AB of the Income Tax Act by the CIT (Exemption), Hyderabad. The trust, registered under the Registration of Societies Act, 1860, aimed at facilitating agricultural production and rural development, had been claiming exemptions under section 11 of the Income Tax Act. The CIT (Exemption) issued a show cause notice for cancellation due to non-compliance and failure to maintain proper accounts, which the trust did not adequately address. The tribunal found procedural lapses in the cancellation process and restored the matter for re-evaluation, emphasizing the need for adherence to principles of natural justice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 25984 (ITAT-CUTTACK)
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 11-11-2024
• Assessment Year: misc
• Appeal Filed On: 18-09-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ABANI KANTA NAYAK
• Keywords: Principle of natural justice; Cancellation of registration; Maximum Marginal Rate

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE MANISH AGARWAL Organisation for Development Social and health Action, Plot No.438, Near Jemadevi High School, Lingipur, Bhubaneswar. PAN/GIR No. (Appellant Per Bench This is an CIT(Exemption), Hyderabad No.ITBA/COM/F/17/2024 2. None appeared for DR appeared for the revenue. IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND MANISH AGARWAL, ACCOUNTANT MEMBER ITA No380/CTK/2024 Assessment Year : 2025-26 Organisation for Integrated Social and health Action, Plot No.438, Near Jemadevi High School, Lingipur, Bhubaneswar. Vs. CIT (Exemption), Hyderabad No.AAAAO 0495 J (Appellant) .. ( Respondent Assessee by : None Revenue by : Dr. Abani Kanta Nayak, CIT Date of Hearing : 11/11/20 Date of Pronouncement : 11/11/20 O R D E R This is an appeal filed by the assessee against the ord CIT(Exemption), Hyderabad dated 25.7.2024 in Appeal No.ITBA/COM/F/17/2024-25/1067012057(1). appeared for the assessee and Dr. Abani Kanta Nayak, ld CIT DR appeared for the revenue. P a g e 1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, MEMBER , ACCOUNTANT MEMBER CIT (Exemption), Hyderabad Respondent) : Dr. Abani Kanta Nayak, CIT DR 2024 024 appeal filed by the assessee against the order of the ld 25.7.2024 in Appeal the assessee and Dr. Abani Kanta Nayak, ld CIT ITA No380/CTK/2024 Assessment Year : 2025-26 P a g e 2 | 3 3. We have considered the submissions of ld CIT DR. In this case, the assessee trust was formed by Registration of Societies Act, 1860 vide registration No.5013 of 1997-98 dated 12.9.1997. The main object of the trust is to facilitate/undertake agricultural production for the betterment of the small, marginal and landless farmers of the rural areas as to implement/undertake project/programmes relating to rural development and many others. The society is also registered u/s.12A of the Act dated 16.11.2006. Since the assessee trust is registered u/s.12A of the Act, the assessee truest filed its return of income regularly claiming exemptions u/s.11 of the Act. Ld CIT(E) noticed that from the assessment year 2014- 15 to 2018-19, additions were made in the scrutiny assessment due to improper maintenance of account or otherwise but since from A.Y. 2019-10, the total income of the assessee trust charged at normal rate instead of maximum marginal rate. In view of above, a show cause notice u/s.12AB(4) of the act for cancellation of registration granted u/s.12A of the I.T.Act was issued to the assessee. However, no explanation was furnished by the assessee trust. As the assessee trust failed to furnish any information with regard to the notices issued in respect of cancellation of registration, the ld CIT(E) was of the view that the assessee trust is not genuine and cancelled the registration granted to the assessee trust u/s.12AA or 12AB of the Act. In the grounds of appeal, the assessee has stated that the ld CIT(A) has cancelled the registration in gross violation of ITA No380/CTK/2024 Assessment Year : 2025-26 P a g e 3 | 3 principles of natural justice, which is against the provisions of the Act. Considering the totality of the facts and circumstances of the case and in view of the fact that no documentary evidence was furnished by the assessee before the ld CIT (E) in respect of its claim, the issues in this appeal are restored to the file of the ld CIT(E) for fresh consideration. The assessee is also directed to furnish all the documentary evidences, as would be required by the ld CIT(E) for adjudication the issue afresh. 4. In the result, appeal of the assessee stands partly allowed for statistical purposes. Order dictated and pronounced in the open court on 11/11/2024. Sd/- sd/- (Manish Agarwal) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 11/11/2024 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.Secretary ITAT, CUTTACK 1. The Appellant : Organisation for Development Integrated Social and health Action, Plot No.438, Near Jemadevi High School, Lingipur, Bhubaneswar 2. Respondent: CIT (Exemption), Hyderabad 3. DR, ITAT, 4. Guard file. //True Copy// "