PACT FOUNDATION,GOA V. CIT, EXEMPTIONS, BENGALURU

ITA 311/PAN/2024

AI Insights

The case involves Pact Foundation, a registered charitable trust, which appealed against the order of the Commissioner of Income Tax (Exemptions), Bangalore, rejecting their application for permanent registration under section 12AB of the Income Tax Act. The initial rejection was due to the assessee's failure to comply with notices seeking clarifications and additional information regarding the genuineness of the trust's activities. The Tribunal, after hearing the submissions and considering the principles of natural justice, decided to set aside the CIT(E)'s order and remand the matter for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32349 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2024-2025
• Laws Referred To: Section 12AB of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CAPTAIN PRADEEP ARYA
• Keywords: Set aside; Principle of natural justice; Charitable institution
• Section: 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos. 311/PAN/2024 (A.Y. 2024-25) Pact Foundation, F1,Pirazona Moria, Bardez Aldona.S.O, Jasmine Plaza, North Goa-403508 Goa. Vs . CIT (Exemptions), Unity Building Annex, Mission Road, Bangalore-560027, Karnataka. . PAN .No. AAFTP2682J (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) Assessee by None(Letter 4-03-2025) Revenue by Shri.Captain Pradeep Arya.DR सुनवाई की तारीख/Date of Hearing 05.03.2025 घोषणा की तारीख/Date of Pronouncement 06.03.2025 ORDER PER BENCH: The assessee has filed the appeal against the order of the Commissioner of Income Tax (Exemptions)(CIT(E)), Bangalore passed u/sec12AB(I)(b)(ii) of the Act. 2. There is a delay of 19 days in filing the appeal before the Hon’ble Tribunal and the assesse has filed the affidavit for condonation of delay. Whereas, the facts mentioned in the affidavit are reasonable and the Ld. DR has no specific objections. Accordingly, we condone the delay and admit the appeal. The assessee has raised the grounds of appeal 2 ITA No. 311/Pan/2024 Fact Foundation Goa challenging the order of the CIT(E) rejecting the application filed fror registration u/sec12AB of the Act. 3. The brief facts of the case are that, the assessee is a registered charitable trust and is undertaking charitable activities as per the registered trust deed dated 8-07-2022. The assesse was granted provisional registration under section 12AB of the Act in Form.no.10AC on 19-01-2023. Subsequently, as per the amended, provisions of section 12AB of the Act, The assessee for the purpose of permanent registration has uploaded e-application in Form. No.10AB on 20-03-2024 and since there was no proper compliance to the notices of hearing, the same was rejected by the CIT(E). Aggrieved by the CIT(E) order, the assessee has filed before the Honble Tribunal. 4. We have heard the Ld.DR submissions and perused the material available on record. The assessee has filed the application before the CIT(E) for permanent registration under section 12A of the Act, whereas the CIT(E) in course of hearing proceedings has issued e-notice on the assessee through ITBA portal for certain clarifications and additional information to verify the genuineness of the activities of the trust. Since there was no proper response to the notices in spite of providing sufficient opportunities to the assessee, the CIT(E) has rejected the application. Hence we considering, the facts, circumstances and the principles of natural justice shall provide with one more opportunity of hearing to the assesse to substantiate the 3 ITA No. 311/Pan/2024 Fact Foundation Goa case along with evidences and information. Accordingly, we set aside the impugned order and direct the CIT(E) to denovo consider the application as per the law and we allow the grounds of appeal of the assessee for statistical purposes. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 06.03.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 06/03/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji 4 ITA No. 311/Pan/2024 Fact Foundation Goa Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed "