PARADARSHAK MEDIA FOUNDATION,BANGALORE V. CIT(E), BANGALORE

ITA 183/BANG/2025

AI Insights

The case involves Paradarshak Media Foundation, a Section 8 company based in Bangalore, which sought final registration under sections 12A and 80G of the Income Tax Act, 1961. Initially, provisional registrations were granted, but the final registrations were denied by the CIT (Exemption) based on the assessment officer's conclusion that the foundation's activities were commercial, not charitable. The foundation contested this decision, highlighting the lack of a hearing notice and inadequate consideration of their submissions. The Tribunal found merit in the foundation's arguments and remitted the case back to the CIT (Exemption) for a thorough re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34291 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBRAMANIAN S.
• Assessee Lawyers: PRASANNA URALA
• Section: 12A; 80G

Judgement Text

"ITA Nos.183 & 184/Bang/2025 Paradarshak Media Foundation, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “B’’ BENCH: BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER ITA Nos.183 & 184/Bang/2025 Assessment Years: NA Paradarshak Media Foundation 30/5, 2nd Main, 8th Cross Nandini Layout, 2nd Block Bangalore 560 096 Karnataka PAN NO : AAYCS2893J Vs. CIT (Exemption) Bangalore APPELLANT RESPONDENT Appellant by : Sri Prasanna Urala, A.R. Respondent by : Sri Subramanian S., D.R. Date of Hearing : 24.03.2025 Date of Pronouncement : 26.03.2025 O R D E R PER PRAKASH CHAND YADAV, JUDICIAL MEMBER: The present appeals are arising from the order of ld. CIT(Exemption) dated 30.12.2024 and pertain to the denial of registration u/s 12A & 80G of the Income Tax Act, 1961 (in short “The Act”). 2. The brief facts of the case are that the assessee is a section 8 company registered under the Companies Act, 2013 with an object to foster transparency, accountability and informed public discourse in respect of matters pertaining to inefficient and corrupt practices of the Govt. The assessee operates three key ventures. The assessee applied for provisional registration under section 12A(1)(ac) as well as 80G(5)(iv) and both these provisional registrations were granted to the assessee. Subsequently, the assessee filed applications for final ITA Nos.183 & 184/Bang/2025 Paradarshak Media Foundation, Bangalore Page 2 of 3 registration in June 2024. The assessee received notices from the ITO, Exemptions Ward — 2, Bangalore seeking for various information and documents. The assessee duly furnished all the information which was called for by the ITO. The AO concluded that the assessee’s activities were not charitable in nature but in fact were commercial in nature. Based on the same, the Ld. CIT(E) passed an order rejecting both the 12A as well as the 80G applications of the assessee. 3. The ld. A.R. appearing on behalf of the assessee pointed out that neither any notice of any hearing was issued by the Office of ld. CIT(Exemption) nor the submissions made by the assessee before the AO have been appreciated, before rejecting the applications filed by the assessee. Hence the AR craved that matter may be restored to the file of ld. CIT (Exemption) for examining afresh on the basis of the documents and material on record. 4. The ld. D.R. relied upon the orders of authorities below, however, could not be able to refute the contention of the ld. A.R. that no notice of hearing was ever granted by the CIT(Exemption) Office before rejecting the application. 5. We have heard the rival submissions and perused the materials available on record. We observe that the assessee is a Section-8 company and a non-profit organization. The registration granted to these companies’ u/s 8 are subjected to the control of Reserve Bank of India (RBI) and various other agencies of the Government of India. Perusal of the order of ld. CIT (Exemption) would show that the ld. CIT(Exemption) has just gone by the observations of the AO and has not decided the contention of the assessee on the basis of material available on record. Therefore, in the interest of justice, we remit these matters to the file of ld. ITA Nos.183 & 184/Bang/2025 Paradarshak Media Foundation, Bangalore Page 3 of 3 CIT(Exemption) with a direction that the ld. CIT (Exemption) would decide the application of the assessee after discussing the entire material filed with the office of ld. CIT (Exemption). The assessee is also at liberty to file any other document for supporting its application. 6. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 26th Mar, 2025 Sd/- (Waseem Ahmed) Accountant Member Sd/- (Prakash Chand Yadav) Judicial Member Bangalore, Dated 26th Mar, 2025. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. "