PLAKSHA INCUBATION CENTRE,MOHALI V. COMMISSIONER OF INCOME TAX EXEMPTION , CHANDIGARH

ITA 1186/CHANDI/2024

AI Insights

The case involves Plaksha Incubation Centre, which appealed against the rejection of their application for approval under section 80G(5)(iii) of the Income Tax Act by the CIT (Exemptions), Chandigarh. The CIT (E) had rejected the application on the grounds that the appellant had not made any investments towards starting the incubation center earnestly. However, the Tribunal noted that the appellant had been granted registration under section 12AB(1)(b) and had entered into an MOU for incubation, indicating that they were in the process of fulfilling their objectives. The Tribunal concluded that the activities of the appellant, being developmental in nature, would take time to materialize and thus directed the CIT (E) to grant the registration sought.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 773815 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2023-2024
• Appeal Filed On: 05-12-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND KUMAR LD
• Assessee Lawyers: AJAY JAIN LD

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.1186 /CHANDI/2024 Plaksha Incubation Centre Block B, Sector 101, Alpha IT City SAS Nagar, Mohali - 140306 बनाम/ Vs. CIT (Exemptions) CR Building, Himalaya Marg Sector 17-E, Chandigarh ̾थायीलेखासं./जीआइआरसं./PAN/GIR No.AANCP-2233-N (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎ की ओर से / Appellant by : Shri Ajay Jain (CA) -Ld. AR ŮȑथŎ की ओर से / Respondent by : Shri Arvind Kumar (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 26-08-2025 घोषणाकीतारीख /Date of Pronouncement : 08-09-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application seeking approval u/s 80G(5)(iii) of the Act vide impugned order dated 25-11-2024 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2. The Ld. CIT(E) observed that the assessee was engaged in incubation centre activity but it had not made any investment towards the same. The perusal of financial statements would show that the assessee had not started the incubation centre in the right earnest. Printed from counselvise.com 2 There had been no investment in the physical and governance infrastructure. In the absence of any credible genuine activity, the application was rejected against which the assessee is in further appeal before us. 3. From case records, it emerges that the assessee has been granted regular registration u/s 12AB(1)(b) on 16-03-2024 for AYs 2023-24 to 2027-28 which is placed on Page Nos.11 to 14 of the paper-book. The assessee has been registered as Sec. 8 Companies under The Companies Act, 2013. The report on the activities of assessee trust has been placed on Page Nos.89 to 138 of the paper- book. Further, the assessee has entered into MOU for incubation on 20-05-2024 with M/s Agmira Technologies Private Ltd. Though the assessee may not have expanded substantial resources towards attainment of its objectives yet it is in the process of undertaking the same. The activities of the assessee are such that it would take longer period of time to fructify. No violation of provisions has been noted. On these facts, in our considered opinion, the impugned registration could not be denied to the assessee. The Ld. CIT(E) is directed to grant the impugned registration to the assessee as per its application. 4. The appeal stand allowed. Order pronounced on 08-09-2025 Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 08-09-2025. Printed from counselvise.com 3 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "