PRABHATHAM CHARITABLE TRUST,SHORANUR V. CIT(EXEMPTION), KOCHI

ITA 280/COCH/2024

AI Insights

The case involves the Prabhatham Charitable Trust, which appealed against the decision of the CIT (Exemption), Kochi, rejecting their application for final registration under Form No. 10AB. The Trust had initially received provisional registration but failed to respond to notices due to the personal commitments of the Managing Trustee, leading to the rejection of their application. The Tribunal noted the Trust's circumstances and the procedural oversight, deciding to remit the case back to the CIT (Exemption) for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126696 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2023-2024
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJIT KUMAR DAS
• Keywords: Opportunity of being heard; Charitable institution

Judgement Text

"ITA No.280/Coch/2024 Prabhatham Charitable Trust, Shoranur IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH: COCHIN BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No.280/Coch/2024 Assessment Year: 2023-24 Prabhatham Charitable Trust Kulappully Shoranur Kerala 679 122 PAN NO : AADTP9349N Vs. CIT (Exemption) Cochin APPELLANT RESPONDENT Appellant by : None Respondent by : Shri Sanjit Kumar Das, D.R. Date of Hearing : 19.02.2025 Date of Pronouncement : 24.04.2025 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: This appeal at the instance of the assessee is directed against the order of the ld. CIT(Exemption), Kochi dated 7.2.2024 vide DIN & Notice No. ITBA/EXM/F/EXM45/2023-24/1060586719(1) rejecting the application for registration/approval filed by the assessee. 2. The assessee has raised the following grounds of appeal: ITA No.280/Coch/2024 Prabhatham Charitable Trust, Shoranur Page 2 of 4 3. Brief facts of the case are that the assessee is a Charitable Trust. The Trust deed is registered before the Sub Registrar Office, Ottapalam on 15.11.2018. The assessee was granted a provisional Registration with No. AADTP9349NE20206. The application for final registration has been filed in Form No. 10AB on 28/09/2023, i.e. well within the permitted time, i.e. six months prior to the expiry of the period of provisional registration. The ld. CIT (Exemption) accordingly issued hearing notice dated 04/01/2024 and Show cause notice dated 16/01/2024. As contended, the Managing Trustee was busy with his personal matter as his daughter's marriage was scheduled to be held on 29/01/2024 and due to this, the notice dated 04/01/2024 missed his attention. Further, the assessee in response to the show cause notice dated 16/01/2024 uploaded an adjournment request in the Income Tax portal. However, the Ld. CIT (Exemption) rejected the application for registration vide Order dated 07/02/2024 stating that the applicant has not filed any reply/documents in response to hearing notice dated 04/01/2024 or show cause notice dated 16/01/2024. ITA No.280/Coch/2024 Prabhatham Charitable Trust, Shoranur Page 3 of 4 4. Aggrieved by the order of ld. CIT(E) rejecting the application, the assessee is in appeal before us. 5. None appeared at the assessee’s behest. We accordingly proceed with ex-parte. 6. Before us, the ld. D.R. vehemently submitted that in spite of providing two opportunities by the ld.CIT(E), the assessee did not file any reply/document in response to hearing notice, therefore, ld. CIT(E) Kochi has rightly rejected the application filed in Form 10AB. 7. We have heard the rival submissions and perused the materials available on record. On going through the annexure attached to Form No.10AD, we take a note that the ld. CIT(E) Kochi has rejected the application for approval on the sole ground that the assessee has not filed any reply/documents in response to hearing notice dated 4.1.2024 and show cause notice dated 16.1.2024. Assessee in his written statement of facts filed before us has submitted that due to marriage of the daughter of managing trustee which was held on 29.1.2024, the assessee could not represent the case before the ld. CIT(E). Further, the assessee in his written statement of facts submitted that in response to show cause notice dated 16/01/2024, the assessee uploaded the adjournment request in the income tax portal. This Being so, considering the grounds of appeal as well as in the interest of justice and fair play, we remit back the entire issues in dispute to the file of ld. CIT(E), Kochi to decide afresh in accordance with the law. Needless to say, a reasonable opportunity of being heard must be granted to the assessee. The assessee is also directed to file necessary Information/records/accounts/evidence as may be required by the ld. CIT(E) for granting the registration. We make it clear that in case ITA No.280/Coch/2024 Prabhatham Charitable Trust, Shoranur Page 4 of 4 of further default, the assessee shall not be entitled for any leniency. It is ordered accordingly. 8. In the result, appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 24th Apr, 2025 Sd/- (Inturi Rama Rao) Accountant Member Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated 24th Apr, 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, Cochin. "