RAISING SHAKTI FOUNDATION,HYDERABAD V. CIT(EXEMPTIONS), HYDERABAD

ITA 312/HYD/2025

AI Insights

The case involves the Raising Shakti Foundation, a trust based in Hyderabad, which appealed against the decisions of the Commissioner of Income Tax (Exemption), Hyderabad. The CIT(Exemptions) had rejected the trust's applications for registration under Sections 12AB and 80G(5) of the Income-tax Act, 1961, citing non-compliance in providing complete details to verify the genuineness of the trust's activities and expenditures. The Tribunal found that the CIT(Exemptions) had not adequately addressed the submissions made by the trust and had failed to provide a reasoned order for the rejection, leading to the decision to remand the matter for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708643 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Other Referred Cases: Vidya Shankar Jaiswal vs. The Income Tax Officer, Ward-2, Ambikapur
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Principle of natural justice
• Section: 80G

Judgement Text

" आयकर अपीलीय न्यायाधिकरण में, हैदराबाद ‘ए’ बेंच, हैदराबाद IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ DB-A ‘ Bench, Hyderabad श्री रवीश सूद, माननीय न्याययक सदस्य एवं श्री मिुसूदन सावडिया, माननीय लेखा सदस्य SHRI RAVISH SOOD, HON’BLE JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA, HON'BLE ACCOUNTANT MEMBER I.T.A. Nos.312 and 313/Hyd/2025 Raising Shakti Foundation, Banajra Hills, Hyderabad. PAN : AANCR3773P. Vs. The Commissioner of Income Tax (Exemption), Hyderabad. (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व/ Assessee Represented by : Shri Pawan Chakrapani, C.A राजस्व का प्रतततितित्व/ Department Represented by : Shri B. Balakrishna, CIT-DR सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 08.07.2025 घोषणा की तारीख/ Date of Pronouncement : 18.07.2025 O R D E R प्रतत रवीश सूद, जे.एम./PER RAVISH SOOD, J.M. The captioned appeals filed by the assessee trust are directed against the respective orders passed by the Commissioner of Income- Tax (Exemption), [for short “CIT (Exemptions)”], Hyderabad, dated 20.11.2024, wherein the latter had declined the applications filed by the assessee trust for registration under Sections 12AB and 80G(5) of the 2 ITA Nos.312 and 313/Hyd/2025 Raising Shakti Foundation Income-tax Act, 1961 (in short ‘the Act’). Since, these appeals pertain to the same assessee trust, therefore, the same are being taken up and disposed off by way of a consolidated order. 2. We shall first take up the appeal filed by the assessee trust in ITA No.313/Viz/2025, wherein it has assailed the order passed by the CIT(Exemption), Hyderabad rejecting its application filed for registration under Section 12AB of the Act. The assessee trust has assailed the impugned order on the following grounds of appeal before us: “1. The order of rejection for approval under section 12AB of the Act, passed by the learned Principal Commissioner of Income-tax [Exemption], Hyderabad, dated 20/11/2024, in so far as it is against the Appellant is opposed to law, equity, weight of evidence, probabilities and the facts and circumstances in the Appellant's case. 2. Whether the learned Principal Commissioner of Income-tax (Exemptions), Hyderabad, is justified in mechanically rejecting the application filed by the Appellant for registration of the Appellant Trust under section 12AB of the Act, under the facts and circumstances of the case. 3. Whether the learned Principal Commissioner of Income-tax (Exemptions), Hyderabad, is justified in mechanically rejecting the application filed by the Appellant Trust under section 12AB stating that non submission of mandatory information to verify the genuineness of activates of the trust and expenditure of the towards objectives, under the facts and circumstances of the case. 4. The Appellant craves leave of this Honorable Tribunal to add, alter, delete or substitute any or all of the grounds urged above, at the time of hearing of the appeal by this Honorable Tribunal. 5. In the view of the above and other grounds that may be urged at the time of the hearing of the appeal, the Appellant prays that the appeal may be allowed in the interest of justice and equity.” 3. Succinctly stated, the assessee trust had filed an e-application in Form No.10AB seeking registration u/s 12AB of the Act. Thereafter, 3 ITA Nos.312 and 313/Hyd/2025 Raising Shakti Foundation the CIT(Exemptions) had issued notices dated 08.06.2024 and 20.08.2024 directing the assessee trust to furnish various documents, including the trust deed/Memorandum of Association along with the other information that was called for in the said notices. 4. Ostensibly, the assessee trust in response to the aforesaid notices, had submitted partial information. Thereafter, the CIT(Exemptions) issued another “Show Cause Notice” (SCN) dated 08.10.2024, wherein the assessee trust was called for to submit the other information latest by 16.10.2024. However, we find that the assessee trust has failed to respond to the aforesaid notice. 5. The CIT(Exemptions) in the absence of requisite details having been filed by the assessee trust proceeded with to dispose of the application based on the material available on record. The CIT(Exemptions) observing that the assessee trust had failed to place any material on record based on which the genuineness of its activities, could be verified, rejected the assessee trust’s application for registration u/s 12AB of the Act. 4 ITA Nos.312 and 313/Hyd/2025 Raising Shakti Foundation 6. Aggrieved, the assessee trust has assailed the order of CIT(A) dt.20.11.2024 declining its application for registration u/s 12AB of the Act before us. 7. Shri Pawan Chakrapani, C.A., the learned Authorized Representative (for short “Ld.AR”) of the assessee trust, at the threshold of hearing of the appeal, submitted that the present appeal involves a delay of 24 days. Elaborating on the reasons leading to the delay, the Ld. AR submitted that the same had crept in for the reason that though the assessee trust’s regular Chartered Accountant on learning from the income tax e-portal account of the assessee trust about the rejection of its application had informed about the same to assessee trust and had advised it to approach a counsel for assailing the matter before the Tribunal, but the entire process of engaging a counsel and filing the appeal took some time and the appeal filed before the Tribunal involved a delay of 26 days. The ld.AR to buttress his aforesaid contention had drawn support from the application filed by the assessee trust seeking condonation of the delay dated 22.02.2025 along with a supporting “Affidavit” of even date. The ld.AR submitted that as the delay in filing the appeal had crept in not on account of any mala fide conduct or lackadaisical approach, but due to bonafide reasons, therefore, the same in all fairness be condoned. 5 ITA Nos.312 and 313/Hyd/2025 Raising Shakti Foundation 8. Per contra, Shri B. Balakirshna, the Learned CIT-Departmental Representative (for short “Ld. CIT-DR”) objected to the seeking of the condonation of the delay involved in filing of the appeal. 9. We have thoughtfully considered the reasons leading to the delay involved in filing of the present appeal. At the threshold, we may herein observe that the assessee trust, in all fairness, had come with clean hands and fairly stated the actual reasons leading to the delay of 26 days involved in filing of the present appeal i.e. the time taken in engaging a counsel and filing the appeal. We are of the considered view that as the delay in filing of the present appeal is not inordinate and is backed by bonafide reason explaining the same, therefore, the same, in all fairness, merits to be condoned. Our aforesaid view that a justice oriented and liberal approach should be taken while considering an application filed by an appellant seeking condonation of the delay involved in filing the appeal is supported by the recent judgment of the Hon'ble Supreme Court in the case of Vidya Shankar Jaiswal vs. The Income Tax Officer, Ward-2, Ambikapur in Special Leave Petition (Civil) Nos. 26310-26311/2024, dated 31st January, 2025. The Hon'ble Apex Court while setting aside the order of the Hon'ble High Court of Chhattisgarh, which had approved the declining of the condonation of delay of 166 days by the Income Tax Appellate Tribunal, 6 ITA Nos.312 and 313/Hyd/2025 Raising Shakti Foundation Raipur Bench, had observed that a justice oriented and liberal approach should be adopted while considering the application filed by an appellant seeking condonation of the delay in filing the appeal. We thus, in terms of our aforesaid observations, condone the delay involved in filing of the present appeal. 10. We have heard the Ld. Authorized Representatives of both parties, perused the order of the CIT(Exemption) and the material available on record. 11. On a perusal of the record, we find that the CIT(Exemptions) had mechanically rejected the application filed by the assessee trust for registration u/s 12AB of the Act, by neither referring to the nature of the information that was furnished by the assessee trust nor making any observation regarding the partial compliance of its notices on the earlier occasion. In fact, we find that the impugned order merely states that the application filed by the assessee trust is rejected due to non- compliance, without providing any reason or analysis of the material that was placed on record. 12. Although, we are not oblivion of the fact that the assessee trust has failed in its duty in furnishing the complete details, as were called for by the CIT(Exemptions) to verify the genuineness of its activities and 7 ITA Nos.312 and 313/Hyd/2025 Raising Shakti Foundation also the incurring of the expenditure in furtherance of its objectives, but at the same time are unable to persuade ourselves to concur with the dismissal of the said application vide a non-speaking and cryptic order which by no means is found to be in conformity with the principles of natural justice. We are of the firm conviction that the CIT(Exemptions) was required to pass a reasoned and speaking order, even if the assessee trust had failed to fully comply with his directions and had carried out partial compliance to the notices issued by him. 13. We are of the considered view that, in all fairness, and in the interests of justice, the matter in the totality of the facts involved in the present case, merits to be restored to the file of CIT(Exemptions) with a direction to re-adjudicate the same based on a speaking and reasoned order. Needless to say, the CIT(Exemptions) shall in the course of the set aside proceedings, afford a reasonable opportunity of being heard to the assessee trust to place on record the requisite documents as were earlier called for by him vide notice dated 08.10.2024. 14. We thus, in terms of our aforesaid deliberations, set aside the order passed by the CIT(Exemptions) declining the assessee trust’s application for registration u/s 12AB of the Act, to his file with a direction to re-examine the application afresh and pass a speaking and 8 ITA Nos.312 and 313/Hyd/2025 Raising Shakti Foundation reasoned order, after affording a reasonable opportunity of being heard to the assessee trust. 15. Resultantly, the appeal filed by the assessee trust is allowed for statistical purpose. ITA No.312/Hyd/2025 16. We shall now deal with the application filed by the assessee trust against the order passed by the CIT(Exemptions) dated 20.11.2024 declining its application for registration in Form No.10AB under Section 80G of the Act. As the facts and issues involved in the captioned appeal pertaining to the rejection of the assessee's application for registration u/s.80G(5) of the Act, by the CIT(Exemptions) in the absence of the complete details having been filed by the assessee trust, based on a non-speaking and cryptic order, remain the same as were there before us in the assessee trust’s appeal in ITA No. 313/Hyd/2025, therefore, the order therein passed while disposing of the said appeal shall apply mutatis-mutandis for disposing of the captioned appeal i.e., ITA No. 312/Hyd/2025. 17. In view of the above, the impugned order passed by the CIT(Exemption) rejecting the application filed by the assessee trust for registration u/s 80G(5) of the Act, is on the same terms, set aside to his 9 ITA Nos.312 and 313/Hyd/2025 Raising Shakti Foundation file. Needless to say, the CIT(Exemptions) shall in the course of the set- aside proceedings afford a reasonable opportunity of being heard to the assessee trust and shall pass a detailed and speaking order after taking into consideration all the submissions made by the assessee trust. 18. Resultantly, the appeal of the assessee trust in ITA No.312/Hyd/2025 is allowed for statistical purposes in terms of our aforesaid observations. 19. To sum up, both the appeals filed by the assessee trust are allowed for statistical purposes in terms of our aforesaid observations. Order pronounced in the Open Court on 18th July, 2025. Sd /- Sd/- (मिुसूदन सावडिया) (MADHUSUDAN SAWDIA) लेखा सदस्य/ACCOUNTANT MEMBER Sd/- Sd/- (रवीश सूद) (RAVISH SOOD) न्यायिक सदस्य/JUDICIAL MEMBER Sd/- Sd Hyderabad, dated 18.07.2025. TYNM/sps 10 ITA Nos.312 and 313/Hyd/2025 Raising Shakti Foundation आदेशकी प्रतततिति अग्रेतषत/ Copy of the order forwarded to:- 1. तिर्ााररती/The Assessee : Raising Shakti Foundation, Plot No.302, APSFC, MLA Colony, Banjara Hills, Hyderabad – 500045, Telangana. 2. राजस्व/ The Revenue : The Commissioner of Income Tax (Exemption), Hyderabad. 3. The Principal Commissioner of Income Tax (Exemptions), Hyderabad. 4. तवभागीयप्रतततितर्, आयकर अिीिीय अतर्करण, / DR, ITAT, Hyderabad. 5. गार्ाफ़ाईि / Guard file आदेशािुसार / BY ORDER Sr. Private Secretary ITAT, Hyderabad. "