RAMA KRISHNA FOUNDATION,HARYANA V. CIT EXEMPTIONS, CHANDIGARH, HARYANA

ITA 3157/DEL/2024

AI Insights

The case involves M/s. Rama Krishna Foundation, a public charitable and religious trust, appealing against the decision of the Commissioner of Income Tax (Exemption), Chandigarh, which denied them registration under section 12AB of the Income Tax Act. The trust argued that their activities qualify under both charitable and religious categories, contrary to the CIT(E)'s classification of them solely as a religious trust. The Tribunal found merit in the trust's arguments and restored the matter to the CIT(E) for a fresh evaluation. Additionally, the appeal related to the denial of exemption under section 80G was also restored, linking it to the outcome of the section 12AB registration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34023 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: RAKESH GUPTA; CATEGORIZING
• Section: 22; 80G

Judgement Text

"ITA No. 3157 &3158/Del/2024 M/s. Rama Krishna Foundation Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No. 3157 &3158/Del/2024 M/s. Rama Krishna Foundation, 1045, Sector-8, Faridabad, Sector- 7, SO Faridabad, Haryana-121 006 Vs. CIT(Exemption), Chandigarh (Appellant) (Respondent) PAN: AACTR6992G Assessee by : Dr. Rakesh Gupta, Adv Shri Somit Agarwal, Adv Revenue by: Ms. Suman Malik, CIT DR Date of Hearing 14/01/2025 Date of pronouncement 29/01/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.3157 & 3158/Del/2024, arises out of the order of the ld Commissioner of Income Tax (Exemption), Chandigarh [hereinafter referred to as ‘ld. CIT(E)’, in short] dated 18.03.2024. 2. At the outset, we find that there is a delay in filing of appeals by the assessee by 58 days. The assessee had filed a condonation petition on 28- 11-2024. Considering the reasons adduced in the condonation petition, we are inclined to condone the delay in filing of appeals by the assessee and admit the appeals for adjudication. 3. The appeal in ITA No. 3158/Del/2024 is against the denial of registration under section 12AB of the Act. ITA No. 3157 &3158/Del/2024 M/s. Rama Krishna Foundation Page | 2 4. We have heard the rival submissions and perused the materials available on record. The assessee is a public charitable and religious trust. The assessee sought for registration by categorizing its activities to fall both under religious as well as charitable activities. The learned CIT (E) granted registration under section 12AB of the Act to the assessee by categorizing the assessee as a religious trust. The assessee drew our attention to Form No. 10AB, which is enclosed in page 1 of the paper book seeking registration under section 12AB of the Act, wherein it had been very clearly mentioned that assessee had sought registration by categorizing itself as both charitable cum religious trust. The assessee had also filed detailed reply before the learned CIT(E) which are enclosed in pages 21 to 22 of the paper book. The objects of the trust are enclosed in pages 30 to 33 of the paper book, on perusal of which, it is very clear that the objects proposed to be carried out by the assessee trust fall under the activities of both religious as well as charitable. The learned CIT(E) without appreciating all these primary basic facts which are staring on us, grossly erred in categorizing assessee only as a religious trust. In view of the same, we deem it fit and appropriate, in the interest of justice and fair play, to restore this appeal to the file of learned CIT(E) for de novo adjudication in accordance with law. Accordingly, the grounds raised by the assessee in ITA No. 3158 / Del / 2024 are allowed for statistical purposes. 5. Since the denial of registration under section 12AB of the Act is restored to the file of learned CIT(E), the other appeal in ITA No. 3157 / Del / 2024 denying exemption under section 80G of the Act would also have to be restored to the file of learned CIT(E) as it is consequential. ITA No. 3157 &3158/Del/2024 M/s. Rama Krishna Foundation Page | 3 6. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 29/01/2025. -Sd/- -Sd/- (VIKAS AWASTHY) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:29/01/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "