ROTARY BANGALORE ORION GATEWAY TRUST,BENGALURU V. INCOME TAX OFFICER (EXEMPTIONS) WARD 3, BENGALURU

ITA 446/BANG/2025

AI Insights

The case involves the Rotary Bangalore Orion Gateway Trust appealing against the cancellation of its approval under section 80G of the Income Tax Act, 1961 by the CIT(Exemptions), Bangalore. The Trust, which had been granted provisional approval in 2021, failed to respond to notices from the CIT(Exemptions) seeking documentation to substantiate its charitable activities. Consequently, the CIT(Exemptions) cancelled the Trust's approval. The Tribunal found that the CIT(Exemptions) had not provided a final opportunity to be heard before rejecting the application, which constituted a violation of the principles of natural justice. The Tribunal decided to remit the matter back to the CIT(Exemptions) for a fresh decision, allowing the Trust another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774931 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 28-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MURALI MOHAN
• Assessee Lawyers: MAHENDRA
• Keywords: Opportunity of being heard; Principle of natural justice; Charitable institution
• Section: 80G

Judgement Text

"ITA No.446/Bang/2025 Rotary Bangalore Orion Gateway Trust, Rajajinagar IN THE INCOME TAX APPELLATE TRIBUNAL “B’’ BENCH: BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No.446/Bang/2025 Assessment Year: NA Rotary Bangalore Orion Gateway Trust 618, 75th Cross, 6th Block Rajajinagar Karnataka 560 010 PAN NO : AADTR4924P Vs. ITO (Exemptions) Ward 3 Bangalore APPELLANT RESPONDENT Appellant by : Sri Mahendra, A.R. Respondent by : Sri Murali Mohan, D.R. Date of Hearing : 25.06.2025 Date of Pronouncement : 01.09.2025 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(Exemptions) Bangalore dated 4.12.2024 vide DIN & Notice No. ITBA/EXM/F/EXM45/2024-25/1070875708(1) cancelling the approval u/s 80G of the Act of the Income Tax Act, 1961 (in short “The Act”). 2. In this appeal, the assessee has raised the following grounds of appeal:- Printed from counselvise.com ITA No.446/Bang/2025 Rotary Bangalore Orion Gateway Trust, Rajajinagar Page 2 of 5 3. Brief facts of the case are that the assessee is a Public Charitable Trust formed vide registered trust deed dated 08/06/2019. The assessee trust has been granted provisional approval u/s 80G(5) of the Act in Form 10AC dated 23/09/2021 bearing URN- AADTR4924PF20216 which was valid up to assessment year 2024-25. The assessee trust filed application in form 10AB dated 29.06.2024 for final approval u/s 80G(5) of the Act. On receipt of aforesaid application, the ld. CIT(E) granted opportunity Printed from counselvise.com ITA No.446/Bang/2025 Rotary Bangalore Orion Gateway Trust, Rajajinagar Page 3 of 5 of being heard vide notices dated 18.10.2024 and 9.11.2024, wherein the assessee was required to appear before the ld. CIT(E), either in person or through an authorized representative along with the documents/details. However, the assessee had not responded. The CIT(E) was of the view that the assessee was mandated to submit necessary documents to prove the genuineness of the activities of the Trust or institution and fulfillment of all the conditions laid down in clauses (i) to (v) of section 80G of the Act and in the present case, assessee has not responded and failed to appear before CIT(Exemptions) and submit the necessary details/documents called for and hence, the ld. CIT(E) rejected the application filed in form 10AB dated 29/06/2024 for the approval u/s 80G(5) of the Act & Approval was cancelled. 4. Aggrieved by the order of ld. CIT(E) dated 04/12/2024, the assessee filed the present appeal before this Tribunal. The assessee has also filed written submission along with the copy of minutes of meetings of the board, proof of charitable activities along two orders of the coordinate bench of the ITAT relied on by the assessee. 5. Before us, the ld. A.R. of the assessee submitted that the ld. CIT(E) hastily & mechanically passed the order cancelling the approval u/s 80G(5) of the Act without providing sufficient opportunity of being heard to the assessee which is a gross violation of the principles of natural justice and accordingly prayed to grant one more opportunity before the ld. CIT(E) to substantiate its claim. 6. Ld. D.R. on the other hand relied on the order of ld. CIT(E) and submitted that the assessee in very callous in the proceedings before the ld. CIT(E). Printed from counselvise.com ITA No.446/Bang/2025 Rotary Bangalore Orion Gateway Trust, Rajajinagar Page 4 of 5 7. We have heard the rival submissions and perused the materials available on record. On going through the annexure attached to Form No.10AD dated 04/12/2024, we take note of the fact that the ld. CIT(E) Bangalore has rejected the application for approval on the sole ground that the assessee has not filed any reply/documents in response to hearing notices dated 18/10/2024 & 09/11/2024. We also observe that the ld. CIT(E) failed to provide a final opportunity of being heard before rejecting the application which in our opinion is a gross violation of the principles of natural justice Before us, the ld. A.R. of the assessee submitted that in June, 2024, the trust underwent its scheduled annual changeover of the office bearers. However due to an inadvertent lapse in internal coordination arising from the Trust’s annual transition of leadership, these notices could not be timely acted upon. Further, before us, the ld. A.R. of the assessee submitted that one more opportunity may be granted to the assessee trust to represent its case before the ld. CIT(E) for fresh consideration. This being so, in the interest of justice and fair play and as requested by the ld. A.R. of the assessee, we deem it fit and proper to remit the entire issue in dispute to the file of ld. CIT(E) to decide afresh in accordance with law. Needless to say, a reasonable opportunity of being heard must be granted to the assessee. At the same time, we also direct the assessee to produce/submit all the necessary details/documents/record/ financials/reports in support of its claim. We make it clear that in case of further default, the assessee shall not be entitled for any leniency. It is ordered accordingly. Printed from counselvise.com ITA No.446/Bang/2025 Rotary Bangalore Orion Gateway Trust, Rajajinagar Page 5 of 5 8. In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 1st Sep, 2025 Sd/- (Waseem Ahmed) Accountant Member Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated 1st Sep, 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. Printed from counselvise.com "