ROTARY CALCUTTA MAHANAGAR TRUST,KOLKATA V. CIT (EXEMPTION), , KOLKATA

ITA 2659/KOL/2024

AI Insights

The case involves the Rotary Calcutta Mahanagar Trust, a charitable society, which appealed against the orders of the Commissioner of Income Tax (Exemption), Kolkata. The Commissioner had rejected the Trust's application for registration under sections 80G and 12A of the Income Tax Act, citing non-prosecution as the reason. The Trust had failed to respond to multiple notices from the Commissioner, leading to the ex-parte decision. Dissatisfied with this decision, the Trust appealed to the Income Tax Appellate Tribunal, which decided to remit the case back to the Commissioner for a fresh decision, emphasizing the need for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126900 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Remitted; Dismissed; HRA; Commissioner; Commissioner of Income Tax; Statistical purposes; Exempt; Department
• Section: 12A; 80G

Judgement Text

" ITA Nos. 2658 & 2659/KOL/2024 Rotary Calcutta Mahanagar Trust 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Rakesh Mishra, Accountant Member I.T.A. Nos. 2658 & 2659/KOL/2024 Rotary Calcutta Mahanagar Trust,.……..……Appellant C/o. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite–213, 2nd Floor, Kolkata-700069 [PAN:AAATR6898K] -Vs.- Commissioner of Income Tax (Exemption),.Respondent Kolkata, Income Tax Office, 10B, Middleton Road, Kolkata-700071 Appearances by: Shri Siddarth Agarwal, Advocate, appeared on behalf of the assessee Shri Praveen Kishore, CIT, D.R., appeared on behalf of the Revenue Date of concluding the hearing: April 07, 2025 Date of pronouncing the order: April 24, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- Both the appeals are directed at the instance of assessee against the orders of ld. Commissioner of Income Tax (Exemption), Kolkata both dated 30th November, 2024 passed on the application of the assessee filed in Form No. 10AB for registration under clause (iii) of second proviso to sub-section (5) of section 80G and 12A of ITA Nos. 2658 & 2659/KOL/2024 Rotary Calcutta Mahanagar Trust 2 the Income Tax Act. In other words, the ld. CIT(Exemption) has rejected the application of the assessee for grant of registration under section 12A(1)(ac)(iii) on account of non-prosecution of the application. 2. Brief facts of the case are that the assessee is a Charitable Society and engaged in various charitable activities. Notice dated 23.10.2024 was issued to the assessee through ITBA fixing the hearing on 29.10.2024, but there was no compliance to the notice. Again, notice was issued to the assessee on 13.11.2024 fixing the date of hearing on 18.11.2024, but again no reply was received from the assessee. 3. The ld. CIT(Exemption) has given several opportunities to the assessee to substantiate its claim, but the appellant did not file the written submissions and did not represent the case before the ld. CIT(Exemption). Thereafter the ld. CIT(Exemption) dismissed both the appeals ex-parte on 30.11.2024 4. Dissatisfied with the decision of the ld. CIT(Exemption), the assessee preferred appeals before the Tribunal. 5. At the time of hearing, ld. Counsel for the assessee prayed before the Bench that the impugned orders be set aside and remitted back to the file of ld. CIT(Exemption) for deciding it afresh. 6. The ld. D.R., on the other hand, submitted that the assessee should be more vigilant about its obligation towards prosecuting ITA Nos. 2658 & 2659/KOL/2024 Rotary Calcutta Mahanagar Trust 3 income tax proceedings. He argued to uphold the orders passed by the ld. CIT(Exemption). 7. We have duly considered the rival contentions and gone through the record carefully. The impugned orders are ex-parte orders wherein application of the assessee for grant of registration under section 12A has been rejected for want of prosecution. In the interest of justice, we deem it appropriate to set aside these orders and remit the issue to the ld. CIT(Exemption) for fresh adjudication. 8. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 24/04/2025. Sd/- Sd/- (Rakesh Mishra) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 24th day of April, 2025 Copies to :(1) Rotary Calcutta Mahanagar Trust, C/o. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite–213, 2nd Floor, Kolkata-700069 (2) Commissioner of Income Tax (Exemption), Kolkata, Income Tax Office, 10B, Middleton Road, Kolkata-700071 (3) CIT - ; ITA Nos. 2658 & 2659/KOL/2024 Rotary Calcutta Mahanagar Trust 4 (4) The Departmental Representative; (5) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "