SADGURU KABIR SAMAJSEVI SANSTHA SAMITI,UJJAIN V. CIT EXEMPTION, BHOPAL

ITA 605/IND/2024

AI Insights

The case involves Sadguru Kabir Samajsevi Sanstha Samiti, a charitable society, which appealed against the decision of the CIT Exemption, Bhopal, rejecting their application for registration under Section 12AB of the Income Tax Act, 1961. The rejection was primarily due to the non-submission of complete details of donations received in the past three financial years, which was necessary to verify their eligibility for registration under the said section. The Tribunal noted the absence of the assessee's representative during the hearing but proceeded with the help of the Departmental Representative. The Tribunal decided to remand the case back to the CIT Exemption, emphasizing the need for a reasonable opportunity for the assessee to be heard and to comply with the documentation requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34637 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHISH PORWAL
• Keywords: Set aside; Opportunity of being heard

Judgement Text

"Page 1 of 6 आयकर अपीलीय अिधकरण, इंदौर Ɋायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI BHAGIRATH MAL BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M JOSHI, JUDICIAL MEMBER ITA No. 605/Ind/2024 Sadguru Kabir Samajsevi Sanstha Samiti, Kadai, Rupakhedi Tarana, Ujjain बनाम/ Vs. CIT Exemption, Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN: AAXAS3233R Assessee by None Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 10.03.2025 Date of Pronouncement 11.03.2025 आदेश / O R D E R Per Paresh M Joshi, J.M.: This is an appeal filed by the Assessee Under Section 253 of the Income Tax Act, 1961 (hereinafter referred to as the Act for sake of convenience and ease) before this Tribunal. The assessee is aggrieved by order bearing Number ITBA/EXM/F/ EXM45/2024-25/1066659815(1) dated 12.07.2024 passed by CIT, Exemption, Bhopal Under Section 12AB(I)(b)(ii) of the Act Sadguru Kabir Samajsevi Sanstha Samiti ITA No. 605/Ind/2024 Page 2 of 6 which is hereinafter referred to as the “Impugned order”. Delay of 25 days is pointed out by the Registry. No representative of the assessee was present when the case was called for. However the case was taken up for hearing with the help of Ld. DR and grounds of appeal raised by the assessee. The Ld. DR has fair enough not to object for condonation of delay. Delay condoned. Appeal taken for hearing. 2. FACTUAL MATRIX 2.1 That the assessee is a charitable society applied in Form 11AB for registration u/s 12AB under the provisions of Income Tax Act, 1961. Assessee has been served with notices dated 17.05.2024 and 21.06.2024 vide which various documents were called from the assessee to process and verify the eligibility of the assessee for registration u/s 12AB of the Act. No response to these notices received from the assessee. Thereafter a final notice dated 01.07.2024 was served to the assessee and the assessee duly replied to it during the proceedings. It was observed by the Department during the proceedings that the assessee did not submit the complete details of donation received during last three Sadguru Kabir Samajsevi Sanstha Samiti ITA No. 605/Ind/2024 Page 3 of 6 financial year accordingly the same was requisitioned from the assessee vide notices dated 17.05.2024 and 21.06.2024. In the absence of any reply the genuiness of the funds of the assessee could not be verified. In view of the above reasons and compulsory provisions of the Act the registration u/s 12AB was rejected. 2.2 That the assessee being aggrieved by the impugned order has filed an appeal before this Tribunal and has raised following grounds of appeal against the impugned order in Form 36 which are as under:- “1. The application for permanent registration u/s 12AB is denied by Hon CIT Exemptions by mentioning that genuineness of donation received could not be verified and order for rejection u/s 12AB has been issued without giving reasonable opportunity of being heard which is not justified.” 3. Record of Hearing 3.1 The hearing in the matter took place before this Tribunal on 10.03.2025 nobody on behalf f the assessee appeared before us. However the case was heard with the help of Ld. DR and on the basis of grounds of appeal. Sadguru Kabir Samajsevi Sanstha Samiti ITA No. 605/Ind/2024 Page 4 of 6 3.2 Per contra Ld. DR fairly conceded that a last opportunity be given to the assessee to submit requisite details to the Department and the matter may be remanded to Ld. CIT Exemption for adjudication afresh. 4. Observations,findings & conclusions. 4.1 We now examine the legality, validity and the proprietary of the “Impugned Order” basis records of the case. 4.2 We have carefully perused records of the case and have heard contention of Ld.DR. 4.3 We observe that the application of the assessee for registration U/s 12AB of the Act was rejected by Ld. CIT Exemption. The assessee prayed in the grounds of appeal for giving reasonable opportunity of being heard for presenting the case. We observe that prior to the passing of the “Impugned Assessment Order” the Ld. CIT Exemption had followed due process as required under rules. The assessee despite of opportunities have remained non complaint for reasons best known to him. The Ld. CIT Exemption finally rejected the application for registration u/s 12AB. Sadguru Kabir Samajsevi Sanstha Samiti ITA No. 605/Ind/2024 Page 5 of 6 4.4 We basis records of the case before us are of the considered view that the matter may be remanded to Ld. CIT Exemption for considering the application afresh and reasonable opportunity of being heard may be given to the assessee for presenting the requisite records. The assessee should comply to the notices of Ld. CIT Exemption promptly and should not seek unnecessary adjournment until and unless warranted. 5. Order 5.1 In the premises set out herein above the impugned order is set aside as and by way of Remand on Denovo basis. 5.2 In result appeal of assessee is allowed for statistical purpose. Order pronounced in open court on 11.03.2025. Sd/- Sd/- (BHAGIRATH MAL BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore िदनांक /Dated : 11/03/2025 Dev/Sr. PS Copies to: (1) The appellant Sadguru Kabir Samajsevi Sanstha Samiti ITA No. 605/Ind/2024 Page 6 of 6 (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Assistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore "