SHREE CHANDRALA EDUCATIONAL AND CHARITABLE PUBLIC TRUST,GULBARGA V. COMMISSIONER OF INCOME TAX(EXEMPTIONS), BANGALORE

ITA 631/BANG/2025

AI Insights

The case involves an appeal by Shree Chandala Educational and Charitable Public Trust against the rejection of their application for registration under section 12AB of the Income Tax Act by the CIT (Exemption), Bangalore. The primary contention was that the CIT (Exemption) rejected the application without providing a proper opportunity of hearing to the assessee, despite the lower authorities not doubting the charitable activities of the assessee. The Tribunal noted the procedural lapse in not affording a reasonable opportunity of being heard before the rejection of the application and decided to remit the matter back to the CIT (Exemption) for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772134 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Section 12AB of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: CHIRAG
• Keywords: Opportunity of being heard

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K, JUDICIAL MEMBER ITA No.631/Bang/2025 Assessment Year : 2025-26 Shree Chandala Educational and Charitable Public Trust, Near St Thomas School Laxmi Kung Shahabad, Shahabad Kasaba B.O Shahabad (Rural), Gulbarga – 585 228, Karnataka. PAN : ABATS 9132 J Vs. CIT (Exemption), Bangalore. APPELLANT RESPONDENT Assessee by : Shri. Chirag, CA Revenue by : Shri. Kiran D, CIT(DR)(ITAT), Bangalore. Date of hearing : 11.08.2025 Date of Pronouncement : 28.08.2025 O R D E R Per Laxmi Prasad Sahu, Accountant Member : This is an appeal filed by the assessee against CIT(E)’s Order vide DIN &Letter No: ITBA/COM/F/17/2024-25/107069443(1) dated 27.11.2024 against the rejection of application filed by the assessee for registration under section 12AB of the Act. 2. The learned Counsel reiterated the submissions made before the lower authorities and submitted that the assessee is involved in charitable activity and entire details were submitted before the Jurisdictional AO (JAO) and the JAO and range head have submitted report to the CIT(E). The ld. CIT(E) has rejected the application filed by the assessee in Form No.10AB dated Printed from counselvise.com ITA No.631/Bang/2025 Page 2 of 3 11.07.2024 without giving proper opportunity of hearing to the assessee and the lower authorities have not doubted on the activities of the assessee. The learned DR relied on the Order of the CIT(E) and observation of the AO and range head quoted in the Order. 3. Considering the rival submissions, we noted that the assessee has filed Form No.10AB on 11.07.2024 for registration under section 12AB of the Act and the case was assigned to the JAO for verification. The JAO issued notice and assessee filed reply. The JAO and range head did not recommend for grant of registration to the assessee. However, the Act mandates that before rejecting the application an opportunity should be given to the assessee. As per secton12AB(1)(b)(ii)(B) of the Act “after affording reasonable opportunity of being heard”, we note that the learned CIT(E) has not given any opportunity to the assessee after receipt of the report of the JAO which is clear from the rejection Order. After considering the facts of the case and in the interest of justice, we remit the issue back to the file of CIT(E) for fresh consideration after giving reasonable opportunity of being heard to the assessee and assessee is directed to substantiate its case with cogent materials and is further directed not to seek unnecessary adjournment for early disposal of the case. In case of failure, no second leniency shall be granted to the assessee. Printed from counselvise.com ITA No.631/Bang/2025 Page 3 of 3 4. In the result, appeal filed by the assessee is allowed for statistical purposes. Pronounced in the open court on the date mentioned on the caption page. Sd/ Sd/- Sd/- (SOUNDARARAJAN K) (LAXMI PRASAD SAHU) Judicial Member Accountant Member- Bangalore. Dated: 28.08.2025. /NS/* Copy to: 1. Appellants 2. Respondent 3. DRP 4. CIT 5. CIT(A) 6. DR,ITAT, Bangalore. 7. Guard file By order Assistant Registrar, ITAT, Bangalore. Printed from counselvise.com "