SRI AMBHA MAHESHWARI DEVALAYA SEVA SAMITI,BANGALORE V. COMMISSIONER OF INCOME TAX EXEMPTIONS, BANGALORE

ITA 599/BANG/2025

AI Insights

The case involves the Sri Ambha Maheshwari Devalaya Seva Samiti, a trust based in Bangalore, which appealed against the cancellation of its registration under section 12AB and approval under section 80G of the Income Tax Act by the CIT(Exemptions), Bangalore. The Tribunal found that the CIT(Exemptions) had not provided adequate opportunity for the trust to present its case, which constituted a violation of the principles of natural justice. Consequently, the Tribunal decided to remit the matter back to the CIT(Exemptions) for a re-evaluation, instructing that the trust be given a fair chance to submit necessary documents and arguments.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633068 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRAVEENA S.
• Assessee Lawyers: ABHISHEK
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 80G

Judgement Text

"ITA No.598&599/Bang/2025 Sri Ambha Maheshwari Devalaya Seva Samiti, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “A’’BENCH: BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA Nos.598 & 599/Bang/2025 AssessmentYears:NA Sri Ambha Maheshwari Devalaya Seva Samiti 57/3, Magadi Main Road Kamakshi Palya Bangalore North Kamakshipalya SO Bangalore 560 079 Karnataka PAN NO : ABZAS5189H Vs. ITO Ward 3(2)(1) Bangalore APPELLANT RESPONDENT Appellant by : Sri Abhishek, A.R. Respondent by : Smt. Praveena S., D.R. Date of Hearing : 02.06.2025 Date of Pronouncement : 09.06.2025 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: These appeals at the instance of the assessee are directed against the order of the ld. CIT(Exemptions),Bangalore both dated 29.01.2025 vide DIN & Notice No. ITBA/EXM/F/EXM45/2024- 25/1072655279(1) cancelling the registration u/s 12AB of the Income Tax Act, 1961 (in short “The Act) and vide DIN & Notice No. ITBA/EXM/F/F/EXM45/2024-25/1072655355(1) cancelling the approval u/s 80G of the Act. 2. First, we take up ITA No.598/Bang/2025 for adjudication. In this appeal, the assessee has raised the following grounds of appeal: ITA No.598 & 599/Bang/2025 Sri Ambha Maheshwari Devalaya Seva Samiti, Bangalore Page 2 of 5 3. Brief facts of the case are that on receipt of application in Form 10AB dated 06.08.2024 for final registration u/s 12AB of the Act, the ld. CIT(E) granted opportunity of being heard to the assessee trust to appear along with documents/details. 3.1 Further, the ld. CIT(E) observed that the assessee is required to submit necessary documents to prove the genuineness of the activity of the trust or institution and also the compliance of such ITA No.598 & 599/Bang/2025 Sri Ambha Maheshwari Devalaya Seva Samiti, Bangalore Page 3 of 5 requirements of any other law as are material for the purpose of achieving its objects. 3.2 Since in the present case, the assessee had not responded to the notices issued & failed to appear and submit all the necessary documents/details as required for registration u/s 12AB of the Act and hence the ld. CIT(E) rejected the application filed in form 10AB dated 06/08/2024 and cancelled the registration. 4. Aggrieved by the order of ld. CIT(E), the assessee has filed the present appeal before this Tribunal. 5. Before us, ld. A.R. of the assessee vehemently submitted that the ld. CIT(E) erred in not providing the opportunity of being heard which is a gross violation of principles of natural justice. Further, ld. CIT(E) without issuing final show cause notice rejected the application which is illegal and bad in law. 6. Ld. D.R. on the other hand relied on the order of ld. CIT(E). 7. We have heard the rival submissions and perused the materials available on record. On going through the order of ld. CIT(E), we find that as the assessee could neither appear nor responded to any of the notices issued for the purposes of granting registration u/s 12AB of the Act, and accordingly, the ld. CIT(E) rejected the application filed in form 10AB dated 6.8.2024. Further before us, the ld. A.R. of the assessee vehemently submitted that the ld. CIT(E), without issuing show cause notice proposing to reject the application made and without granting opportunity of being heard rejected the application of the assessee and accordingly prayed that one more opportunity may be granted before the ld. CIT(E) to represent its case. This being so, in the interest of justice ITA No.598 & 599/Bang/2025 Sri Ambha Maheshwari Devalaya Seva Samiti, Bangalore Page 4 of 5 and fair play and as requested by the ld. A.R. of the assessee, we deem it fit to remit the entire issue in dispute to the file of ld. CIT(E) to decide afresh in accordance with law after giving reasonable opportunity of being heard to the assessee. The assessee is also directed to produce all the documents/records/information/ financials/reports in support of its claim or as required by ld. CIT(E) for granting the final registration. It is ordered accordingly. 8. In the result, appeal filed by the assessee in ITA No.598/Bang/2025 is partly allowed for statistical purposes. 9. Now we take up ITA No.599/Bang/2025, wherein the assessee has raised following grounds of appeal: 10. Since we have remitted the entire issue of registration u/s 12AB of the Act to the file of ld. CIT(E), we also deem it fit & proper to remit this issue of approval u/s 80G of the Act to the file of ld. CIT(E) to decide afresh in accordance with law as in the present case also the assessee had not submitted any documents/record to ITA No.598 & 599/Bang/2025 Sri Ambha Maheshwari Devalaya Seva Samiti, Bangalore Page 5 of 5 prove the genuineness of the activities of the trust and fulfillment of all the conditions laid down in clause (i) to (v) of Section 80G of the Act. 11. In the result, appeal filed by the assessee in ITA No.599/Bang/2025 is partly allowed for statistical purposes. 12. In the combined result, both the appeals filed by the assessee are partly allowed for statistical purposes. Order pronounced in the open court on 9th June, 2025 Sd/- (Prashant Maharishi) Vice President Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated 9th June, 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. "