SRI KOKKESHWARA EDUCATIONAL AND CHARITALBE TRUST ,BENGALURU V. INCOME TAX OFFICER, (EXEMPTIONS)WARD-3, BANGALORE

ITA 1537/BANG/2025

AI Insights

The case involves the Sri Kokkeshwara Educational and Charitable Trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Bangalore, rejecting their application for registration under section 12AB of the Income Tax Act, 1961. The rejection was based on non-compliance with notices. The Trust argued that the delay in responding to the notices was due to the negligence of their staff accountant, who failed to communicate with the Chartered Accountant. The Tribunal found sufficient cause for the delay in filing the appeal and condoned it, allowing the appeal for statistical purposes and remanding the case for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784767 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 11-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUTHUSHANKAR
• Assessee Lawyers: SIVA PRASAD REDDY
• Keywords: Set aside; Period of limitation; Principle of natural justice; Charitable institution; Time period of passing order
• Section: 12A

Judgement Text

"ITA No.1537/Bang/2025 Sri Kokkeshwara Educational and Charitable Trust, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “B’’ BENCH: BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA No.1537/Bang/2025 Assessment Year: NA Sri Kokkeshwara Educational and Charitable Trust No.250/15, Ground Floor 6th Cross, 9th Main, 2nd Block Jayanagar Bengaluru 565 757 PAN NO : AAPT5636M Vs. ITO (Exemptions) Ward-3 Bangalore APPELLANT RESPONDENT Appellant by : Sri Siva Prasad Reddy, A.R. Respondent by : Sri Muthu Shankar, D.R. Date of Hearing : 13.11.2025 Date of Pronouncement : 14.11.2025 O R D E R PER SANDEEP SINGH KARHAIL, JUDICIAL MEMBER: The assessee has filed the present appeal challenging the impugned order dated 17.12.2024, passed by the learned Commissioner of Income Tax (Exemptions) –Bangalore, [“learned CIT(E)”], rejecting the application filed by the assessee in Form 10AB for seeking registration under section 12AB of the Income Tax Act, 1961, (“the Act”). 2. The present appeal is delayed by 146 days. Along with the appeal, the assessee has filed an application seeking condonation of the delay in filing the present appeal. As per the assessee, the management had entrusted the responsibility of attending to the income tax matters to its staff accountant, who was instructed to take advice from the Chartered Accountant. Subsequently, it was Printed from counselvise.com ITA No.1537/Bang/2025 Sri Kokkeshwara Educational and Charitable Trust, Bangalore Page 2 of 4 noticed that the accountant neither replied to the notices nor forwarded the notices to the Chartered Accountant of the assessee trust. During the audit of the books of account for the financial year 2024-25, it was noticed that the assessee’s application for regularization of the registration under section 12A of the Act has been rejected for non-compliance of the notices issued by the learned CIT(E). It is further submitted that thereafter, the management of the assessee trust took necessary steps for filing the present appeal before the Tribunal. Accordingly, it is prayed that the delay in filing the present appeal is not intentional and the assessee does not stand to benefit from such delay. 3. Having considered the submissions and perused the material available on record, we are of the considered view that there was sufficient cause which prevented the assessee from filing the present appeal within the prescribed limitation period. Accordingly, the delay in filing the present appeal is condoned, and we proceed to hear the appeal on the merits. 4. In this appeal, the assessee has raised the following grounds: - 1. The impugned order dated 17.12.2024 passed u/s 12AB of the Act is void and liable to be set aside as it is passed in haste violating the principles of natural justice and opposed to the facts of the case. 2. The ld. CIT (Exemptions) erred in rejecting registration u/s 12AB of the Act. 3. Without prejudice, the Hon’ble Tribunal may be pleased to direct the ld. CIT (Exemptions) to treat the subject application u/s 12A as withdrawn and not rejected. 4. The appellant craves leave to add or delete or modify or revise any ground at the time of hearing before the Hon’ble Tribunal. Printed from counselvise.com ITA No.1537/Bang/2025 Sri Kokkeshwara Educational and Charitable Trust, Bangalore Page 3 of 4 5. Having considered the submissions and perused the material available on record, it is evident from the record that the learned CIT(E) rejected the application filed by the assessee under section 12AB of the Act due to non-compliance with notices. As noted in the foregoing paragraphs, it is the plea of the assessee that its accountant, who was entrusted by the management to attend to the income tax proceedings and was instructed to take advice from the Chartered Accountant, neither replied to the notices issued by the learned CIT(E) nor forwarded the same to the Chartered Accountant. 6. In the light of the facts and circumstances of the present case, we are of the considered view that, in the interest of justice, the assessee be hereby granted one more opportunity to represent its case before the learned CIT(E). Accordingly, we deem it appropriate to restore the application filed by the assessee in Form 10AB for seeking registration under section 12AB of the Act to the file of the learned CIT(E) for de novo adjudication as per law after providing the reasonable and adequate opportunity of hearing to the assessee. The assessee is also directed to furnish all the information as may be sought by the learned CIT(E) without any default in support of its claim of seeking registration under section 12AB of the Act. With the above directions, the impugned order is set aside, and the grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 14th Nov, 2025 Sd/- (Prashant Maharishi) Vice President Sd/- (Sandeep Singh Karhail) Judicial Member Bangalore, Dated 14th Nov, 2025. VG/SPS Printed from counselvise.com ITA No.1537/Bang/2025 Sri Kokkeshwara Educational and Charitable Trust, Bangalore Page 4 of 4 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 "