SRI SANKARA CHARITABLE TRUST,KOZHIKODE V. CIT(EXEMPTION), KOCHI

ITA 61/COCH/2025

AI Insights

The case involves Sri Sankara Charitable Trust, which appealed against the decision of the CIT(Exemption), Kochi, denying their application for permanent registration under section 80G of the Income Tax Act. The CIT(Exemption) had initially rejected the application on the grounds that the trust's activities, which focus on 'Sanathana Dharma and Vedanta', are religious in nature and thus not eligible for the benefits under section 80G. The Tribunal found that the CIT(Exemption) had erred in rejecting the application without providing sufficient opportunity to the assessee to present their case or consider their submissions adequately.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633706 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SURESH SIVANANDAN IRS
• Keywords: Set aside; Opportunity of being heard; Charitable institution
• Section: 11; 12A; 12; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member & Shri Sonjoy Sarma, Judicial Member ITA No.61/Coch/2025 Assessment Years: 2025-26 Sri Sankara Charitable Trust Advaithashramam, Kolathur, Atholi, Kozhikode-673315. PAN : AAETS4986P. v. CIT(Exemption), Kochi (Appellant) (Respondent) Appellant by : None Respondent by : Shri Suresh Sivanandan IRS, CIT-DR Date of Hearing : 03.06.2025 Date of Pronouncement : 11.06.2025 O R D E R Per Sonjoy Sarma: The present appeal has been preferred by the assessee against an order dated 29.08.2024 of the CIT(Exemption), Kochi [hereinafter referred to as ‘CIT(E)’] denying the assessee’s application for permanent registration u/s 80G of the Act. 2. Brief facts of the case are that the assessee is a charitable trust registered u/s 12A vide registration certificate dated 31.12.2012. The assessee also got provisional approval u/s 80G vide certification dated 06.09.2023 and availed exemption u/s 11 & 12 of the Act. The ld. CIT(E) rejected the permanent approval u/s 80G of the Act on the ground that the activity of trust is not a ITA No.61/Coch/2025 Sri Sankara Charitable Trust 2 religious activity without providing sufficient opportunity to the assessee. 3. The CIT(E) rejected the application in Form 10AB filed for registration u/s 12A observing as under: “Based on the facts as above, it is clear that \"Vedanta and sanathana dharma\" intrinsic Components of Hindu religion and exclusively practiced by its followers. Therefore, the interpretations of the terms\" Sanathana Dharma and Vedanta\" by the assessee are not factual and irrelevant which cannot be considered. Further in the reply of assessee, they are not denying the fact that the main aim of their activities are to spread sanathana dharma and Vedanta. 8. Further, it is noted that applicant has not given any comprehensive or logical reply to the absence of mandatory clauses in the trust deed quoted in Para 3 and there is no evidence of any action taken for the incorporation of the same in the trust deed. 10. In view of the above discussed grounds, the present application in Form 10AB filed under clause (iii) of first proviso to sub-section (5) of section 80G of the I. T. Act by the applicant is rejected.” 4. No one has appeared on behalf of the assessee despite serving notice. We proceed to adjudicate the case after hearing the ld. DR and perusing the materials on record. 5. After hearing the ld. DR and going through the records , we find that the ld. CIT(E) erred in rejecting the permanent approval u/s 80G of the Act without providing sufficient opportunity to the assessee and also without considering the submissions or documents submitted by the assessee. Therefore, in the interests of justice, we set aside the order of the ld. CIT(E) and remand the matter back to the file of the ld. CIT(E) for fresh adjudication in accordance with law after considering the documents or giving sufficient opportunity of being heard to the assessee. ITA No.61/Coch/2025 Sri Sankara Charitable Trust 3 6. In terms of the above, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 11.06.2025. Sd/- (Inturi Rama Rao) Sd/- (Sonjoy Sarma) Accountant Member Judicial Member Cochin, Dated: 11.06.2025. RS Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT(A), Concerned. 4. The CIT Concerned. 5. The DR, ITAT, Cochin. 6. Guard File. Asst. Registrar/ITAT, Cochin "