SUNITI CHATURBHUJ SOCIAL FOUNDATION,HAJIPUR V. CIT(EXEMPTION), PATNA

ITA 620/PAT/2024

AI Insights

The case involves the Suniti Chaturbhuj Social Foundation, a charitable trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Patna. The Commissioner had rejected the Foundation's application for registration under section 12AB of the Income Tax Act, citing non-prosecution as the reason. The Tribunal noted that the Foundation had not fully complied with the requests for information but decided to remit the case back to the Commissioner for a fresh decision, emphasizing the need for a fair opportunity to be heard.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312799 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Charitable institution
• Section: 80G

Judgement Text

" ITA No. 620/PAT/2024 (A.Y. 2024-2025) Suniti Chaturbhuj Social Foundation 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-PATNA ‘e-COURT’, KOLKATA [Hybrid Court Hearing] Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Sanjay Awasthi, Accountant Member I.T.A. No. 620/PAT/2024 Assessment Year: 2024-2025 Suniti Chaturbhuj Social Foundation,....……Appellant C/o. Gyanendra Priyadarshi, Andarkila, Hajipur, Vaishali-844101, Bihar [PAN:ABHCS4841E] -Vs.- Commissioner of Income Tax (Exemption),.Respondent Patna, 2nd Floor, C.R. Building, Birchand Patel Path, Patna-800001, Bihar Appearances by: Shri Rakesh Kumar, Advocate, appeared on behalf of the assessee Rinku Singh, CIT, D.R., appeared on behalf of the Revenue Date of concluding the hearing: April 24, 2025 Date of pronouncing the order: April 29, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Exemption), Patna dated 21st August, 2024 passed for the assessment year ITA No. 620/PAT/2024 (A.Y. 2024-2025) Suniti Chaturbhuj Social Foundation 2 2024-25 on the application of the assessee filed in Form No. 10AB for registration under clause (iii) of second proviso to sub-section (5) of section 80G and 12AB of the Income Tax Act. In other words, the ld. CIT(Exemption) has rejected the application of the assessee for grant of registration under section 12AB on account of non- prosecution of the application. 2. Brief facts of the case are that the assessee is a Charitable Trust and engaged in various charitable activities. Notices were issued in respect of proceedings under section 80G(5)(iii) of the Act to the address of the assessee mentioned in the Form No. 10AB to produce the copy of Memorandum of Association/Trust Deed for verification and to furnish a detailed reply on the specific information called for in the said notices. In response to the notices, the assessee-Trust submitted partial information only. Thereafter notice dated 25.07.2024 was issued to the assessee as a final opportunity to submit the complete details of beneficiaries, details of registration under FCRA Act, 2010 along with statements of FCRA utilization bank accounts and documents relating to project wise accounts and report submitted to foreign donors agencies, copies of annual accounts and statements of bank accounts with bank ledgers, evidences in support of nature and source of receipts during FY 2020-21 t 2022-23. Evidences in support of nature and purpose of expenditure, etc., but there was no compliance to the notice. 3. The ld. CIT(Exemption) has given several opportunities to the assessee to substantiate its claim, but the appellant neither filed ITA No. 620/PAT/2024 (A.Y. 2024-2025) Suniti Chaturbhuj Social Foundation 3 the written submission nor represented the case before the ld. CIT(Exemption). The ld. CIT(Exemption) passed the ex-parte order dated 21.08.2024 dismissing the appeal of the assessee. 4. Dissatisfied with the decision of the ld. CIT(Exemption), the assessee preferred appeal before the Tribunal. 5. At the time of hearing, ld. Counsel for the assessee prayed before the Bench that the impugned order be set aside and remitted back to the file of ld. CIT(Exemption) for deciding it afresh. 6. The ld. D.R., on the other hand, submitted that the assessee should be more vigilant about its obligation towards prosecuting income tax proceedings. He argued to uphold the order passed by the ld. CIT(Exemption). 7. We have duly considered the rival contentions and gone through the record carefully. The impugned order is ex-parte order wherein application of the assessee for grant of registration under section 12AB have been rejected for want of prosecution. In the interest of justice, we deem it appropriate to set aside the order and remit the issue to the ld. CIT(Exemption) for fresh adjudication. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 29/04/2025. Sd/- Sd/- (Sanjay Awasthi) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 29th day of April, 2025 ITA No. 620/PAT/2024 (A.Y. 2024-2025) Suniti Chaturbhuj Social Foundation 4 Copies to :(1) Suniti Chaturbhuj Social Foundation, C/o. Gyanendra Priyadarshi, Andarkila, Hajipur, Vaishali-844101, Bihar (2) Commissioner of Income Tax (Exemption),Patna, 2nd Floor, C.R. Building, Birchand Patel Path, Patna-800001, Bihar (3) CIT - ; (4) The Departmental Representative; (5) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "