SWA. NIRANJANLAL AGRAWAL FOUNDATION SAMITI,KHARGONE V. CIT EXEMPTION BHOPAL, BHOPAL

ITA 200/IND/2025

AI Insights

The case involves two appeals by the SWA Niranjanlal Agrawal Foundation Samiti against the orders of the Commissioner of Income-Tax (Exemption), Bhopal, which rejected the foundation's applications for final registration under section 12AB and final approval under section 80G of the Income-tax Act, 1961. The initial rejection was based on the foundation's failure to provide complete information and documents as requested by the CIT(E) in their notices dated 28/10/2024 and 14/11/2024. The tribunal found that the foundation had initially responded but did not comply fully with the subsequent requests for detailed documentation, leading to the rejection of their applications.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777540 (ITAT-INDORE)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2024-2025
• Appeal Filed On: 19-02-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEECARRIEDUSTOONEOFTHETWOORDERSPASSEDBY; FORREVENUESUBMITSTHATHEDOESNOTHAVEANYOBJECTIONIF; SHRIASHISHPORWAL
• Assessee Lawyers: SHRIKULDEEPSAHU
• Keywords: Principle of natural justice
• Section: 80G

Judgement Text

"Page 1 of 4 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.199 & 200/Ind/2025 SWA. Niranjanlal Agrawal Foundation Samiti, 4/1, Khargone H.O. Khargone, West Nimar बनाम/ Vs. CIT(Exemption), Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN: AAUAS1574L Assessee by Shri Kuldeep Sahu, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 24.09.2025 Date of Pronouncement 30.09.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: The captioned two (2) appeals, one relating to registration u/s 12AB and other relating to approval u/s 80G, are filed by assessee against two (2) separate orders both dated 21.12.2024 and both passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”], by which the assessee’s applications for grant of final registration u/s 12AB / final approval u/s 80G of Income-tax Act, 1961 [“the act”] have been rejected and the provisional registration u/s 12AB / provisional approval u/s 80G granted earlier have also been cancelled. Printed from counselvise.com SWA Niranjanlal Agrawal Foundation Samiti ITA No. 199 & 200/Ind/2025 Page 2 of 4 2. Ld. AR for assessee carried us to one of the two orders passed by CIT(E) [since both orders are identical]. The same reads as under: “Annexure (mentioned in row-9 above) A query latter dated 28/10/2024 has been issued to the assessee regarding to furnish all the information/documents on before 11/11/2024. Then assessee society fails to avails the opportunity on the above mentioned date and no reply was furnished. Subsequently a second opportunity was given to the society vide letter dated 14/11/2024 regarding to furnish complete information/documents on or before 22/11/2024. In response to the above notices the assessee society submitted his reply, alongwith documents. During the examination of the Income & Expenditure account for the year ended on 31st March 2023 it is observed that the assessee society received fees of Rs. 11,85,000/- from farmers regarding training and an amount of Rs. 12,88,194/- is debited for Jaivik Agriculture development programme. This specific training programme is found to be commercial in nature, therefore, it is not covered under charitable activities as mentioned in the object of the assessee society. The assessee society does not substantiate the other charitable expenditure debited in the Income & Expenditure account with documentary evidences. Also, it is found that after giving two opportunity the assessee fails to furnish point wise complete information as per original query letter date 28/10/2024. In view of above, due to non-compliance of requisite questionnaire dated 28/10/2024 by the assessee society, the application of the assessee in Form 10AB for grant of registration u/s 12AB & 80G is hereby rejected and provisional registration are also hereby cancelled.” [emphasis supplied] 3. Thus, the Ld. AR submitted that the assessee initially filed reply to CIT(E) which is acknowledged by CIT(E) himself in impugned order. Therefore, the assessee does not have non-compliant attitude. However, Ld. CIT(E) required considered assessee’s reply as incomplete and required further details/documents from assessee and in absence of same dismissed assessee’s applications. Ld. AR asserts in open court that the assessee is ready to file all details/documents as required by CIT(E) and as may be further needed. Therefore, in the interest of justice, one more opportunity be Printed from counselvise.com SWA Niranjanlal Agrawal Foundation Samiti ITA No. 199 & 200/Ind/2025 Page 3 of 4 given to assessee to represent its cases by restoring these matters to the file of CIT(E). 4. Ld. DR for revenue submits that he does not have any objection if these cases are re-stored to CIT(E) but he makes a request to direct the assessee to represent cases before CIT(E) and do not seek unnecessary adjournments. 5. In view of above submissions of parties and having regard to the principle of natural justice, we remand these matters back to the file of CIT(E) for adjudication afresh. The CIT(E) shall give necessary opportunity of hearing to assessee and pass appropriate orders uninfluenced by his earlier orders in any manner. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by CIT(E) and do not seek unnecessary adjournments failing which the CIT(E) shall be at liberty to pass appropriate orders in accordance with law. Ordered accordingly. 6. Resultantly, these appeals are allowed for statistical purpose. Order pronounced in open court on 30/09/2025 Sd/- Sd/- (PARESH M JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 30/09/2025 Printed from counselvise.com SWA Niranjanlal Agrawal Foundation Samiti ITA No. 199 & 200/Ind/2025 Page 4 of 4 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "