THE BECAN INDIA FOUNDATION TRUST,MURSHIDABAD V. CIT (EXEMPTION), KOLKATA

ITA 274/KOL/2025

AI Insights

The case involves The Becan India Foundation Trust, which appealed against the orders of the Commissioner of Income Tax (Exemption), Kolkata, concerning the denial of registration under section 12A(1)(ac)(iii) of the Income Tax Act. The Trust had initially filed an application for registration, which was met with requests for additional information and documentation, particularly concerning the irrevocability clause in the Trust Deed and details of charitable activities. The Trust failed to respond adequately to these requests, leading to the dismissal of their application as non-maintainable. The ITAT noted the absence of representation or documentation from the Trust during the hearings and decided to remand the case back to the CIT(Exemption) to ensure a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669265 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice

Judgement Text

" ITA Nos. 273 & 274/KOL/2025 The Becan India Foundation Trust 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Rakesh Mishra, Accountant Member I.T.A. Nos. 273 & 274/KOL/2025 The Becan India Foundation Trust,…..……Appellant Satyajaly, Ruppur Kandi, Kandi, Murshidabad, Jemo Rajbati, West Bengal PIN Code No. 742140 [PAN:AADTT7179C] -Vs.- Commissioner of Income Tax (Exemption)..Respondent Kolkata, Income Tax Office, 10B, Middleton Road, Kolkata-700071 Appearances by: N o n e, appeared on behalf of the assessee Shri S.B. Chakraborthy, Addl. CIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: June 17, 2025 Date of pronouncing the order: June 24, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeals are directed at the instance of assessee against the orders of ld. Commissioner of Income Tax (Exemption), Kolkata, both dated 19th December, 2024. ITA Nos. 273 & 274/KOL/2025 The Becan India Foundation Trust 2 2. Brief facts of the cases are that the assessee-Trust filed an application on 26.06.2024 in Form No. 10AB for registration under section 12A(1)(ac)(iii) of the Income Tax Act. Accordingly, vide notice dated 19.10.2024, certain information were sought from the assessee fixing the date for furnish reply on or before 28.10.2024. In response to the notice, the assessee submitted various details along with supporting documents on 28.10.2024. On details verification it was noticed that there is no irrevocability clause in the Trust Deed and the assessee-Trust was requested to furnish the details of charitable activities along with evidence. But no reply was received from the end of assessee in respect to the notice issued vide notice dated 03.12.2024. The ld. CIT(Exemption) has given several opportunities to the assessee-Trust to substantiate its claim, but the appellant did not file the written submissions and did not represent the case before the ld. CIT(Exemption). Thereafter the ld. CIT(Exemption) treated the application for grant of registration under section 12A(1)(ac)(iii) filed by the assessee as non-maintainable and dismissed the appeals ex-parte on 19th December, 2024. 3. On being aggrieved, the assessee preferred appeals before the ITAT. 4. None appeared on behalf of the asseessee-Trust at the time of hearing. 5. At the outset, ld. D.R. brought to our notice that the assessee- Trust did not produce the relevant documents as asked by the ld. ITA Nos. 273 & 274/KOL/2025 The Becan India Foundation Trust 3 CIT(Exemption) during the appellate proceedings. The ld. CIT(Exemption) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. CIT(Exemption). He further submitted that before the ITAT, the assessee did not substantiate its claim. Therefore, he pleaded to uphold the orders passed by the revenue authorities. 6. We have heard the Ld. Departmental Representative and perused the material available on record. Considering the facts and circumstances of the case, we are inclined to set aside the orders passed by the ld. CIT(Exemption) in order to meet the principle of natural justice, and remit the matter back to the file of ld. CIT(Exemption) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Exemption) failing which the Ld. CIT(Exemption) shall be at liberty to pass appropriate orders in accordance with law and merits of the cases, based on the materials available on the record. Thus, the grounds raised by the assessee in both the appeals are allowed for statistical purposes. 7. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 24/06/2025. Sd/- Sd/- (Rakesh Mishra) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 24th day of June, 2025 ITA Nos. 273 & 274/KOL/2025 The Becan India Foundation Trust 4 Copies to :(1) The Becan India Foundation Trust, Satyajaly, Ruppur Kandi, Kandi, Murshidabad, Jemo Rajbati, West Bengal PIN Code No. 742140 (2) Commissioner of Income Tax (Exemption), Income Tax Office, 10B, Middleton Road, Kolkata-700071 (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. "