WALTHER PUBLIC SCHOOL SOCIETY,RAMPUR V. CIT EXEMPTION, LUCKNOW

ITA 36/LKW/2025

AI Insights

The case involves Walther Public School Society, which appealed against the decision of the CIT (Exemptions), Lucknow, concerning the rejection of their application for final approval under section 80G of the Income Tax Act. The CIT (Exemptions) had initially granted provisional approval but later rejected the final application due to insufficient documentary evidence proving the genuineness and commencement of charitable activities. The Tribunal found procedural improprieties in the rejection process, particularly the lack of a reasonable opportunity for the assessee to present their case before the CIT (Exemptions) made a decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 43581 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: REVENUE DID NOT EXPRESS ANY OBJECTION; MANU CHAURASIA
• Assessee Lawyers: A. K. THUKRAL
• Keywords: Condonation of delay; Set aside; Principle of natural justice
• Section: 12A; 80G

Judgement Text

"I.T.A. No.36/Lkw/2025 Assessment Year:2014-15 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘B’, LUCKNOW BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.36/Lkw/2025 Assessment Year:2014-15 Walther Public School Society, MAI Rampur, District-Jaunpur. PAN:AAATW0714F Vs. CIT (Exemptions), Lucknow. (Appellant) (Respondent) O R D E R PER ANADEE NATH MISSHRA:A.M. (A) This appeal vide I.T.A. No.36/Lkw/2025 has been filed by the assessee for assessment year 2024-25 against impugned order dated 27/09/2024 (DIN & Notice No.ITBA/EXM/F/EXM45/2024-25/1069175646(1) of CIT (Exemptions), Lucknow. (A.1) The appeal filed by the assessee is beyond the time prescribed u/s 253(3) of Income Tax Act, 1961 (“the Act” for short). The assessee has filed application for condonation of delay duly supported by affidavit; pleading that the delay was unintentional and beyond the control of the assessee and has requested to admit the appeal for hearing. The learned Sr. Departmental Representative for Revenue did not express any objection Appellant by Shri A. K. Thukral, FCA Respondent by Shri Manu Chaurasia, CIT (D.R.) I.T.A. No.36/Lkw/2025 Assessment Year:2014-15 2 to assessee’s application for condonation of delay in filing of the appeal. In view of the foregoing, and being convinced with the pleadings of the assessee, the delay in filing of this appeal is condoned; and the appeal is admitted for hearing. (B) The facts of the case, in brief, are that the assessee institution is enjoying exemption under section 12A of the I. T. Act. The assessee obtained provisional approval under section 80G of the Act by filing application in Form 10A electronically and the necessary approval was also granted. The assessee society applied for final approval u/s 80G of the Act by filing Form-10AB under Rule 17A of the I.T. Rules. The assessee was required to submit a note specifying the main area of charitable/religious activities and a projection/plan for the main charitable/religious activities to be undertaken. The learned CIT (Exemptions) was of the opinion that the assessee has submitted only part reply and has failed to file documentary evidences to prove the genuineness and commencement of its charitable activities and rejected the application for final approval and directed to start proceedings for cancellation of provisional registration granted u/s 80G(5) of the Act. Being aggrieved, the assessee is in appeal before the Income Tax Appellate Tribunal. (B.1) At the time of hearing, the learned Authorized Representative for the appellant assessee submitted that the learned CIT (Exemptions) rejected the applicant’s application without providing reasonable opportunity. He further submitted that the required details were filed by the applicant on 27/09/2024; but the learned CIT (Exemptions) passed his impugned order dated 27/09/2024 on the same day rejecting the application without giving any consideration to the details filed by the applicant, and without even I.T.A. No.36/Lkw/2025 Assessment Year:2014-15 3 acknowledging the receipt of the details in his office, in his impugned order. He submitted that the impugned order of learned CIT (Exemptions) should be set aside with the direction to pass de novo order after providing reasonable opportunity to the assessee and after giving due consideration to the submissions and details filed by the applicant. (B.2) The learned Departmental Representative did not express any objection to the aforesaid submissions, and left the matter to the discretion of the Bench. (B.2.1) We have heard both sides. We have gone through the material placed on record. The action of learned CIT (Exemptions) in rejecting the application without providing reasonable opportunity to the applicant is against the rules of natural justice. Further, the learned CIT (Exemptions) did not give any consideration to details filed by the assessee on aforesaid date of 27/09/2024. Therefore, we set aside the impugned order of learned CIT (Exemptions) with the direction to readjudicate on the above issue after providing reasonable opportunity to the assessee. (D) In the result, the appeal of the assessee stands partly allowed for statistical purposes. (Order was pronounced in the open court on 26/03/2025) Sd/. Sd/. SUDHANSHU SRIVASTAVA) (ANADEE NATH MISSHRA) Judicial Member Accountant Member Dated:26/03/2025 *Singh I.T.A. No.36/Lkw/2025 Assessment Year:2014-15 4 Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., 5. CIT(A) Assistant Registrar "