SREE NIRMALANDA ASHRAM DEVELOPMENT TRUST,HOOGHLY vs. CIT (EXEMPTION), KOLKATA

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ITA 2573/KOL/2025Status: DisposedITAT Kolkata14 August 2026AY 2025-20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal acknowledged the assessee's intention to amend the trust deed to include charitable objects. The matter was remanded to the CIT(E) to consider the amended trust deed and pass a fresh order.

What were the facts?

The assessee trust applied for registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The CIT(E) rejected the application, observing that the trust's stated activities were commercial and lacked charitable objects in the trust deed.

What were the issues?

Whether the trust's activities were charitable in nature and if the trust deed adequately reflected charitable objects for registration purposes.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH,

Before: SHRI YOGESH KUMAR U.S. & SHRI RAKESH MISHRA

For Appellant: Shri S.K. Kmaaluddin, AR
For Respondent: Md. Gayasuddin Ansari, CIT, DR
Hearing: 12.08.2026Pronounced: 14.08.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No.2573/KOL/2025 Assessment Year: 2025-26

Sree Nirmalanda Ashram Vs. CIT (Exemption), Kolkata Development Trust Pandua, Boinchi, Mallikpur, Hooghly, West Bengal-712134 [PAN: ABITS8285N] APPELLANT RESPONDENT Appellant by : Shri S.K. Kmaaluddin, AR Respondent by : Md. Gayasuddin Ansari, CIT, DR Date of hearing : 12.08.2026 Date of Pronouncement : 14.08.2026 O R D E R PER YOGESH KUMAR U.S., JUDICIAL MEMBER:

This Appeal is filed by the Assessee against the order of the Commissioner of Income Tax (Exemption) (‘Ld. CIT(E)’ for short) dated 29.09.2025, wherein the application filed by the Assessee for registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 ('Act' for short) came to be rejected.

2.

Brief facts of the case are that, Assessee filed an application seeking registration u/s 12A(1)(ac)(iii) of the Act. The Assessee claim to have the object to provide help, promote cottage and home base

ITA No.2573/Kol/2025 Sree Nirmalanda Ashram Development Trust; A.Y: 2025-26 industries such as oil pressing, soap-making, carpentry, black smith, jute pressing, agro-industries, paper-making, doll-making, spices & other food processing, production of medicines etc. and works of like nature.

3.

The Ld. CIT(E) observed that the said activities of the Appellant are commercial activities with profit motive and cannot be considered for charitable purpose under the provisions of section 2(15) of the Act. Further observed that in the Trust deed submitted before the Ld. CIT(A), no such object/ purpose which are charitable in nature mentioned. Accordingly, the Ld. CIT(E) rejected the application filed by the Assessee. As against the order of the Ld. CIT(E) dated 29.09.2025, Assessee preferred the present Appeal.

4.

The Learned Counsel for the Assessee submitted that the Assessee intended to amend the Trust deed by mentioning the charitable object of the Trust. Therefore, prayed for remanding the matter to the file of the Ld. CIT(E) with an opportunity to produce the amended Trust deed in order to procure the registration.

5.

Per contra, the Ld. DR relying on the orders of the Ld. CIT(E), sought for dismissal of the Appeal.

ITA No.2573/Kol/2025 Sree Nirmalanda Ashram Development Trust; A.Y: 2025-26 6. We have heard the parties and perused the material available on record. The statement of the Ld. AR that ‘Appellant will be amending the Trust deed and produce the same before the Ld. CIT(E)’ is taken on record. Accordingly, we remand the matter to the file of the Ld. CIT(E) with an opportunity to the Assessee to file amended Trust deed in order to meet the conditions for registration. The Ld. CIT(E) is directed to consider the amended Trust deed to be filed by the Assessee and pass a fresh order on the application filed by the Assessee for registration u/s 12A(1)(ac)(iii) of the Act in accordance with law.

7.

In the result, Appeal of the Assessee is partly allowed for statistical purposes.

Order pronounced on 14.08.2026. Sd/- Sd/- (RAKESH MISHRA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 14.08.2026 DP, PS

ITA No.2573/Kol/2025 Sree Nirmalanda Ashram Development Trust; A.Y: 2025-26 Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //TRUE COPY//

(MANISH BHOI) DEPUTY REGISTRAR KOLKATA BENCHES, KOLKATA

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