KAPILA PARK,MANGALORE vs. COMMISSIONER OF INCOME TAX, BENGALURU

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ITA 898/BANG/2026Status: DisposedITAT Bangalore27 May 2026AY 2026-273 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee has since rectified the defect by executing and registering the lease deed. Therefore, in the interest of justice, the matter was restored to the CIT(E) for fresh adjudication.

What were the facts?

The assessee applied for registration under Section 80G, submitting an unregistered lease agreement for land used for charitable objects. The CIT(E) rejected the application due to doubts about the leasehold title and lack of a registered deed.

What were the issues?

Whether an unregistered lease agreement is sufficient for Section 80G registration, and if a subsequently registered deed can cure the defect.

Which sections of the Income-tax Act were involved?

Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, BANGALORE

Before: SHRI WASEEM AHMED & SHRI SOUNDARARAJAN K

For Appellant: Shri Krishna, CA
For Respondent: Shri Shivanand H Kalakeri, CIT (DR)
Hearing: 26.05.2026Pronounced: 27.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K, JUDICIAL MEMBER

ITA No.898/Bang/2026 Assessment Year: -----

Kapila Park, The Commissioner of Income Vs. 3-1/2 Kenjar Village and Post, Tax (Exemptions), Kenjar, Bengaluru. Mangaluru. PAN – AAETK 3315 J APPELLANT RESPONDENT Assessee by : Shri Krishna, CA Revenue by : Shri Shivanand H Kalakeri, CIT (DR) Date of hearing : 26.05.2026 Date of Pronouncement : 27.05.2026 O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER:

The present appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Exemptions), Bengaluru [hereinafter referred to as “ld. CIT(E)”], dated 19.12.2025.

2.

In the present case, the assessee filed an application in Form No. 10AB dated 19.06.2025 seeking registration under section 80G of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). During the course of proceedings, it was submitted that the assessee had acquired a

ITA No.898/Bang/2026 Page 2 of 3

piece of land on leasehold basis and had undertaken construction activities thereon for carrying out its charitable objects. In support of its claim over the leasehold land, the assessee furnished a unregistered agreement dated 21.04.2022, which was executed on a stamp paper of Rs. 200/- only. Upon considering the unregistered agreement furnished by the assessee in respect of the leasehold land, the ld. CIT(E) had doubts regarding the ownership, leasehold title, and enforceable rights in favour of the assessee about the land. Accordingly, in the absence of a duly executed and registered lease deed, the ld. CIT(E) rejected the application for registration filed by the assessee under section 80G of the Act.

3.

Being aggrieved by the aforesaid order of the ld. CIT(E), the assessee is in appeal before us. The learned Authorised Representative (ld. AR) submitted that the assessee has now duly executed and registered the lease deed, which conclusively establishes its legal and undisputed right over the land intended to be utilised for charitable purposes. Accordingly, the ld. AR prayed that the matter may be restored to the file of the ld. CIT(E) for fresh adjudication in accordance with law.

4.

On the other hand, the learned Departmental Representative (ld. DR), considering the submissions advanced on behalf of the assessee, raised no objection to restoring the matter to the file of the ld. CIT(E) for fresh adjudication in accordance with law.

5.

We have heard the rival submissions and perused the materials available on record. From the foregoing discussion, we note that the registration under section 80G of the Act was denied by the ld. CIT(E)

ITA No.898/Bang/2026 Page 3 of 3

solely on account of the absence of a duly registered lease deed in respect of the land on which the assessee had undertaken construction activities. 5.1 As submitted by the ld. AR, it appears that the defect pointed out by the ld. CIT(E) has since been rectified by the assessee, therefore, in the interest of justice and fair play, we deem it appropriate to grant one more opportunity to the assessee to present its case before the ld. CIT(E). Accordingly, the matter is restored to the file of the ld. CIT(E) for fresh adjudication in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes.

6.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in court on 27th day of May, 2026 Sd/- Sd/- (SOUNDARARAJAN K) (WASEEM AHMED) Judicial Member Accountant Member Bangalore Dated, 27th May, 2026 / vms / Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore

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