SHRI RANI SATI SEWA SAMITI,GONDIA vs. ITO WARD-1 EXEMPTION, NAGPUR

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ITA 122/NAG/2026Status: DisposedITAT Nagpur13 October 2026AY 2022-233 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee's sole contention was that the CIT(A) erred in sustaining the denial of exemption under Section 11 because the appeal against the cancellation of registration under Section 12A was pending before the Hon'ble ITAT. Considering the facts, circumstances, submissions, and the principles of natural justice, the Tribunal decided to provide the assessee with one more opportunity to substantiate its case with evidence and information. Accordingly, the Tribunal set aside the order of the CIT(A) and restored the issues to the file of the Assessing Officer for adjudication afresh. The AO was directed to consider the decision of the Hon'ble Income Tax Tribunal (presumably on the pending appeal against cancellation) and provide the assessee with an adequate opportunity of hearing. The grounds of appeal were allowed for statistical purposes.

What were the facts?

The assessee, Shri Rani Sati Sewa Samiti, filed its return of income for Assessment Year 2022-23 on 21.10.2022, claiming exemption under Section 11 of the Income Tax Act, 1961. The Assessing Officer (AO) noted that the assessee's registration under Section 12AB of the Act had been cancelled by the CIT(Exemptions). The AO, not satisfied with the assessee's submissions, denied the exemption under Section 11, treated the assessee as an AOP, disallowed building maintenance expenses as capital expenditure (after allowing depreciation), and assessed total income at Rs. 7,23,170/-. The assessee appealed to the CIT(A)/NFAC, which upheld the AO's order. The assessee then filed an appeal before the Income Tax Appellate Tribunal (ITAT).

What were the issues?

1. Whether the CIT(A) erred in sustaining the denial of exemption under Section 11 of the Act, considering that the assessee's registration under Section 12A of the Act was cancelled, and an appeal against this cancellation was pending before the Hon'ble ITAT? (Question of law and mixed fact and law, turning on Section 11 and Section 12A). Assessee's Contention: The CIT(A) erred in sustaining the denial of exemption by overlooking that an appeal against the cancellation of registration under Section 12A was pending before the Hon'ble ITAT. The assessee prayed for the appeal to be allowed. Revenue's Contention: The Ld. DR supported the order of the CIT(A).

Which sections of the Income-tax Act were involved?

Section 11,Section 12A,Section 12AB,Section 143(1),Section 143(2),Section 143(3),Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH :: NAGPUR

Before: SHRI PAVAN KUMAR GADALE

Hearing: 08.10.2026Pronounced: 13.10.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR “SMC” BENCH :: NAGPUR (Through virtual hearing) BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I.T.A. No.122/NAG/2026 (Assessment Year: 2022-23) Shri Rani Sati Sewa ITO (Exemptions), Samiti, Shakti Dham, Ward-1, Ganesh Nagar, BSNL RTTC Building, Vs. Gondia-441601, Nagpur-440001, Maharashtra. Maharashtra. PAN: AACTS 3294 G (Appellant) (Respondent) For Assessee : Miss Dharshana Bhaiya.CA.AR For Revenue : Shri Shiva Shankar Yadav, Sr.DR Date of Hearing : 08.10.2026 Date of Pronouncement : 13.10.2026 ORDER The Assessee has filed the appeal against the order of CIT(A)/NFAC Delhi passed u/sec143(3) and U/sec250 of the Act sustaining the addition and the denial of exemption u/sec. 11 of the Act made by the Assessing Officer. 2. The brief facts of the case are that, the assessee-trust has filed the return of income for A.Y.2022-23 on 21.10.2022 disclosing a total income of Rs.NIL after claiming exemption u/sec. 11 of the Act and the return of income was processed u/sec. 143(1) of the Act . Subsequently, the case was selected for scrutiny and notice u/sec143(2) and u/sec142(1) of the Act are issued. The Assessing Officer (A.O) find that the registration u/sec.12AB of the Act was cancelled by the CIT(Exemptions) and the assessee has filed submissions on the facts and dealt by the A.O in the Assessment order. Whereas the Assessing Officer (AO) find that the assessee is

ITA.No.122/NAG/2026 (Shri Rani Sati Sewa Samiti)

not holding valid registration u/sec12A of the Act and dealt on the information/ documents submitted by the assessee and was not satisfied with the explanations and denied the claim of exemption u/sec11 of the Act and treated the status of assessee under AOP and disallowed the building maintenance expenses treating as capital expenditure after allowing depreciation and assessed the total income of Rs.7,23,170/- and passed the order u/sec. 143(3) r.w.s. 144B of the Act dated 11.03.2024. 3. Aggrieved by the order, the assessee has filed the appeal before the CIT(A). Whereas the CIT(A) has considered the grounds of appeal, statement of facts, submission of assessee and findings of assessing officer but has confirmed the action of the A.O and dismissed the assessee’s appeal. Aggrieved by the order of the CIT(A), the assessee has filed the appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld. AR submitted that the CIT(A) has erred in sustaining the denial of the claim of exemption overlooking the facts and submissions. The CIT(A) has not considered the information that subsequent to the cancellation order of the CIT(Exemption), the assessee has filed the appeal with the Honble ITAT and is pending disposal and prayed for allowing the appeal. Per contra, the Ld.DR supported the order of the CIT(A). 5. Heard the rival submissions and perused the material on record. The sole crux of the disputed issue envisaged by the Ld.AR that the CIT(A) has erred in sustaining the addition and denial of claim u/sec 11 of the Act as the assessee was not having valid registration u/sec12A of the Act and subsequent to the

ITA.No.122/NAG/2026 (Shri Rani Sati Sewa Samiti)

cancellation order u/sec12A of the Act of the CIT(Exemption), the assessee has filed the appeal with the Honble income Tax disposal.Hence, Appellate Tribunal and is pending considering the facts, circumstances, submissions and principles of natural justice, shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) on the disputed issue and restore the issues to the file of the Assessing Officer to adjudicate afresh considering the decision of Honble Income Tax Tribunal and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information. And the grounds of appeal of the assessee are allowed for statistical purposes.

6.

In the result, the appeal filed by the assessee is allowed for statistical purposes

Order pronounced in the open Court on 13th October, 2026 Sd/- PAVAN KUMAR GADALE (JUDICIAL MEMBER) Pune, Dated: 13th October, 2026 vr/- आदेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : अिीिार्थी / The Appellant. 1. प्रत्यर्थी / The Respondent. 2. 3. The Pr. CIT concerned. 4. तिभागीय प्रतितिति, आयकर अिीिीय अतिकरण, “SMC” बेंच, नागपूर / DR, ITAT, “SMC” Bench, Nagpur. गार्डफ़ाइि / Guard File. 5. //True Copy// आदेशािुसार / BY ORDER, Digitally signed Vukkem by Vukkem Assistant Registrar/Sr.PS, Rambabu Rambabu आयकर अिीिीय अतिकरण,/ ITAT, Nagpur. Date: 2026.10.13 17:54:21 +05'30'

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