KESAR TULSI SOCIAL WELFARE SOCIETY,45 ,ANAND COLONY MALVIYA PETROL PUMPL vs. CIT EXEMPTION, BHOPAL
Facts
The assessee society applied for registration under Sections 12AB and 80G of the Income Tax Act, 1961. The Ld. CIT(E) rejected the application, citing non-compliance and failure to submit required documents despite multiple opportunities and adjournments.
Held
The Tribunal held that the impugned order should be set aside to secure the ends of justice. The case was remanded back to the Ld. CIT(E) with a direction for the assessee to participate effectively and produce all necessary documents without seeking further adjournments.
Key Issues
Whether the rejection of the registration application by the Ld. CIT(E) was justified without providing proper opportunity of being heard, and if the matter should be remanded for fresh consideration.
Sections Cited
253, 12AB, 80G, 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: B.M. BIYANI & SHRI PARESH M JOSHI
Per Bench:
This is an appeal filed by the assessee Under Section 253 of
the Income Tax Act, 1961 (hereinafter referred to as the “Act” for
sake of brevity) before this Tribunal. The assessee is aggrieved by
the order bearing Number ITBA/EXM/F/EXM45/2024-
25/1069752711(1) dated 17.10.2024 passed by the Ld. CIT(E)
which is hereinafter referred to as the “Impugned order”.
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Kesar Tulsi Social Welfare Society ITA Nos. 896&897/Ind/2024 2. FACTUAL MATRIX
Since in the both the appeals common question arises with
the consent of the parties they are being heard together and are
being disposed off by this common order. We take ITA
No.896/Ind/2024 as lead case and the decision shall apply to
both cases mutatis-mutandis.
2.1 That as and by way of “impugned order” the application(s)
of the assessee in Form 10AB for registration u/s 12AB & 80G of
the Act came to be rejected.
2.2 That the assessee had applied in Form 10AB for registration
u/s 12AB & 80G under the new provisions of the Income Tax
Act, 1961.
2.3 That the Ld. CIT(E) issued opportunity letters as detailed
under in form of table below and sought various
documents/details in order to process the said applications and
to verify the objects and activities of the assessee.
S.No. In respect of registration u/s 12AB & 80G Date of Hearing Remarks opportunity letters fixed on issued 1 07.08.2024 02.09.2024 No reply received 2 05.09.2024 17.09.2024 Adjournment for 15-30 days sought
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Kesar Tulsi Social Welfare Society ITA Nos. 896&897/Ind/2024 through portal on 17.09.2024 3 19.09.2024 24.09.2024 No reply/documents received. Final opportunity given for submission of reply/ documents. 4 01.10.2024 10.10.204 No reply/documents received
2.4 That despite affording aforesaid opportunities as detailed in
the table above of being heard and THE adequate time, the
assessee did not submit the required documents. Consequently
the application of the assessee could not be processed due to
non- compliance(s). Hence the registration u/s 12AB & 80G was
rejected.
2.5 That the assessee being aggrieved by the aforesaid
“impugned order” has preferred the instant appeal before this
Tribunal and has raised following grounds of appeal against the
“impugned order” which are as under:-
“1. The Ld. CIT - Exemption has erred in rejecting the application of final registration sought u/s 12A of ("the Act"). Such action of Ld. CIT - Exemption is against the facts and circumstances of the case and in law. 2. The rejection order passed by CIT - Exemption is liable to be set aside as the same has been passed without giving proper opportunity of being heard, such action thus against the principle of natural justice.
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Kesar Tulsi Social Welfare Society ITA Nos. 896&897/Ind/2024
The Ld. CIT-Exemption grossly erred in rejecting the application for final registration u/s 12A of ("the Act") filed in 3 form 10AB and such order is liable to be set aside as the trust fulfills all the conditions as required by the law so as to get the subject registered. 4. That, the appellant, craves leave to add, amend or modify any of the grounds of the appeal”.
Record of Hearing
3.1 The hearing in the matter took place before this Tribunal on
29.07.2025 when the Ld. AR for and on behalf of the assessee
appeared before us and interalia contended that the assessee is a
society duly registered and is for the charitable purposes. The
aims and objects of the assessee society is to help poor and needy
and so also to provide them education facilities. That the
provisional registration of the assessee society is in place. The
applications were moved for the final registration. The assessee
society for bonafide reason could not file before the Ld. CIT(E) the
necessary documents which were sought from. It was also
submitted that they relied upon the “Accountant” to complete
the due compliances and that there was miscommunication
between the assessee society and the “Accountant”. It was
submitted that the application for provisional registration was
dated 18.10.2022 and for final registration it was 17.04.2024
which is at page 47 of the paper book. Page 56 of the paper book
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Kesar Tulsi Social Welfare Society ITA Nos. 896&897/Ind/2024 is for the purpose of 80G. It was pleaded by the Ld. AR that they
blame themselves as well as the Accountant for the failure in
compliances before the Ld. CIT (E) and finally prayed that the
“impugned order” should be set aside. That upon remand to Ld.
CIT (E) if allowed by this Tribunal they would comply with all the
requisitions as soon as possible. Per contra the Ld. DR
appearing for and on behalf of the Revenue contended that in all
four opportunities were afforded to the assessee society and on
one occasion they sought even the adjournment. Hence the
action on the part of the assessee society is not bonafide but is
willful. In rejoinder the Ld. AR submitted and pleaded that if
opportunity is given to them as and by way of final opportunity
they would participate in the remand proceedings before the Ld.
CIT(E).
Observations,findings & conclusions.
4.1 We now have to decide the legality, validity and the
proprietary of the “Impugned Order” basis records of the case
and rival contentions canvassed before us.
4.2 We have carefully perused the records of the case.
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Kesar Tulsi Social Welfare Society ITA Nos. 896&897/Ind/2024
4.3 We basis records of the case and after hearing and upon
examining the rival contentions are of the considered view that
“impugned order” in order to secure ends of justice should be
set aside and accordingly is set aside as and by way of remand
back to the file of Ld. CIT(E) with a direction to the assessee
society to participate effectively and to produce all papers,
documents, information as sought without asking for any
adjournment on any flimsy grounds.
Order
5.1 In the premises, “impugned order” is set aside as and by
way of remand.
5.2 In the result, the appeal of the assessee is allowed for
statistical purpose.
ITA No.897/Ind/2024
The facts in above appeal are almost similar and finding in
Appeal No.896/Ind/2024 shall apply mutatis mutandis to this
appeal too.
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Kesar Tulsi Social Welfare Society ITA Nos. 896&897/Ind/2024 In result both the appeals are allowed for statistical
purpose as and by way of remand back to the file of Ld. CIT(E)
with directions as aforesaid.
Order pronounced in open court on 30.07.2025.
Sd/- Sd/-
(B.M. BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER
Indore िदनांक / Dated : 30/07/2025 Dev/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File
By order COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
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