NEK KARYA SEWA SAMITI,INDORE vs. CIT EXEMPTION BHOPAL, BHOPAL
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI BHAGIRATH MAL BIYANI, ACCOUNTANT & SHRI PARESH M JOSHIMEMBER
आदेश / O R D E R
Per Paresh M Joshi, J.M.:
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-
25/1071266985(1)dated 16.12.2024 of the Ld. CIT(Exemption),
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Nek Karya Sewa Samiti ITA No. 85/Ind/2025 A.Y: 2024-25 Bhopal, M.P. which is hereinafter referred to as the “impugned
order”.
FACTUAL MATRIX
2.1 The appellant is a Society, registered under the Madhya
Pradesh Societies Registration Act, 1973 vide certificate of Regn.
No. 03/27/03/15206/12 Dated 09/05/2012 and has
provisionally registered under Section 12A having provisional
Registration No. AAEAN1998BE20211 from AY-2022-23 to AY
2024-25 through order of CIT exemption dated 07/04/2022.
2.2 The objective of the Society is to make available free of cost
food packet to poor or lower-class students, Schools, hospital and
various distribution centre in city and to spread awareness
towards Medicine and Health in general. Society also provides
Medical Facility for CT-scan and MRI at free of cost or
concessional rate.
2.3 The assessee applied for regular registration under clause (iii)
of sub-section C of section 12AB(1) of the act, as per the new
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Nek Karya Sewa Samiti ITA No. 85/Ind/2025 A.Y: 2024-25 provision of Income Tax Act, 1961 in Form 10AB on 30
September 2023 via Ack No. 373639010300923.
2.4 Consequently, opportunity letters were issued and various
documents/details were called for; to process the said application
on 04 December 2023 but due to Asses portal issues, assessee
could not access to the same on time. On 16 January 2024
assessee submitted the response along with the documents.
2.5 On 30 December 2023 & 19 February 2024 assessee again
received notices but no further documents/details were called
for. However, assessee again responded with all the documents
which were earlier submitted on 16 January 2024.
2.6 Assessee submitted reply it also requested to allow more
time to submit the donation details but no response was given
and order for rejection was issued. This order of rejection of Ld.
CIT (E) for regular registration was challenged before ITAT which
has remanded the matter back to CIT (E) (ITA No.428/Ind/2024)
2.7 However on 16.12.2024 assessee received the rejection order
in Form 10AD stating that-
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Nek Karya Sewa Samiti ITA No. 85/Ind/2025 A.Y: 2024-25 The assessee has applied in Form 10AB for registration u/s 80G(5)(iii) under the now provision of Income Tax Act, 1961. Consequently, opportunity letter was issued to the assessee and various documents/details were called for, to process the said application and to verify the eligibility of the assessee. The assessee has submitted his reply during the proceedings.
On perusal of record, it is found that application for registration u/s 12AB has already been rejected vide this office order dated: 04.03.2024 and hence, provisional registration accorded by the CPC In Form 10AC has also been cancelled.
For issuing of registration u/s 80G, it is prerequisite to possess exemption certificate for its income. The relevant provision of the act is mentioned below for reference:
80G. (1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section,-
(5) This section applies to donations to any institution or fund referred to in 2(a)(iv), only If It is established in India for a charitable purpose and if it fulfills the following conditions, namely:-
(i) where the Institution or fund derives any income, such income would not be liable to Inclusion in its total Income under the provisions of sections 11 and 12 or clause (23AA) or clause (23C) of section 10.22
As the assessée doesn't have registration u/s 12AB w which is a prerequisite for obtaining approval u/s 80G, assessee is not eligible to obtain approval u/s 80G(5)(iii) of the Act.
5.Considering the facts of the case and reasons mentioned above and compulsory provisions of the Act, the application of the assessée filed in Form 10AB for grant of registration u/s 80G(6) of the Act is hereby rejected.
The provisional approval u/s 80G(6) in Form 10AC granted by CPC is also hereby cancelled as per the second proviso to Section 80G(5) of the Act.”. [ The impugned order) supra.
Record of Hearing
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Nek Karya Sewa Samiti ITA No. 85/Ind/2025 A.Y: 2024-25 3.1 The hearing in the matter took place before us on
25.03.2025, when the Ld. AR for and on the behalf of the
assessee interalia contended that “Impugned Order” of Ld.
CIT(E) is in violation of principles of natural justice and is
therefore bad in law, illegal and not proper. Further issue of final
registration is pending before CIT(E) on remand from ITAT.
Therefore impugned order deserves to be set aside by this
Tribunal in exercise of its appellate jurisdiction too.
Observations,findings & conclusions.
4.1 We now have to decide the legality, validity and proprietary
of the “Impugned Order” basis records of the case and
contentions canvassed before us.
4.2 We have minutely perused records of the case and have
heard the rival submissions.
4.3 We are of the considered opinion that since Ld. AR has
under taken before us that the assessee would file all requisite
information/details before CIT (E) that it would be just fair and
convenient and in the interest of ends of justice that impugned
order be set aside and matter be remanded back to file of CIT(E)
to pass a fresh order on denovo basis after assessee has
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Nek Karya Sewa Samiti ITA No. 85/Ind/2025 A.Y: 2024-25 submitted all details as sought. Hence we set aside the
“impugned order” as and by way of Remand on denovo basis.
Order
5.1 In the premises “impugned order” is set aside as and by
way of remand on denovo basis.
5.2 Appeal is allowed for statistical purpose.
Order pronounced in open court on 26.03.2025.
Sd/- Sd/-
(BHAGIRATH MAL BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore िदनांक /Dated : 26/03/2025 Dev/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
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