ASRA FOUNDATION NAGPUR,NAGPUR vs. ITO WARD-1, EXEMP,, NAGPUR

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ITA 61/NAG/2025Status: DisposedITAT Nagpur21 March 2025AY 2025-263 pages
AI SummaryN/A

What did the Tribunal hold?

The Tribunal, acknowledging the need for natural justice for small Trusts, set aside the impugned orders of the CIT(E). It directed the CIT(E) to re-adjudicate the applications on their merits, ensuring the assessee is given a reasonable opportunity to be heard and present its case.

What were the facts?

The assessee, Asra Foundation, challenged the Commissioner of Income Tax (Exemption)'s orders rejecting its applications for registration under sections 80G(5) and 12A(1)(ac) of the Income Tax Act, 1961. The rejection was based on non-compliance with statutory notices requiring submission of details and evidences.

What were the issues?

Whether the rejection of applications under sections 80G(5) and 12A(1)(ac) due to non-compliance, without adequate opportunity, was justified.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 12A(1)(ac)

AI-generated summary — verify with the full judgment below

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR

BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI K.M. ROY, ACCOUNTANT, MEMBER

ITA no.60 & 61/Nag./2025

(Assessment Year : N.A.)

Asra Foundation Hotel Aalishan, Opp. Aabid Diary Islamia School Chowk, Mominpura Nagpur 440 018 PAN – AADAA8818L

……………. Appellant

v/s

Income Tax Officer Ward–1, Exemption, Nagpur ……………. Respondent

Assessee by : Ms. Alfiya Rozie

Revenue by : Shri Sandipkumar Salunke

Date of Hearing – 05/03/2025 Date of Order – 21/03/2025

O R D E R

PER K.M. ROY, A.M.

Captioned appeal by the assessee is emanating from the impugned orders of even date 07/12/2024, passed by the learned Commissioner of Income Tax (Exemption), Pune, , ["learned CIT(E)"], in Form no.10AD, rejecting the application filed by the assessee in Form no.10AB(iii) of first proviso to sub–section (5) of section 80G of the Income Tax Act, 1961 ("the Act") and application filed by the assessee in Form no.10AB(iii) of section 12A(1)(ac) of the Act respectively.

2.

Since the issues involved in these appeals by the assessee are inter– connected, therefore, as a matter convenience, we proceed to dispose of these appeal by passing a consolidated order.

Asra Foundation ITA no.60 & 61/Nag./2025

3.

The rejection was done by the learned CIT(E) vide impugned orders of

even date 07/12/2024. It appears that there was no compliance to the

statutory notices due on 02/12/2024, to furnish certain details / evidences.

The learned Authorised Representative for the assessee submitted that she

will furnish the desired details / evidences if given one more opportunity to

substantiate its cases before the learned CIT(E). However, she failed to

adduce any evidence / documents before us. It is pertinent to mention here

that this Bench was always taken a sympathetic and lenient view that these

types of small Trusts must be afforded full opportunity in the interest of

natural justice to establish their cases. Accordingly, we set aside the

impugned orders passed by the learned CIT(E) and direct him to adjudicate

the matters on merits and in accordance with law after providing reasonable

opportunity of being heard to the assessee.

4.

In the result, assessee's appeals are allowed for statistical purposes.

Order pronounced in the open Court on 21/03/2025

Sd/- V. DURGA RAO JUDICIAL MEMBER

Sd/- K.M. ROY ACCOUNTANT MEMBER

NAGPUR, DATED: 21/03/2025

Copy of the order forwarded to:

- (1) The Assessee; - (2) The Revenue; - (3) The PCIT / CIT (Judicial); - (4) The DR, ITAT, Nagpur; and - (5) Guard file.

True Copy By Order

Pradeep J. Chowdhury Sr. Private Secretary

> Sr. Private Secretary ITAT, Nagpur

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