Koteshwar Mahadev Public Trust Vs DCIT (ITAT Surat)
Income Tax Appellate Tribunal (ITAT), Surat bench, has restored the appeal of Koteshwar Mahadev Public Trust for Assessment Year 2013-14 to the file of the Assessing Officer (AO). The appeal arose from the order of the Commissioner of Income Tax (Appeals) [CIT(A)] dated 5 September 2024, which upheld the CPC Bangalore’s action of disallowing the Trust’s claimed exemption of ₹8.47 lakh under Sections 11 and 12 and raised a demand of ₹2.12 lakh under Section 143(1). The assessee argued that the CIT(A) failed to provide an adequate hearing and passed an ex-parte order. It was further submitted that the grounds in the present appeal were identical to those for AYs 2014-15 and 2015-16, which had been remanded to the AO by ITAT after condonation of similar delays. The Tribunal noted the lack of distinction in facts across the years and applied the principle of consistency. Citing precedents, including Shree Bhanushali Mitra Mandal Trust vs. ITO and CBDT Circular No.1/2015, ITAT observed that Section 11 benefits could not be denied if registration under Section 12AA was granted during pendency of the appeal. Accordingly, it set aside the CIT(A)’s order and directed the AO to verify the facts and grant relief per law, after giving the assessee an opportunity to present details. The appeal was allowed for statistical purposes.
