Appeal details
Counselvise Citation
[2024] 130 COUNSELVISE.COM (IT) 2573 (ITAT-COCHIN)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
7 month(s) 4 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
27-12-2024
Appeal Filed By
Department
Order Result
Partly Allowed
Bench Allotted
DB
Next Hearing Date
15-10-2025
Assessment Year
misc
Appeal Filed On
23-05-2024
Judgement Text
"ITA No. 447/Coch/2024 \nEnergy Management Centre, Trivandrum \nIN THE INCOME TAX APPELLATE TRIBUNAL \nCOCHIN BENCH: COCHIN \n \nBEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT \nAND \nSHRI KESHAV DUBEY, JUDICIAL MEMBER \n \nITA No. 447/Coch/2024 \n Assessment Year: 2024-25 \n \nEnergy Management Centre, \nTrivandrum, \nSrikrishna Nagar, \nKerala - 695017 \nPAN NO : AAATE1024A \nVs. \nCIT (Exemption), \nKochi. \nAPPELLANT \n \nRESPONDENT \n \n \nAppellant by \n: \nShri. Mathew Joseph, CA \nRespondent by \n: \nShri. Sanjit Kumar Das, CIT DR \n \n \nDate of Hearing \n: 03.12.2024 \nDate of Pronouncement : 27.12.2024 \n \nO R D E R \n \nPER KESHAV DUBEY, JUDICIAL MEMBER: \n \nThis appeal at the instance of the assessee is directed against the order \nof id. CIT (E) dated 26.03.2024 vide DIN & Notice No. ITBA/ EXM/ F/ \nEXM45/ \n2023-24 \n/ \n1063392535(1) \nand \nApplication \nNo. \nCIT(Exemption),KOCHI/2023-24/ 12AA/ 11133 for the AY 2024-25 \npassed u/s 12A of the Income Tax Act, 1961 (in short \"The Act\"). \n2. \nThe assessee has raised the following grounds of appeal: \n1. The learned Commissioner of Income - Tax, by \nhis order u/s. 12AB(i) (b) (ii) (B), went wrong in \nrejecting the application for fresh registration \nmade u/s 12A (1) (ac) (ii) for the reason of not \ncommencing any of the charitable activities in \nthe objective in order to satisfy himself about \n\nITA No. 447/Coch/2024 \nEnergy Management Centre, Trivandrum \nPage 2 of 5 \nthe \ngenuineness \nof \nthe \nactivities \nof \nthe \ninstitution. \n2. Any other grounds that may be allowed at the \ntime of hearing. \n3. Brief facts of the case are that the assessee is an autonomous \nbody under the Department of Power, Govt. of Kerala, registered \nunder the Travancore-Cochin Literary, scientific and charitable \nsocieties Act, 1955 with registration No. 139/96 and came into \nexistence on 07.02.1996. The assessee has been notified as to the \n\"State Designated agency\" to coordinate, regulate and enforce the \nprovision of the EC Act, 2001 in the state of Kerala with the \nconcurrence of BEE, Ministry of Power and Govt. of India and for \nimplementing various schemes under the Act. The centre is devoted to \nthe improvement of energy efficiency in the state, promotion of energy \nconservation and encouraging the development of technologies related \nto energy through research, training, demonstration programs and \nawareness creation. The centre is also promoting small hydro power \nprojects. \n3.1 The assessee filed form 1OAB on 18.09.2023 for regularizing the \nprovisional registration u/s. 12A. The assessee filed details / \ndocuments in response to hearing notice dated 04.12.2023. The Id. CIT \n(E) noted the following defects as below: \n1. \nAs per the MoU, Rules and regulations and byelaws, the \napplicant trust is not having done any charitable activities as per \nthe section 2(15) of the Income Tax Act. \n2. \nThe applicant has not produced its activity report on \ncharitable activities done and details of its beneficiaries. \n \n \n\nITA No. 447/Coch/2024 \nEnergy Management Centre, Trivandrum \nPage 3 of 5 \nAccordingly, the assessee was directed to file its objections (if \nany) against rejection of Form 10AB filed for 12A registration on \nor before 04.03.2024. However, the assessee has not filed any \nobjections. In the opinion of the ld. CIT(E), as the activities of the \nassessee does not come under the charitable activities defined in \nSec 2(15) of the Act, the application in form 10AB filed u/s. \n12A(1)(ac)(iii) of the Act was rejected and accordingly, the provisional \nregistration in form 10AC u/s. 12A(1)(ac)(vi) was also cancelled. \n4. \nAggrieved by the order passed by the ld. CIT (E), cancelling \nthe registration, the assessee has filed the present appeal before this \nTribunal. The assessee has also filed written submissions along with \nthe acknowledgement receipt of income tax forms filed on 18.09.2023 \nand true copy of the byelaws amendments comprising 11 pages \nbefore us. \n5. \nBefore us, Id. A.R. of the assessee vehemently submitted that \nthe assessee has submitted the byelaws amendment clauses to the \nregistrar of societies in Feb, 2024 and registrar has also been pleased \nto pass the amendments. The amended byelaws were received from \nthe society registrar office only after passing the rejection order from \nld. CIT (E). Further, AR of the assessee submitted that the assessee \nhad already filed a copy of the annual report detailing the activity of \nthe society along with the audited financial statement. Therefore, ld. \nCIT (E) is not correct in holding that the assessee has not produced \nits activity report. Lastly the AR of the assessee submitted that \nassessee is not doing any trade or business related activity and the \nentire receipt is grant received from State and Central govt. and other \ngovt. departments. The application for approval was rejected only for \nwant of amended byelaws without giving reasonable opportunity of \nbeing heard to the assessee and requested that one more opportunity \nmay be granted to produce all the details before the ld. CIT (E). \n\nITA No. 447/Coch/2024 \nEnergy Management Centre, Trivandrum \nPage 4 of 5 \n6. \nThe Id. D.R. on the other hand supported the order of the ld. \nCIT (E) and submitted that the Ld. CIT (E) has granted opportunity to \nfile objection in respect to defects pointed out by him but the \nassessee has not filed any objection and therefore the CIT(E) is right \nin rejecting the application for the registration. \n \n7. \nWe have heard the rival submissions and perused the \nmaterials available on record. The assessee is an autonomous body \nunder the Department of Power, Govt. of Kerala, registered under the \nTravancore-Cochin Literary, scientific and charitable societies Act, \n1955 with registration No. 139/96 and came into existence on \n07.02.1996. As claimed by the AR of the assessee, assessee is not \ndoing any trade or business related activity and the entire receipts \nare grant received from State and Central govt. and other govt. \ndepartments. We take a note of the fact that the assessee has \namended the byelaws (placed in pg. 5 - 11 of written submissions) \nwhich the assessee claim to have received from the Society Registrar \noffice after passing of the rejection order by the Id. CIT (E). Further, \non going through the acknowledgment receipt of the Income Tax \nform dated 18/09/2023, we find that the assessee has filed the \nannual report as well as audited financials of previous two years \nwhich the assessee claims to contain the details of the activities of \nthe society. Further we take a note of the fact that the assessee \ncould not file their objection as observed by the ld. CIT (E) in \nresponse to defects pointed out by the ld. CIT (E). This being so, we \nare of the considered opinion that in the interest of justice and fair \nplay and considering the request of the AR of the assessee as well as \nconsidering the amended byelaws being received from the Society \nRegistrar office only after passing the rejection order by the Id. CIT \n(E), we set aside the entire issue to the file of Id. CIT (E) for fresh \nconsideration in accordance with the law. The assessee is also \ndirected to produce the copy of the amended byelaws along with the \n\nITA No. 447/Coch/2024 \nEnergy Management Centre, Trivandrum \nPage 5 of 5 \nactivities report and audited financials to substantiate its claim. \nNeedless to say a reasonable opportunity of being heard must be \ngranted to the assessee. In case of further default on the part of the \nassessee, they shall not be entitled for any leniency. It is ordered \naccordingly. \nIn the result, appeal filed by the assessee is partly allowed. \n \nOrder pronounced in the open court on 27th Dec, 2024 \n \n \nSd/- \n(Prashant Maharishi) \n Vice President \n \nSd/- \n(Keshav Dubey) \nJudicial Member \n \n \nBangalore, \nDated: 27th Dec, 2024. \nVG/SPS \n \n \n \nCopy to: \n \n1. The Applicant \n2. The Respondent \n3. The CIT \n4. The DR, ITAT, Bangalore. \n5 \nGuard file \n \n \n \n \n \n \n \n \n \n By order \n \n \n \nAsst. Registrar, \nITAT, Cochin. \n \n \n"
