BARACH KAHI FOUNDATION ,KOLHAPUR V. CIT EXEMPTION, PUNE , PUNE

ITA 2660/PUN/2024

AI Insights

The case involves the Barach Kahi Foundation, which appealed against the decision of the CIT, Exemption, Pune, rejecting their application for registration under section 12AA of the Income Tax Act. The CIT had initially issued a notice to verify the genuineness of the Foundation's activities and compliance with legal requirements, following which discrepancies were noted regarding the provisional registration. The Tribunal found that the CIT, Exemption, Pune did not provide sufficient opportunity for the assessee to explain the discrepancies and thus remanded the case for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24524 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA VIJAY
• Section: 12AA

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2660/PUN/2024 Barach Kahi Foundation, 34/A, Sarnoba Twadi, Ujlaiwadi, Kolhapur- 416004. PAN : AAJCB4427A Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 30.09.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AA of the IT Act. 2. When the appeal was called for hearing, neither anybody appeared on behalf of the appellant-assessee nor any adjournment application was filed despite due service of notice of hearing. Therefore, we proceed to dispose of this appeal after hearing Ld. DR as well as on the basis of material available on record. Assessee by : None Revenue by : Shri Chandra Vijay Date of hearing : 23.01.2025 Date of pronouncement : 27.01.2025 ITA No.2660/PUN/2024 2 3. Facts of the case, in brief, are, that the assessee filed application for registration in Form No.10AB under clause (iii) of section 12(1)(ac) of the IT Act on 05.03.2024. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 09.05.2024 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. On verification of said information furnished by the assessee, Ld. CIT, Exemption, Pune found that certain discrepancies are there with regard to provisional registration which was obtained under 12A(1)(ac)(vi)(A) i.e. the activities were commenced prior to obtaining provisional registration. After perusal of reply submitted by assessee in this regard, Ld. CIT, Exemption, Pune was not satisfied with the same and rejected the application for registration and also cancelled the provisional registration granted to the assessee on 01.03.2024 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the IT ITA No.2660/PUN/2024 3 Act. It is this order against which the assessee is in appeal before this Tribunal. 4. Ld. DR appearing from the side of the Revenue placed heavy reliance on the orders passed by the subordinate authorities and requested to confirm the same. 5. We have heard Ld. DR and perused the material available on record. We find that admittedly the assessee made compliance to the initial notices issued by the Ld. CIT, Exemption, Pune. It is the sole contention of the assessee that if the reply of the assessee was not satisfactory Ld. CIT, Exemption, Pune should have had provided at-least one more opportunity to the assessee to explain his case. Considering the totality of the facts of the case and in the interest of justice without going into the merits of the case, we set- aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the application for registration afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and produce requisite documents/information in support of the ITA No.2660/PUN/2024 4 application for registration, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee are partly allowed. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 27th day of January, 2025. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 27th January, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT, Exemption, Pune. 4. The Pr. CIT/CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "