BLUEBRIAGE SPORTS FOUNDATION,PUNE V. CIT EXEMPTION, PUNE

ITA 219/PUN/2025

AI Insights

The case involves Bluebrigade Sports Foundation, which appealed against the decisions of the Commissioner of Income Tax (Exemption), Pune, rejecting their applications for registration under section 12A and approval under section 80G of the Income Tax Act, 1961. The CIT(E) had initially rejected these applications due to non-compliance with requests for detailed information and documentation to verify the genuineness of the trust's activities. The Tribunal found that the CIT(E) had not adequately considered the partial responses provided by the assessee and granted a remand for a fresh decision, emphasizing the need for a fair opportunity for the assessee to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712757 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: C. H. NANIWADEKAR
• Keywords: Set aside; Opportunity of being heard
• Section: 12A; 80G

Judgement Text

" आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.219 & 220/PUN/2025 Bluebrigade Sports Foundation, Shop No. 2, 1024/25, Shukrawar Peth, Tilak Road, Pune-411002 PAN : AALCB7396Q Vs. CIT Exemption, Pune अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee by : Shri C.H. Naniwadekar Department by : Shri Amol Khairnar Date of hearing : 21-07-2025 Date of Pronouncement : 30-07-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : The above two appeals filed by the assessee are directed against the separate orders both dated 03.12.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune (“CIT(E)”) rejecting the application(s) for grant of registration u/s 12A and approval u/s 80G of the Income Tax Act, 1961 (the “Act”) filed on 30.06.2024. For the sake of convenience, both these appeals were heard together and are being disposed of by this common order. 2. In ITA No.219/PUN/2025, the assessee has challenged the order of the Ld. CIT (E) in rejecting the application for registration u/s 12A of the Act while ITA No.220/PUN/2025 relates to the order of the Ld. CIT(E) in denying the approval u/s 80G of the Act. 3. Facts of the case in ITA No.219/PUN/2025, in brief, are that the assessee filed an application in Form No.10AB on 30.06.2024 for registration of the trust under clause (iii) of section 12A(1)(ac) of the Act. With a view to verify the genuineness of the 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 Printed from counselvise.com 2 ITA Nos. 219 & 220/PUN/2025 issued through ITBA portal on 14.08.2024 requesting the assessee to upload certain information/ details contained therein by 29.08.2024, followed by another notice issued on 07.10.2024 seeking compliance by 14.10.2024 as the assessee failed to comply to the initial notice. In response thereto, the assessee filed the requisite details. The Ld. CIT(E) while going through those details and documents filed along with the application, found various discrepancies for which he issued another notice on 21.11.2024 seeking compliance by 27.11.2024. The said discrepancies recorded by the Ld. CIT(E) in para 4 of the impugned order is reproduced below: “4. … \"(i) You have not submitted details of donation in the requisite format. You were specifically requested to furnish year-wise list of all donations received (including corpus donations etc.) during the last 3 years /since inception, whichever is later viz. full name, complete Postal address & PAN of donor, date & mode of donation, amount, receipt No. issued by trust / institute and copies of donation receipts and directions from the donors, if any. Please furnish the same. (ii) Kindly furnish evidences claiming expenses on charitable activities such as bills/vouchers/invoices alongwith photographs of charitable activities actually carried out by your trust. (iii) You have not submitted the financial statements for the last 3 years or since inceptions alongwith relevant schedules. Kindly furnish the same. (iv) The activity note submitted by you is very general in nature. In this regard, please furnish brief description of activity, date/place of activity, details of participants/beneficiaries, how they were identified etc.\" 3.1 As the assessee failed to furnish any explanation to the discrepancies communicated to it vide the above notice, the Ld. CIT(E) presumed that the assessee has nothing to say in the matter and consequently, having been unable to draw any satisfactory conclusion about the genuineness of the activities of the trust, the Ld. CIT(E) proceeded to pass the impugned order rejecting the assessee’s application for regular approval and also cancelled the provisional registration granted u/s 80G(5) of the Act earlier by observing as under : “7. Considering the above facts discussed in the show notice and discrepancies noticed and also that the assessee has not complied with the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961 as well as the provisions of Rule 17A(2) of Income Tax Rules, 1962 in spite giving sufficient opportunities, the undersigned is unable to draw an satisfactory conclusion about the genuineness of activities of the assessee and compliance of requirements of any other law for the time being in force by the assessee as are material for the purpose o achieving its objects. 8. In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 16/08/2023 under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961 is hereby cancelled.” Printed from counselvise.com 3 ITA Nos. 219 & 220/PUN/2025 4. Aggrieved with such order of the Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds: “1. The learned Commissioner of Income Tax (Exemption), Pune [hereinafter referred to as \"the Ld. CIT(E)\"] has erred in refusing to grant permanent registration under Section 12AB of the Income Tax Act, 1961 [hereinafter referred to as \"the Act\"]. 2. Without prejudice to the above ground, the Ld. CIT(E) has erred in cancelling the provisional registration under Section 12A of the Act granted to the Appellant on 16th August, 2023. 3. The Appellant prays to restore the said provisional registration for the period for which it was granted. 4. The Ld. CIT(E) has erred in rejecting permanent registration under Section 12AB of the Act, and cancelling the provisional registration, by not considering the online submissions made by the Appellant on 18th October, 2024. 5. The Ld. CIT(E) has erred by allowing a very short period for replying to notice issued on 21st November, 2024. 6. The Appellant prays to set aside the said Order passed by the Ld. CIT(E), and remand back the case to the Ld. CIT(E) for decision afresh, affording reasonable opportunity of being heard to the Appellant. 7. The Appellant craves leave to add to, alter, amend, modify, substitute, delete and/ or rescind all or any of the Grounds of Appeal on or before the hearing, if necessity so arises.” 5. Admittedly, the facts of the case in ITA No.220/PUN/2025 are similar to that of ITA No.219/PUN/2025 narrated above. Similar grounds have been raised in ITA No. 220/PUN/2025 which reads as under: “1. The learned Commissioner of Income Tax (Exemption), Pune [hereinafter referred to as \"the Ld. CIT(E)\"] has erred in refusing to grant permanent approval under Section 80G of the Income Tax Act, 1961 [hereinafter referred to as \"the Act\"]. 2. The Ld. CIT(E) has cancelled the provisional registration granted to the Appellant, and on the sole ground that the Appellant does not have registration under Section 12AB of the Act, the Ld. CIT(E) has rejected the application for final approval under Section 80G of the Act, without going into merits of the case. 3. Without prejudice to the above grounds, the Ld. CIT(E) has erred in cancelling the provisional approval under Section 80G of the Act granted to the Appellant on 16th August, 2023. 4. The Appellant prays to restore the said provisional approval for the period for which it was granted. 5. The Appellant prays to set aside the said Order passed by the Ld. CIT(E), and remand back the case to the Ld. CIT(E) for decision afresh, affording reasonable opportunity of being heard to the Appellant. 6. The Appellant craves leave to add to, alter, amend, modify, substitute, delete and/ or rescind all or any of the Grounds of Appeal on or before the hearing, if necessity so arises.” Printed from counselvise.com 4 ITA Nos. 219 & 220/PUN/2025 6. It is the submission of the Ld. AR that since the Ld. CIT(E) has rejected the grant of registration u/s 12A of the Act and cancelled the provisional registration granted earlier, he refused to grant approval u/s 80G of the Act. 7. The Ld. AR submitted that assessee filed partial response but full details could not be furnished in response to the discrepancies pointed out by the Ld. CIT(E). The Ld. AR submitted that given an opportunity the assessee is now in a position to file all the details/ documents as desired by the Ld. CIT(E). the Ld. AR therefore prayed for one more opportunity to be granted to the assessee to present and substantiate its case before the Ld. CIT(E) by filing the requisite details/ documents. 8. The Ld. DR, on the other hand, supported the order of the Ld. CIT(E) but had no objection if the matter is set aside to the file of Ld. CIT(E) for fresh adjudication as requested by the Ld. AR. 9. We have heard Ld. Representatives of the parties, perused the material available on record. It is an admitted fact that the assessee filed some response to the initial notice issued by the Ld. CIT(E) but failed to respond to the subsequent notice providing the requisite details/ clarification on various discrepancies noted by the Ld. CIT(E) due to which the Ld. CIT(E) rejected the application of the assessee for regular registration u/s 12A and also called the provisional registration granted earlier. The assessee’s application for grant of approval u/s 80G has also been rejected by the Ld. CIT(E) on the similar grounds. Further, since the application for grant of registration u/s 12A of the Act was rejected and the provisional registration granted earlier was cancelled, he also rejected the application for grant of approval u/s 80G of the Act. 10. Considering the totality of the facts and in the circumstances of the case enumerated above and in the interest of justice, we deem it proper, to set aside the impugned order(s) of the Ld. CIT(E) and restore the issue(s) to his file with a direction to grant one final opportunity to the assessee to explain and substantiate its case by filing the requisite details as may be required/ called upon and decide both the applications of the assessee under section 12A and 80G of the Act afresh as per fact and law. The assessee is also hereby directed to remain vigilant and make his submissions on the appointed date without seeking any adjournment under any pretext unless required for the sufficient cause, failing which the Ld. CIT(E) shall be at liberty to pass appropriate Printed from counselvise.com 5 ITA Nos. 219 & 220/PUN/2025 order(s) as per law. We direct and order accordingly. The grounds raised by the assessee in both the appeals are accordingly allowed for statistical purposes. 11. In the result, both the appeals in ITA Nos.219 & 220/PUN/2025 filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 30th July, 2025. Sd/- Sd/- (Manish Borad) (Astha Chandra) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; दिन ांक / Dated : 30th July, 2025. रदि आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1. अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. दिभ गीय प्रदिदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 5. ग र्ड फ़ इल / Guard File. //सत्य दपि प्रदि// True Copy// आिेश नुस र / BY ORDER, िररष्ठ दनजी सदचि / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune Printed from counselvise.com "