CHANDRAGUPT SHEPHARDS WELFARE ASSOCIATION,BHIWANDI V. CIT EXEMPTION PUNE, PUNE

ITA 1068/PUN/2024

AI Insights

The case involves the Chandragupt Shephards Welfare Association, which appealed against the decision of the CIT, Exemption, Pune, rejecting their application for registration in Form No.10AB under section 12A(1)(ac) of the Income Tax Act. The CIT had initially issued several notices to verify the genuineness of the trust's activities and compliance with legal requirements, leading to the rejection of their application. The Tribunal found that the CIT did not provide adequate opportunity for the assessee to comply fully with the requirements, leading to the setting aside of the CIT's order and remanding the case for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474228 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: DEEPA KHARE

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 Nos.1068 & 1069/PUN/2024 Chandragupt Shephards Welfare Association, At Narpoli, Bhiwandi, Bhiwandi- 421302. PAN : AABTC6654P Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the order dated 20.03.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act filed on 23.09.2023. ITA No.1068/PUN/2024 : 2. Facts of the case, in brief, are, that the assessee is a trust filed its application for registration in Form No.10AB under clause (iii) Assessee by : Smt. Deepa Khare Revenue by : Shri Amol Khairnar Date of hearing : 28.01.2025 Date of pronouncement : 29.01.2025 ITA Nos.1068 & 1069/PUN/2024 2 of section 12A(1)(ac) of the IT Act on 23.09.2023. 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 10.11.2023 requesting the assessee to upload certain information/clarification. The assessee failed to comply with the said notice. Therefore, another notice was issued on 12.12.2023 which was complied by the assessee but the same was not accessible hence another notice was issued on 14.02.2024. After verifying the submissions of the assessee, various discrepancies were noticed by Ld. CIT, Exemption, Pune and accordingly another notice was issued to the assessee on 29.02.2024 for which the compliance was due on 06.03.2024. The assessee responded to above notice and furnished written submissions before Ld. CIT, Exemption, Pune. After considering the reply of the assessee, Ld. CIT, Exemption, Pune was not satisfied about the charitable nature and 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 of achieving of its objects. ITA Nos.1068 & 1069/PUN/2024 3 Accordingly, the application for registration filed by the assessee is rejected and provisional registration granted to the assessee on 26.11.2021 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the IT Act is also cancelled. It is this order against which the assessee is in appeal before this Tribunal. 3. Ld. AR appearing from the side of the assessee submitted before us that Ld. CIT, Exemption, Pune has not provided proper opportunity to the assessee, & therefore the order is not justified. It was submitted that the last notice was issued on 29.02.2024 asking for various information and details and the compliance was required to be made on or before 06.03.2024. It was submitted that lots of information was already furnished by the assessee and again various information was required by the above notice and only five days were provided to the assessee to furnish huge information. It was also submitted that the desired information was furnished by the assessee in a short period of time and if Ld. CIT, Exemption, Pune was not satisfied, he should have had provided one more opportunity to the assessee to explain his case. Accordingly, it was requested before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to provide one opportunity ITA Nos.1068 & 1069/PUN/2024 4 to submit the documents/explanations/evidences in support of application for registration. 4. Ld. DR appearing from the side of the Revenue placed heavy reliance on the order passed by Ld. CIT, Exemption, Pune and requested to confirm the same. 5. We have heard Ld. Counsels from both the sides and perused the material available on record. On perusal of the impugned order passed by Ld. CIT, Exemption, Pune, we find that admittedly the assessee made compliance to the notices issued by the Ld. CIT, Exemption, Pune. It is the sole contention of the assessee in the grounds of appeal that if Ld. CIT, Exemption, Pune was not satisfied with the compliance made by the assessee trust he should have had provided at-least one further 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, ITA Nos.1068 & 1069/PUN/2024 5 Pune and produce requisite/ desired documents/information in support of the application for registration without taking any adjournment under any pretext, 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 in ITA No.1068/PUN/2024 is allowed for statistical purposes. ITA No.1069/PUN/2024 : 7. The assessee has filed this appeal against the order dated 20.03.2024 passed by Ld. CIT, Exemption, Pune, which is also the subject matter of appeal in ITA No.1068/PUN/2024. As we have already adjudicated and set-aside the same order in the appeal of the assessee in ITA No.1068/PUN/2024, the above appeal in ITA No.1069/PUN/2024 becomes infructuous hence dismissed. 8. In the result, the appeal filed by the assessee in ITA No.1069/PUN/2024 is dismissed. 9. To sum up, the appeal of the assessee in ITA No.1068/PUN/2024 is allowed for statistical purposes and the ITA Nos.1068 & 1069/PUN/2024 6 appeal of the assessee in ITA No.1069/PUN/2024 is dismissed as indicated above. Order pronounced on 29th day of January, 2025. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 29th 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. "