CONFEDERATION FOR CONVERGENCE IN RURAL DEVELOPMENT,AKOLA V. CIT EXEMPTION, PUNE, PUNE

ITA 2805/PUN/2024

AI Insights

The case involves the Confederation For Convergence In Rural Development, a charitable institution, which appealed against the rejection of its applications for permanent registration under sections 12AB and 80G of the Income Tax Act by the Commissioner of Income Tax (Exemption), Pune. The Tribunal found that the CIT(Exemption) had not adequately considered the extensive documentation and evidence provided by the appellant, leading to a decision that violated the principles of natural justice. The Tribunal directed the CIT(Exemption) to reconsider the applications with a detailed, reasoned order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711953 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: NRUPBAHADDUR; AKSHAY KHANDALE
• Keywords: Set aside; Opportunity of being heard; Additional evidence; Principle of natural justice; Charitable institution

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.2805 and 2806/PUN/2024 Confederation For Convergence In Rural Development, W. No.2, H No. 59, Pratik Nagar, Near Mangesh Nakat House, Murtizapur 444107, Maharashtra PAN: AAICC3899C Vs. Commissioner of Income Tax (Exemption), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeals at the instance of appellant are against the rejection of applications for regular registration u/s.12AB(1)(b)(ii) and approval u/s.80G of the Act respectively framed by ld.CIT(E) dated 26.10.2024. 2. We shall first take up the appeal filed by the appellant trust in ITA No.2805/PUN/2024 wherein it has assailed the impugned order on the following grounds of appeal: “1. Commissioner failed to consider the extensive documentation submitted by the appellant, which included 1 financial statements, activity reports, and proof of charitable activities, thereby arriving at an erroneous conclusion. 2. Allegations of discrepancies in financial and operational data were based on an incorrect interpretation of records. The appellant has consistently adhered to its charitable objectives as demonstrated by verifiable evidence. Appellant by : Shri Nrupbahaddur & Shri Akshay Khandale Respondent by : Shri Amol Khairnar Date of hearing : 10.07.2025 Date of pronouncement : 22.07.2025 Printed from counselvise.com ITA No.2805 and 2806/PUN/2024 Confederation For Convergence in Rural Development 2 3. The appellant was not afforded adequate opportunity to present explanations and additional evidence. The order was passed hastily without a thorough appreciation of the documents and responses submitted.” 3. Succinctly stated, the appellant is a charitable institution established with the object of improving rural livelihoods by promoting sustainable farming practices, organic farming, water conservation, empowering women etc. It has been granted provisional registration us/.12AB on 10.03.2022. Subsequently, the appellant trust applied for permanent registration by way of Form No. 10AB u/s.12A(1)(ac)(iii) of the Act on 29.05.2024. In order to verify the genuineness of activities of the appellant, the ld.CIT (Exemption) issued notice through ITBA portal on 25.06.2024 requiring the appellant to upload certain information. In compliance, the appellant trust furnished the requisite details as called for. Thereafter, ld.CIT(E) issued another notice dated 15.10.2024 communicating the discrepancies in the details so filed and there was no response from the appellant’s side Eventually, ld. CIT (Exemption) vide the impugned order dated 26.10.2024 rejected the application filed by the appellant for registration of the trust u/s. 12AB of the Act observing that the appellant has not furnished any explanation to the discrepancies communicated to it, it is presumed that the appellant has nothing to say in the matter, thereby cancelled the provisional registration granted to the appellant on 10.03.2022. Now the appellant is in appeal before this Tribunal. Printed from counselvise.com ITA No.2805 and 2806/PUN/2024 Confederation For Convergence in Rural Development 3 4. We have heard the rival contentions and perused the record placed before us. On careful circumspection of the facts and the impugned order, we find that ld.CIT(Exemption) has not brought on record any finding or material analysis to substantiate how and in what manner the activities of the trust were not in accordance with the stated objectives nor has articulated which information was missing, despite the appellant furnishing a detailed reply along with supporting documents. Before us, it is claimed by the appellant that it has filed financial statements, activity report, proof of charitable activities before ld.CIT(Exemption but they have not been entertained and the evidences have not been taken in right perspective even after demonstrating the charitable activities. In light of these observations, we are of a firm conviction that the rejection by the Ld.CIT(Exemption) of the application filed by the appellant trust for permanent registration without passing a reasoned order violates the principles of natural justice. It will be apposite to observe that non-speaking, cryptic, and mechanical orders passed by quasi-judicial authorities are not sustainable in law. The Ld.CIT(Exemption) while disposing off the application filed by the appellant trust u/s.12AB of the Act was expected to pass a reasoned order and specific findings after considering the material on record. 5. In view of the above, the impugned order dated 26.10.2024 is hereby set aside, and the matter is restored to the file of the Ld.CIT(Exemption) with a direction to pass a fresh speaking and reasoned order in accordance with law. Needless to mention that the appellant trust in the course of Printed from counselvise.com ITA No.2805 and 2806/PUN/2024 Confederation For Convergence in Rural Development 4 the set aside proceedings shall be afforded a reasonable opportunity of being heard. Appellant is at liberty to adduce all the required supporting documents/evidence substantiating the charitable activities. 6. In the result, the appeal filed by the appellant trust in ITA No.2805/PUN/2024 is allowed for statistical purposes in terms of our aforesaid observations. ITA No.2806/PUN/2024 7. We shall now deal with the appeal filed by the appellant trust, wherein it has assailed the rejection of application for granting approval u/s.80G(5) of the Act by the CIT(Exemption). 8. Succinctly stated, the appellant trust was granted provisional registration u/s.80G of the Act vide order dated 10.03.2022. Subsequently, the appellant trust applied for permanent registration and the same was rejected by the ld.CIT(Exemption) vide order dated 26.10.2024. Appellant filed application for approval u/s.80G(5) of the Act which was declined by ld.CIT(Exemption). 9. We find that the facts attending to the rejection of the application filed by the appellant trust for approval u/s.80G(5) also remain the same as were involved in its against the order of the CIT(Exemption) declining its registration u/s 12AB of the Act, therefore, our order therein passed shall apply mutatis mutandis for the present appeal too. Impugned order dated 26.10.2024 is hereby set aside and the matter is restored to the file of the CIT(Exemption) with a direction to pass a fresh speaking and reasoned order Printed from counselvise.com ITA No.2805 and 2806/PUN/2024 Confederation For Convergence in Rural Development 5 in accordance with law. Needless to mention that the appellant trust in the course of the set aside proceedings shall be afforded a reasonable opportunity of being heard and will remain at liberty to submit any further documents or explanations as may be required. 10. In the result, both the appeals filed by the appellant trust are allowed for statistical purposes. Order pronounced on this 22nd day of July, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 22nd July, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “A” ब\u0014च, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "