FORUM FOR INDIAN NEUROLOGY EDUCATION ( FINE ),PUNE V. CIT(E) , PUNE

ITA 1772/PUN/2025

AI Insights

The case involves the Forum for Indian Neurology Education (the assessee) appealing against the decision of the CIT(Exemption), Pune, which rejected their application for registration under section 12A of the Income Tax Act, 1961. The CIT(Exemption) had initially granted provisional registration under section 12AB but later cancelled it due to non-compliance with requests for additional information and clarification regarding the genuineness of the assessee's activities. The Tribunal found that the assessee had indeed submitted the required details before the due date, contrary to the CIT(Exemption)'s claim, and thus decided to remand the case back for a fresh decision.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829582 (ITAT-PUNE)
• Duration Of Justice: 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Pune
• Assessment Year: misc
• Appeal Filed On: 25-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: SUHAS P BORA
• Keywords: Opportunity of being heard
• Section: 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND Ms. ASTHA CHANDRA, JUDICIAL MEMBER ITA No.1772/PUN/2025 Forum for Indian Neurology Education (Fine) Apt No.1 and 2, 1st Floor, Fortune Apartment, H.No.1206a/13, Shivaji Nagar, Pune – 411005 Vs. CIT(Exemption), Pune PAN: AAATF5430D (Appellant) (Respondent) Assessee by : Shri Suhas P Bora and Sampada Ingale, CA Department by : Shri Amol Khairnar, CIT-DR Date of hearing : 12-01-2026 Date of pronouncement : 14-01-2026 O R D E R PER R.K. PANDA, VP: This appeal filed by the assessee is directed against the order dated 27.05.2025 of the Ld. CIT(Exemption), Pune rejecting the application for grant of registration u/s 12A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 13.12.2024 for registration of the trust under section 12A(1)(ac)(vi)- ITEM(B) 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 issued through ITBA portal on 24.01.2025 requesting the assessee to upload certain information / clarification. The assessee was also Printed from counselvise.com 2 ITA No.1772/PUN/2025 requested to submit the compliance by 07.02.2025. Since the assessee did not comply to the said notice, another opportunity was granted by the Ld. CIT(E) vide notice dated 13.02.2025 requiring compliance by 21.02.2025. On verification of the details submitted by the assessee in response to the said notice and the documents submitted along with the application, various discrepancies were noticed. The assessee was requested to show cause as to why the application for registration u/s 12A should not be rejected and why the provisional registration granted earlier u/s 12AB should not be cancelled. Further, the assessee was specifically informed that in the event of failure to comply by the due date, the application shall be liable to be rejected and the registration shall also be liable to be cancelled. 3. However, the assessee did not make any submission. The Ld. CIT(E) therefore, rejected the application for grant of registration u/s 12A of the Act and also cancelled the provisional registration granted earlier u/s 12AB by observing as under: “5. The assessee was requested to show cause as to why the application should not be rejected and why the registration granted under section 12AB of the Income Tax Act, 1961 should not be cancelled. The assessee was also given opportunity of being heard vide the said notice. The assessee was specifically informed that in the event of failure to comply by the due date, the application shall be liable to be rejected and the registration shall also be liable to be cancelled. The compliance to the said notice was due on 15/04/2025. The notice was duly served on the assessee through e-portal and email. In response the assessee requested for additional time to comply and adjournment was granted till 30/04/2025 vide this office notice dated 22/04/2025. The notice was duly served on the assessee through e-portal and email. 6. Despite of cogent efforts, the assessee has not furnished any explanation to the discrepancies communicated to it, it is presumed that the assessee has nothing to say in the matter. Printed from counselvise.com 3 ITA No.1772/PUN/2025 7. It is clear from the above that the assessee was given sufficient opportunity to comply, but it has not complied to the same. It seems that the assessee is not having any supporting documents / evidence to submit. The assessee has failed to comply with the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961. Hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and the compliance to the 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. Therefore, the undersigned has left no alternative but to reject the application 8. In view of the above, the application dated 13/12/2024 filed in Form 10AB by the assessee under section 12A(1)(ac) (vi)-ITEM(B) of the Income Tax Act, 1961 is hereby rejected.” 4. Aggrieved with such order of Ld. CIT(E), the assessee is in appeal before the Tribunal. 5. The Ld. Counsel for the assessee at the outset referring to page 72 of the paper book submitted that the assessee filed an adjournment letter requesting the Ld. CIT(E) to adjourn the matter and the hearing was adjourned to 30.04.2025. However, despite the assessee furnishing the requisite details before the said date, Ld. CIT(E) held that the assessee has not filed the requisite details. He accordingly submitted that he has no objection if the matter is restored to the file of the Ld. CIT(E) with a direction to decide the issue afresh and in accordance with law. 6. The Ld. DR on the other hand heavily relied on the order of the Ld. CIT(E). 7. We have heard the rival arguments made by both the sides, perused the order of the Ld. CIT(E) and the paper book filed on behalf of the assessee. It is an admitted fact that when the assessee filed an adjournment letter requesting the Ld. CIT(E) to adjourn the matter, the Ld. CIT(E) adjourned the case to 30.04.2025. It Printed from counselvise.com 4 ITA No.1772/PUN/2025 is also an admitted fact that despite the assessee furnishing the requisite details before the said date, copies of which are filed in the paper book, we find Ld. CIT(E) held that the assessee has not filed the requisite details and rejected the application for grant of registration and also cancelled the provisional registration granted earlier. It is the submission of the Ld. Counsel for the assessee that given an opportunity the assessee is in a position to substantiate its case by filing all the relevant details before the Ld. CIT(E). Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(E) with a direction to grant one more opportunity to the assessee to substantiate its case by filing the requisite details to his satisfaction and decide the issue as per fact and law. The assessee is also hereby directed to submit the details as called for by the Ld. CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the Ld. CIT(E) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 14th January, 2026. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated: 14th January, 2026 GCVSR Printed from counselvise.com 5 ITA No.1772/PUN/2025 आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune S.No. Details Date Initials Designation 1 Draft dictated on 12.01.2026 Sr. PS/PS 2 Draft placed before author 13.01.2026 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Office Superintendent 10 Date on which file goes to the A.R. 11 Date of Dispatch of order Printed from counselvise.com "