FRIENDS EDUCATION SOCIETY KAIJ,BEED V. CIT (EXEMPTIONS), PUNE

ITA 1130/PUN/2025

AI Insights

The case involves Friends Education Society Kaij, an educational institution, appealing against the decision of the CIT, Exemption, Pune, which rejected their application for registration under section 80G of the Income Tax Act. The primary reasons for rejection were the absence of registration under sections 12AB and 10(23C) of the IT Act, and insufficient details regarding donations received for building funds. The Tribunal considered the arguments that the society, being non-profit and with receipts under Rs. 5 crores, is exempt from certain registrations and that it had provided most of the required information. The Tribunal decided to remand the case for a fresh evaluation, emphasizing the need for a fair opportunity for the assessee to present complete information.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714557 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2025
• 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: BHUPENDRA SHAH VIRTUAL
• Section: 11; 12; 80G

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.1130/PUN/2025 Friends Education Society Kaij, Shikshak Colony, Beed Road, Kaij, Beed- 431517. PAN : AAAAF3434G Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 08.04.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 80G of the IT Act. 2. Facts of the case, in brief, are, that the assessee filed its application for registration in Form No.10AB under sub-clause (B) of (iv) of first proviso to sub-section (5) of section 80G of the IT Act on 30.10.2024. With a view to verify the genuineness of activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G(5) of the IT Act, a notice was issued Assessee by : Shri Bhupendra Shah (Virtual) Revenue by : Shri Amol Khairnar Date of hearing : 07.08.2025 Date of pronouncement : 08.08.2025 Printed from counselvise.com ITA No.1130/PUN/2025 2 through ITBA portal on 23.11.2024. Since the assessee did not respond to the said notice another notice was issued on 23.12.2024 requesting the assessee to upload certain information/clarification on or before 31.12.2024. In compliance to the above notice, desired information was furnished by the assessee. After verifying these details, Ld. CIT, Exemption, Pune found that the assessee is neither registered u/s 12AB of the IT Act nor registered u/s 10(23C) of the IT Act. Ld. CIT, Exemption, Pune also found that the assessee has not furnished year-wise details of addition to building fund and other funds with evidence of its source and complete details of the persons like address, PAN, mode of payment, receipt no. issued and copy of direction from the persons are not furnished, accordingly Ld. CIT, Exemption, Pune was of the view that the genuineness of these receipts remain doubtful. It was also observed that the receipts in building fund account have not been routed through income and expenditure account. Consequently, Ld. CIT, Exemption, Pune was of the view that the assessee failed to prove the genuineness of the above donations which remained doubtful and accordingly the application for approval u/s 80G(5) of the IT Act was rejected. It is the above order against which the assessee is in appeal before this Tribunal. Printed from counselvise.com ITA No.1130/PUN/2025 3 3. Ld. AR appearing from the side of the assessee submitted before us that the application for registration u/s 80G(5) was rejected on following two reasons :- (i) The assessee is not registered u/s 12AB or section 10(23C) of the IT Act. (ii) The assessee has not produced the complete details of donations received in building funds. 4. With regard to above reason no.1, the counsel of the assessee submitted before the Bench that the assessee is engaged in providing education and does not exist for earning profit and its receipts are less than Rs.5 crores, therefore in the light of section 10(23C) sub-section (iiiad) of the IT Act the income of the assessee is exempted & assessee is not required to get any registration under section 10(23C) of the IT Act. Apart from this, the assessee has not claimed any exemption u/s 11 & therefore he is also not required to get registered u/s 12AB of the IT Act. 5. Regarding above reason no.2, the counsel of the assessee submitted before us that most of the information was provided before Ld. CIT, Exemption, Pune, however, if some information still remains to be produced the same shall be produced before Ld. CIT, Exemption, Pune if one more opportunity of hearing is Printed from counselvise.com ITA No.1130/PUN/2025 4 provided to the assessee. Accordingly Ld. AR requested to set-aside the order passed by Ld. CIT, Exemption, Pune. 6. Ld. DR appearing from the side of the Revenue supported the order passed by Ld. CIT, Exemption, Pune and requested to confirm the same. 7. We have heard Ld. Counsels from both the sides and perused the material available on record. In this regard, we find that the assessee is engaged in providing education and does not exist for earning profits. We also find that its gross receipts are less than Rs.5,00,00,000/- therefore its income is exempted u/s 10(23C)(iiiad) of the IT Act & therefore section 11 or section 12 has no application in its case & accordingly there is no requirement to get any kind of registration either u/s 12AB or u/s 10(23C)(iiiad) of the IT Act. Secondly, it was the contention of Ld. Counsel of the assessee that complete details of persons who donated the funds for building funds and the details of direction given by them are available on record and if one opportunity of hearing is provided to them the desired information shall be furnished before Ld. CIT, Exemption, Pune. 8. Considering the totality of the facts of the case and also in the interest of justice, without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Printed from counselvise.com ITA No.1130/PUN/2025 5 Pune and remand the matter back to him with a direction to decide the application for approval u/s 80G(5) of the IT Act afresh, 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 in this regard and produce requisite information/documents in support of registration u/s 80G(5) of the IT Act, 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 in this appeal are partly allowed. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 08th day of August, 2025. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 08th August, 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. Printed from counselvise.com "