GEMS CHAMBER OF COMMERCE ASSOCIATION,NASHIK V. CIT(EXEMPTION), PUNE

ITA 2527/PUN/2024

AI Insights

The case involves the Gems Chamber of Commerce Association appealing against the decision of the CIT(Exemption), Pune, which rejected their application for approval under section 80G of the Income Tax Act, 1961. The rejection was based on the assessee's failure to respond to notices regarding discrepancies in their application. The Tribunal noted that despite the rejection of the 80G application, the CIT(Exemption) had granted permanent registration under section 12AB(1)(b) of the Act. Considering these circumstances, the Tribunal decided to allow the appeal for statistical purposes and restore the matter to the CIT(Exemption) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474220 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: AKSHAY MODI
• Section: 80G

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.2527/PUN/2024 Gems Chamber of Commerce Association Plot No.48, 3rd Floor, S.No.733/2A/5/6, Shree Ganesh Anand Parijat Nagar, Nashik – 422005 Vs. CIT(Exemption), Pune PAN: AACTG9385N (Appellant) (Respondent) Assessee by : Shri Akshay Modi Department by : Shri Amol Khairnar, CIT-DR Date of hearing : 10-03-2025 Date of pronouncement : 19-03-2025 O R D E R PER R. K. PANDA, VP : This appeal filed by the assessee is directed against the order dated 13.09.2024 of the Ld. CIT(Exemption), Pune rejecting the application for approval u/s 80G 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 28.03.2024 for approval under sub clause (B) of (iv) of first proviso to sub section (5) of section 80G of the Act. With a view to verify the genuineness of the activities of the assessee and fulfillment of conditions laid down in clause (i) to (v) of section 80G(5) of the Act, a notice was issued through ITBA portal on 23.05.2024 requesting the assessee to upload certain information / clarification. 2 ITA No.2527/PUN/2024 The assessee filed certain details which were verified by the Ld. CIT(E). Upon verification, he noted certain discrepancies for which another notice was issued to the assessee. However, the assessee did not file any response to the same for which the Ld. CIT(E) rejected the application for grant of approval u/s 80G by observing as under: “5. The assessee was requested to show cause as to why the application should not be rejected and why the approval granted under section 80G(5) 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 approval shall also be liable to be cancelled. The compliance to the said notice was due on 05/09/2024. The notice was duly served on the assessee through e-portal and email. 6. Since, 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. 7. Considering the above facts discussed in the show cause notice and discrepancies noticed and without prejudice to the above, as per financial the statements and ITRs furnished by the assessee, it is seen that the trust has claimed deduction u/s 11. Therefore, said provisions of sec.80G(5)(iv)(B) of the Act are not applicable in the assessee's case. And thus, the undersigned is not satisfied about the fulfilment of conditions laid down in clause (i) to (v) of section 80G(5) of the Act and has left no alternative but to reject the application. 8. In view of the above, the application under sub clause (B) of (iv) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 filed by the assessee is hereby rejected.” 3. Aggrieved with such order of Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds: (1) On the facts and in the circumstances of the case as well in law, the CIT (Exemption) erred in assuming jurisdiction under third proviso Clause (b) Sub Clause (B)(II) below Section 80G(5) of the I.T. Act, 1961 to pass the order in Form 10AD (being the Order appealed against) rejecting the application for renewal of the existing approval granted u/s 80G(5) of the Act granted in Form 10AC on 10-03-2022 for and from the Asstt. Year. 3 ITA No.2527/PUN/2024 2022-23 to 2024-25 purely on mis-conceptual inferences and misreading of the provisions of the law treating the application rejected as non- maintainable and hence, the CIT(E)'s action passing the order in Form 10AD being without jurisdiction, bad in law, perverse, prejudicial, arbitrary, unwarranted of facts and material on records, illegal and invalid, is liable to be quashed or annulled in toto. (2) Your appellant further reserves it's rights to add, alter, amend or modify any of the aforesaid grounds before or at the time of hearing of the appeal. 4. The Ld. Counsel for the assessee referring to the copy of registration granted u/s 12AB(1)(b) of the Act dated 18.11.2024, copy of which is placed at pages 1 to 4 of the paper book, submitted that the Ld. CIT(E) before considering the application for grant of registration u/s 12AB, rejected the approval u/s 80G. He submitted that since the Ld. CIT(E) has granted permanent registration u/s 12AB(1)(b), therefore, the matter may be restored to the file of the Ld. CIT(E) for deciding the issue afresh. 5. The Ld. DR has no objection for the same. 6. 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 the assessee did not respond to the notice issued by the Ld. CIT(E) pointing out certain discrepancies in the submissions filed by the assessee for which he rejected the application filed for approval of deduction u/s 80G. It is also an admitted fact that the Ld. CIT(E) has granted permanent registration to the assessee u/s 12AB(1)(b) of the Act which is after rejection of the application for 4 ITA No.2527/PUN/2024 grant of approval u/s 80G. 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 the requisite details. 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. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 19th March, 2025. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 19th March, 2025 GCVSR 5 ITA No.2527/PUN/2024 आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune S.No. Details Date Initials Designation 1 Draft dictated on 10.03.2025 Sr. PS/PS 2 Draft placed before author 18.03.2025 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 Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order "