GODAVARI SHIKSHAN MANDAL,NASHIK V. CIT EXEMPTION, PUNE

ITA 629/PUN/2025

AI Insights

The case involves Godavari Shikshan Mandal, which appealed against the order of the CIT(Exemption), Pune, rejecting their application for registration under section 12A of the Income Tax Act, 1961, and cancelling the provisional registration under section 12AB. The CIT(E) had found discrepancies in the details provided by the assessee and noted non-compliance in submitting required documents. The Tribunal, considering the circumstances and the fact that the Secretary of the trust is a Chartered Accountant, decided to give the assessee another opportunity to comply and substantiate their case, while also imposing a cost for the non-compliance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46953 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M.M.CHATE
• Assessee Lawyers: CHARUHAS D UPASANI
• Keywords: Principle of natural justice
• 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.629/PUN/2025 Assessment year : 2024-25 Godavari Shikshan Mandal, Nashik G.D. Sawant Arts, Commerce & BCS College, Suchita Nagar, Mumbai Agra Road, Nashik - 422009 Vs. CIT (Exemption), Pune PAN: AAATG3326R (Appellant) (Respondent) Assessee by : Shri Charuhas D Upasani Department by : Shri M.M. Chate Date of hearing : 09-04-2025 Date of pronouncement : 11-04-2025 O R D E R PER R. K. PANDA, VP : This appeal filed by the assessee is directed against the order dated 15.10.2024 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’) and cancelling the provisional registration granted earlier u/s 12AB of the Act. 2. Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 02.04.2024 for registration of the trust under clause (iii) of section 12A(1)(ac) 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 2 ITA No.629/PUN/2025 force by the trust / institution as are material for the purpose of achieving its objects, a notice was issued through ITBA portal on 04.06.2024 requesting the assessee to upload certain information / clarification. The assessee furnished certain details from which the Ld. CIT(E) noticed certain discrepancies. Therefore, he issued another notice to the assessee. Since the assessee did not submit the requisite details as called for by the Ld. CIT(E), he 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: “6. It is also seen that the assessee has obtained regular registration under section 12AB of the Act read with clause (i) of section 12A(1)(ac) of the Act on 28/10/2021 but the assessee was not registered under section 12A/12AA of the Act prior to 01/04/2021 since the copy of such registration was neither attached with the original application while applying for such registration nor during the present proceedings. Therefore, the regular registration found to be invalid. 7. It is clear from the above that the assessee was given sufficient opportunity to comply, but it has not submitted any compliance. It seems that the assessee is not having any supporting documents / evidence to submit. 8. The assessee has not furnished the copy of provisional registration under section 12AB of the Act hence the prerequisite for the present application under clause (iii) of section 12A (1) (ac) of the Act is not fulfilled in this case. Further, the regular registration obtained by the assessee is also found to be invalid. 9. In view of the above, the application filed by the assessee is treated as non- maintainable and hence, 'rejected' for statistical purposes without going into the merits of the case and no adverse inference is drawn against the assessee.” 3. Aggrieved with such order of Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds: 1. Whether on the facts and circumstances of the case and in law, the Hon'ble Commissioner of Income (Exemption), Pune has erred by not giving the appellant the sufficient opportunity to present the documents which is against the Principle of Natural Justice. 3 ITA No.629/PUN/2025 2. Whether on the facts and circumstances of the case and in law, the Hon'ble Commissioner of Income (Exemption), Pune has erred by not reopening the window for submission. 3. Whether on the facts and circumstances of the case and in law, the Hon'ble Commissioner of Income (Exemption), Pune erred in not deciding the matter on merit in spite of the fact that the Trust regularly complies with all the provisions of Income Tax Act, 1961 within stipulated time since last two decades. 4. The assessee craves liberty to add, alter or amend any ground/ grounds of appeal. 4. The Ld. Counsel for the assessee submitted that due to preoccupation of the concerned Chartered Accountant, the details could not be filed. He submitted that given an opportunity the assessee is in a position to substantiate its case by filing all the relevant details for deciding the issue afresh. He accordingly submitted that the matter may be restored to the file of the Ld. CIT(E). 5. The Ld. DR on the other hand strongly objected to the arguments advanced by the Ld. Counsel for the assessee and submitted that the Secretary of the foundation is a Chartered Accountant. Therefore, he cannot say that the assessee was not aware of the requirements as per law. He submitted that the Ld. CIT(E) has passed a detailed order rejecting the application for grant of registration and also cancelling the provisional registration granted earlier due to the non- compliance. Therefore, the same should be upheld and the appeal filed by the assessee be dismissed. He also submitted that heavy cost should be imposed on the assessee for such non-compliance. 4 ITA No.629/PUN/2025 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 due to non submission of the requisite details, the Ld. CIT(E) 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 CIT(E) with a direction to grant one final 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 CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the CIT(E) is at liberty to pass appropriate order as per law. 7. We see from the Affidavit filed by the Secretary of the trust that he is a Chartered Accountant who is supposed to know the law. Therefore, considering the totality of the facts of the case and considering the fact that there was persistent non-compliance from the side of the assessee trust, we impose a cost of Rs.2,500/- on the assessee which is to be deposited within 30 days from the receipt of this order. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 5 ITA No.629/PUN/2025 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 11th April, 2025. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 11th April, 2025 GCVSR 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 09.04.2025 Sr. PS/PS 2 Draft placed before author 09.04.2025 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 "