GOVIND FOUNDATION PHALTAN,SATARA V. CIT EXEMPTION PUNE, PUNE

ITA 2227/PUN/2024

AI Insights

The case involves the Govind Foundation, which appealed against the decision of the CIT, Exemption, Pune, rejecting their application for registration under section 12AB of the Income Tax Act. The CIT, Exemption, Pune had initially rejected the application due to discrepancies found in the documentation and information provided by the foundation regarding their charitable activities. These included issues with the authenticity of bills, lack of detailed beneficiary information, and insufficient evidence of the claimed activities. The Tribunal, after considering the submissions and the material on record, decided to remand the matter back to the CIT, Exemption, Pune for a re-evaluation, emphasizing the need for a fair hearing and the opportunity for the foundation to clarify and substantiate their claims.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 832188 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 25-10-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: KISHOR B. PHADKE

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2227/PUN/2024 Govind Foundation, Shop No.94 50 At Kolki, Pune Pandharpur Road, Phaltan, Satara- 415523. PAN : AAICG1564G Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 26.09.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act. 2. Facts of the case, in brief, are, that the assessee has filed application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act on 29.03.2024. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the Assessee by : Shri Kishor B. Phadke Revenue by : Shri Amol Khairnar Date of hearing : 06.01.2026 Date of pronouncement : 23.01.2026 Printed from counselvise.com ITA No.2227/PUN/2024 2 trust/institution as are material for the purpose of achieving its objects, a notice was issued by Ld, CIT, Exemption, Pune through ITBA portal on 27.05.2024 requesting the assessee to upload certain information/clarification. In reply to the said notice, the desired information was furnished by the assessee. On verification of the information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies, therefore, issued another notice on 03.09.2024 and asked the assessee to furnish various other details. The assessee furnished its response on 10.09.2024. However, not being satisfied with the above reply, Ld. CIT, Exemption, Pune rejected the application filed by the assessee by observing as under :- “6.1 The trust has claimed distribution of wheat and rice free of cost. However, on verification it is observed that most of the bills are handwritten letters/ notes from individuals claiming to have sold grain to the trust. Also, the assessee trust has failed to provide the details of beneficiaries as to their names, how the beneficiaries were identified. date and place of distributions of the food to each beneficiaries. The list of persons that is provided is that of daily register of farmers, family register etc. which does not contan requisite details. It is also seen that few invoices furnished by assessee regarding purchase of grain are of a concern which deals in sell of packaging bags (bardan) and not grain. As such, authenticity of such bills remained questionable. 6.2 The assessee has claimed distribution of medicines (Arsenic Album 30). However, the trust has failed to submit details of beneficiaries as to how the beneficiaries were identified, distributions of the said medicines to each beneficiaries. Also, there's no details of appointment of any doctor and the reason for the purchase and distribution of the said medicines. Printed from counselvise.com ITA No.2227/PUN/2024 3 6.3 The activity details of tree planation carried out at Shrimanta Shivajiraje School are not conclusive. While it is claimed to have planted 130 coconut trees in the school, the receipt issued by school narrates that the school has received sum of Rs. 33150/- on account of sell of coconuts plants. In respect of various claimed tree plantation activities, no documentary evidence such as permission/ appreciation of letter of owner, local authority has been furnished. There are no signage or banners displayed in the photographs so as to show association of the assessee with said activities. Further, there is no supporting documents such permission letter from the Phaltan Municipal Corporation regarding beautification of Phaltan city nor the claimed activity is supported with any credible photographs. 6.4 In respect of the biodigester machine (purchased in the year 2021) the trust has failed to provide any credible evidences such as photographs of installation of the machine, its work and usage / how it benefits and supports the development of rural areas. In beneficiary's letter dt. 01/05/2021, the intent of the machine is mentioned as providing training to farmers and use as demo-model. However, no details of such activities in subsequent three years has been given by the assessee. The trust has also claimed to have conducted guiding programs of herbal and medicinal plants for the farmers however, the assessee has not submitted any credible evidences such as identification of beneficiaries, details of conducting the said programs conducted etc. 7. Considering the above facts discussed in the show-cause notice and discrepancies noticed, the undersigned is not satisfied about the charitable nature and the genuineness of activities of the assessee. 8. In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 24/06/2022 under section 12AB read with section 12A(1)(ac)(vi) of the Income Tax Act, 1961 is hereby cancelled.” 3. It is the above order against which the assessee is in appeal before this Tribunal. 4. Ld. AR appearing from side of the assessee trust submitted before us that order passed by Ld. CIT, Exemption, Pune is unjustified. Ld. AR further submitted that each and every detail Printed from counselvise.com ITA No.2227/PUN/2024 4 desired by Ld. CIT, Exemption, Pune was furnished through online reply, however no such details, on the basis of which application for registration was rejected, were desired by Ld. CIT, Exemption, Pune. Ld. AR accordingly requested that if one opportunity is provided the assessee is in a position to furnish each and every detail required by Ld. CIT, Exemption, Pune. 5. Ld. DR appearing from side of the Revenue supported the order passed by Ld. CIT, Exemption, Pune & requested to confirm the same. 6. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper book furnished by the assessee. In this regard, we find that the assessee has already filed various details before Ld. CIT, Exemption, Pune and rest of the information is also available, which the assessee is ready to furnish before Ld. CIT, Exemption, Pune. Considering the totality of the facts of the case and in the interest of justice, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to his file with a direction to decide the application for registration afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the Printed from counselvise.com ITA No.2227/PUN/2024 5 notices issued by Ld. CIT, Exemption, Pune in this regard and to produce relevant documents/evidences, if any, in support of application for registration u/s 12A(1)(ac)(iii) of the IT Act without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds raised by the assessee are partly allowed. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 23rd day of January, 2026. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 23rd January, 2026. 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 // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "