HOTFUT FOUNDATION ,PUNE V. CIT EXEMPTION , PUNE

ITA 1087/PUN/2025

AI Insights

Hotfut Foundation, a charitable organization, appealed against the order of the CIT (Exemption) which denied their application for regular registration under section 12AB of the Income Tax Act, 1961. The CIT (Exemption) had refused the registration citing the commercial nature of activities and absence of charitable activities, without providing a personal hearing or conducting a physical verification. The ITAT noted the appellant's compliance with previous notices and granted them another opportunity to present their case, emphasizing the importance of a personal hearing in such matters.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791232 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 29-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Keywords: Set aside; Reasonable cause; Charitable institution

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1087/PUN/2025 Hotfut Foundation, F1-04, F1-11, SN-12/2/4/2, Shiv Complex, Kondhwa Bk, Puna Saswad Road, Haveli, Pune 411 048 Maharashtra PAN : AADCH2076D Vs. CIT (Exemption) Appellant Respondent आदेश / ORDER PER DR. MANISH BOARD, ACCOUNTANT MEMBER : The captioned appeal at the instance of appellant is directed against the order dated 28.02.2025 framed by CIT (Exemption) denying application filed u/s.12A(1)(ac)(iii) of the Income Tax Act, 1961 (in short ‘the Act’) for grant of regular registration. 2. When the case called for, none appeared on behalf of the appellant despite due service of notice of hearing. Even on the previous date of hearing, i.e. 21.08.2025 and 03.11.2025, there was no appearance from the side of appellant. We therefore proceed to adjudicate the appeal with the assistance of ld. DR and the available records. Appellant by : None Respondent by : Shri Amol Khairnar Date of hearing : 04.12.2025 Date of pronouncement : 11.12.2025 Printed from counselvise.com ITA No.1087/PUN/2025 Hotfut Foundation 2 3. Appellant has raised following grounds of appeal : “1. The learned CIT, Exemption, Pune; erred in law and on facts in not granting registration under section 12AB of the Income Tax Act, 1961 to appellant without giving any personal hearing opportunity and without undertaking any physical verification to examine the genuineness of the appellant. 2. The learned CIT, Exemption, Pune; erred in law and on facts in not granting registration under section 12AB of the Income Tax Act, 1961 to the appellant by stating that appellant is sharing revenue with the academies with which it collaborates, thereby considering the activities of the appellant as of commercial nature. 3. The learned CIT, Exemption, Pune; erred in law and on facts in not granting registration under section 12AB of the Income Tax Act, 1961 to appellant without raising discrepancies/issues relating to details of charitable activities carried out in show cause notice and thereby rejecting the registration of the appellant on the basis of those discrepancies/issues. 4. Appellant craves leave to add, alter, clarify, explain, modify, delete any of the grounds of appeal, and to seek any just and fair relief.” 4. Ld. DR supported the order of ld.CIT(E). 5. We have heard the ld. DR and perused the record placed before us. We observe that the appellant is a Charitable Organisation and it filed the application for regular registration u/s.12A(1)(ac)(iii) of the Act on 29.09.2024. Appellant has been granted provisional registration vide order dated 21.07.2023. The main object of the appellant is to promote Sports, Athletics, Games, Fitness, Nutritional Awareness within India and abroad etc. After the application for regular registration on Form No.10AB, certain details were called for by ld.CIT(E) to which compliances was made by uploading documents on 29.09.2024, 05.11.2024 and 05.02.2025. Ld.CIT(E) vide impugned order has refused to grant registration on account of delay in filing the application, commercial nature of activities and absence of charitable activity. We observe that the appellant has raised Ground Printed from counselvise.com ITA No.1087/PUN/2025 Hotfut Foundation 3 No.1 seeking one more opportunity and requesting for personal hearing so that it can demonstrate before ld.CIT(E) about the genuineness of the charitable objects and charitable activities carried out by the appellant. 6. Considering the fact that appellant has complied to most of the notices issued by ld.CIT(E), we deem it appropriate that in the interest of justice and being fair to both the parties, assessee deserves one more opportunity. Therefore, the issues raised in the instant appeal are remitted back to the file of ld.CIT(E) for necessary adjudication. Needless to mention that ld.CIT(E) shall afford reasonable opportunity to the appellant in the set aside proceedings. Appellant is directed to update latest email id and contact detail on ITBA portal. Appellant is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and ground of appeal No.1 raised by the appellant is allowed for statistical purposes. 7. Since in the Ground No.1, we have remitted the issues to the file of ld.CIT(E) dealing with remaining grounds would be merely academic in nature. 8. In the result, the appeal filed by the appellant is allowed for statistical purposes as per terms indicated hereinabove. Order pronounced on this 11th day of December, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 11th December, 2025. Satish Printed from counselvise.com ITA No.1087/PUN/2025 Hotfut Foundation 4 आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “A” ब\u0014च, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar, आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "