Solapur Ophthalmological Society, Solapur V. Commissioner of Income Tax, Exemption, Pune

ITA 1021/PUN/2023

• Counselvise Citation: [2023] 102 COUNSELVISE.COM (IT) 0593 (ITAT-PUNE)
• Duration Of Justice: 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 22-10-2023
• Assessment Year: misc
• Appeal Filed On: 21-09-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESARI LD.
• Assessee Lawyers: P. D. KUDVA LD.
• Keywords: Charitable institution; Set aside
• Section: 80G

Judgement Text

॥आयकर अपीलीय न्यायाधिकरण, पुणे “बी” न्यायपीठ, पुणे में॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE ‘B’ BENCH, PUNE BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1021/PUN/2023 Solapur Ophthalmological Society, 156/6, Railway Lines, Solapur North Solpaur-413001 PAN: AAYTS2215D .......अपीलाथी / Appellant बनाम / V/s The Commissioner of Income Tax (Exemption), Pune ....... प्रत्यथी / Respondent द्वारा/ Appearances Assessee by : Mr P. D. Kudva [‘Ld. AR’] Revenue by : Mr Ajay Kumar Kesari [‘Ld. DR’] सुनवाई की तारीख / Date of conclusive Hearing : 23/10/2023 घोषणा की तारीख / Date of Pronouncement : 23/10/2023 आदेश / ORDER PER G. D.PADMAHSHALI; The present appeal of the assessee challenges order of rejection passed u/s 12A(1)(ac)(vi)of the Act by the Commissioner of Income Tax (Exemption), Pune [for short ‘CIT(E)’] vide DIN & order No. ITBA/EXM/F/EXM45/2023-24/1054634477(1) dt. 26/07/2023. 2. We note that, the appellant vide Form No. 10AB dt. 23/02/2023 made an application to the respondent under clause (iii) of section 12A(1)(ac) of the Act thereby sought regular/final registration u/s 12AB of the Act. The appellant’s failure to annexe required documents as contemplated u/r 17A(2)(k) of IT-Rules, the Ld. CIT(E) by notice dt. 22/05/2023 accorded an opportunity to make good the deficiency of the application, the assessee Solapur Ophthalmological Society ITA No. 1021/PUN/2023 ITAT-Pune Page 2 of 4 supplied requisite documents. The Ld. CIT(E) noted certain discrepancies from the submission of the appellant; resultantly by a notice dt. 14/07/2023 the appellant was again called upon to cure the defects and clarify the discrepancies; however this notice remain unattended for a good reason of missing the deadlines within which the appellant was allowed to explain and clarify the discrepancies. 3. In the absence of compliance, the Ld. CIT(E) rejected to grant regular registration and provisional registration granted to the appellant u/s 12AB r.w.s. 12A(1)(ac)(vi) of the Act is cancelled as he could not draw any satisfactory conclusion about the genuineness of activities of the appellant and satisfaction over compliance of requirements of any other law for the time being in force by the trust / institutions as are material for the purpose of achieving its objects. 4. At the outset, without referring to the metis of case, the Ld. AR submitted that, having prepared reply against discrepancies communicated, the appellant failed to submit the same within a short time of seven days allowed to it, which ultimately resulted into the rejection of its application. Therefore appellant seeks one more fair opportunity to represent its case before the registering authority. Per contra, the Ld. DR contended that, second notice communicating various discrepancies was served on 14/07/2023, although it was due for compliance by 20/07/2023, however till the culmination of proceedings the appellant didn’t bother to make any submission. Therefore this lapse is solely attributable to the assessee’s lackadaisical approach; hence a reasonable cost may be imposed if appellant’s request for remand is considered positively. Solapur Ophthalmological Society ITA No. 1021/PUN/2023 ITAT-Pune Page 3 of 4 5. We have heard both the parties to the dispute; and subject to the provisions of rule 18 of ITAT-Rules, 1963 perused material placed on record. 6. At the outset, we note that, the Ld. CIT(E) after his preliminary verification of application and detailed submission made by the appellant, has noted certain discrepancies and communicated the same literally allowing seven days to cure the defect with necessary details and explain the discrepancies, and within next seven days therefrom has culminated the registration proceedings by an impugned order of rejection. It is to be appreciated that, the very purpose of the provisions for registration of trust u/s 12A/12AB and granting of recognition u/s 80G of the Act derives their spirit from Directive Principles of State Policy enshrined in the Constitution of India. The Govt. of India makes every endeavour to provide welfare to one and all. In view thereof registrations to charitable trusts are given in order to ensure certain benefits flows to entire society therefrom. Thus the Directive Principles of State Policy are achieved. These provisions of registration u/s 12A/12AB and u/s 80G of the Act enhance socio economic welfare of the society. Furthermore, Income Tax laws are welfare legislations and not penal in nature, therefore, in larger interest of justice assessee was remained to be given fair opportunity to represent its entitlement for registration. 7. With the forgoing observations, we are of the considered view that, the present appellant was not provided with reasonable time to make good the defect or remove the discrepancies notified to it. Therefore in all the fairness the assessee society deserves to be re-heard one more time with Solapur Ophthalmological Society ITA No. 1021/PUN/2023 ITAT-Pune Page 4 of 4 a clear opportunity. Thus in view thereof, without offering our comment on merits of the case, we set aside the impugned order of rejection and remit the matter back to the Ld. CIT(E) for de-nova consideration preferably in two effective hearings. 8. Needless to say that, the appellant shall comply with the direction of registering authority by adhering to timeliness, seeking no unreasoned adjournment. 9. In result, the appeal is ALLOWED FOR STATISTCIAL PURPOSES. U/r 34 of ITAT Rules, order pronounced in open court on this Monday 23 th day of October, 2023. -S/d- -S/d- SATBEER SINGH GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ PUNE ; दिन ांक / Dated : 23 rd day of October, 2023. आदेशकीप्रधिधलधपअग्रेधिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr.CIT(Exemption),Pune 4. The CIT-Concerned(MH-India) 5. DR, ITAT, Pune Bench ‘A’, Pune 6.ग र्डफ़ इल / Guard File. SGR* आिेश नुस र / By Order वररष्ठदनजीसदिव / Sr. Private Secretary आयकरअपीलीयन्य य दिकरण, पुणे / ITAT, Pune.