Vinoba Bhave Gramvikas Pratishthan, Ahmednagar V. Commissioner of Income Tax, Exemption, Pune, Pune

ITA 1094/PUN/2023

• Counselvise Citation: [2023] 101 COUNSELVISE.COM (IT) 9701 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 27-11-2023
• Assessment Year: misc
• Appeal Filed On: 16-10-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Corroborative evidences; Set aside
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE „B‟ BENCHES :: PUNE BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER & SHRI G.D. PADMAHSHALI, ACCOUNTANT MEMBER (Through virtual hearing) ITA Nos.1093 & 1094/PUN/2023 Vinoba Bhave Gramvikas Pratishthan at Malthan, Post Nimgaon, Daku, Tal-Karjat, Dist. Ahmednagar. PAN: AAATV 3131 F vs CIT (Exemption), Pune. Appellant Respondent Assessee by : Shri Prasad S. Bhandari, CA Revenue by : Shri Ajay Kumar Kesari & Shri M.G. Jasnani, DRs Date of hearing : 28/11/2023 Date of pronouncement : 30/11/2023 ORDER Per PARTHA SARATHI CHAUDHURY, JM: These appeals preferred by the assessee emanates from the separate orders of Commissioner of Income Tax [Exemption], Pune (for short, „CIT(E)‟), both dated 28.07.2023 as per the grounds of appeal on record. These matters were heard together and are disposed of vide this consolidated order. 2. In these appeals, the assessee is aggrieved with the decision of the Department in rejecting the application for registration u/sec. 12AA of the Act and also for denying exemption u/sec. 80G(5) of the Act. 3. We have perused both the orders of the ld.CIT(E) in the ITA Nos.1093 & 1094/PUN/2023 Vinoba Bhave Gramvikas Pratishthan 2 respective appeals before us. It is observed that in both the cases, whether it is for seeking registration u/sec. 12AA or exemption u/sec. 80G(5) of the Act, certain details were called from the assessee applicant by the office of the ld.CIT(E) in order to verify the genuineness of the activities of the assessee and also whether the assessee was complying with the applicable laws in force during the relevant period of time while performing the objects and charitable activities as per its object clause. This was in regard to the application for registration u/sec. 12AA of the Act. That, with regard to the application for exemption u/sec. 80G of the Act, the Department had to verify whether the activities of the applicant-trust was for the charitable purpose or not and also whether the fund had been spent by such applicant in furtherance of the object clause of such applicant- trust, and therefore, in this regard also, various details were called from the assessee-applicant by the office of the ld.CIT(E). The assessee had complied with the first notice in both the cases where the details were provided to the Department. That, on perusal of these details/evidences furnished by the assessee, certain discrepancies were pointed out which were further communicated to the assessee vide another notice and it was specifically asked that the assessee should provide relevant reply and supporting evidences with regard to the said discrepancies. This second notice issued to the assessee, though duly served as per records, there were no response from the side of the assessee in both the cases. The Department ITA Nos.1093 & 1094/PUN/2023 Vinoba Bhave Gramvikas Pratishthan 3 came to the conclusion that, therefore, the assessee does not have anything more to say on the issue and accordingly, the respective applications were rejected. 4. We are of the considered view that it is a case where the application for registration of a trust and exemption sought for was filed by the assessee, and for want of supporting evidences, the matter was rejected by the Department. It has to be appreciated that the purpose of the provisions for registration of trust u/sec. 12AA and for granting exemption u/sec. 80G, all these sections derives their spirit from the Directive Principles of State Policy enshrined in the Constitution of India. Since, the Govt. of India makes endeavor to provide welfare to one and all in the society at large and in view thereof the registration for public charitable trusts are given in order to ensure that through these charitable trusts benefits should flow to the entire society wherefrom various charitable activities, the entire society is benefited and the objectives of the Govt. of India in furtherance to the Directive Principles of State Policy are achieved. These provisions for the trust registration and granting of exemption u/sec. 80G enhance the socio economic welfare in the society. Furthermore, the Income Tax laws are welfare legislations and not penal in nature. Therefore, in the interest of justice and considering all the aforestated observations, we are of the considered view that one final opportunity should be provided to the assessee to file the relevant details before the ld.CIT(E) and present their cases on merits. ITA Nos.1093 & 1094/PUN/2023 Vinoba Bhave Gramvikas Pratishthan 4 That, after all the power always remains with the ld.CIT(E) as per the Act to either grant or reject the applications regarding the concerned issue but that decision should come after examining and verifying all documentary evidences furnished by the applicant-assessee. In view thereof, we set aside the order of the ld. CIT(E) in both the cases and remand the matters back to his file with the aforesaid directions and the ld. CIT(E) shall adjudicate denovo as per law complying with the principles of natural justice. Grounds of appeals of the assessee stands allowed for statistical purpose. 5. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in open Court on 30 th November, 2023. Sd/- Sd/- (G.D. PADMAHSHALI) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 30 th November, 2023 vr/- Copy to : 1. The Appellant. 2. The Respondent. 3. The Pr. CIT concerned. 4. The DR, ITAT, “B” Bench Pune. 5. Guard File. By Order // TRUE COPY // Senior Private Secretary ITAT, Pune.