Swa. Ma. Aam. Shivajirao Bapu Nagawade Medical Foundation, Ahmednagar V. The Commissioner of Income Tax (Exemption), Pune

ITA 1166/PUN/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 5057 (ITAT-PUNE)
• Duration Of Justice: 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 28-11-2023
• Assessment Year: misc
• Appeal Filed On: 06-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESARI LD.
• Keywords: Set aside
• Section: 80G

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे ‘बी’ न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE ‘B’ BENCH, PUNE BEFORE SHRI PARTHA SARATHI CHOUDHURY, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपील स ं . / ITA No. 1166/PUN/2023 Swa. Ma. Aam. Shivajirao Bapu Nagawade Medical Foundation Shrigonda A/p-Shrigonda, Shrigonda, Ahmednagar-413726 PAN: AAYTS7472G . . . . . . . अपीलार्थी / Appellant बनाम / V/s The Commissioner of Income Tax (Exemption), Pune . . . . . . . प्रत्यर्थी / Respondent द्वारा / Appearances Assessee by : None for the Assessee Revenue by : Mr Ajaykumar Kesari [‘Ld. DR’] स ु नवाई की तारीख / Date of conclusive Hearing : 29/11/2023 घोषणा की तारीख / Date of Pronouncement : 29/11/2023 आदेश / ORDER PER G. D. PADMAHSHALI, AM; The present appeal of the assessee impugns DIN & Order No. ITBA/EXM/F/EXM45/2023-24/1056022825(1) dt. 1309/2023 passed by Ld. CIT(E) u/s 12AB(1)(b)(ii) of the Income Tax Act [‘the Act’ hereinafter]. 2. In absence of appellant, with the able assistance from Ld. DR we deem fit to proceed to adjudicate the issue ex-parte u/r 24 of Income Tax Appellate Rules, 1963 [‘ITAT Rules’ hereinafter]. Heard the Ld. DR and subject to provisions of rule 18 (supra) perused material placed on records. Swa. Ma. Aam. Shivajirao Bapu Nagawade Medical Foundation Shrigonda ITA No. 1166/PUN/2023 ITAT-Pune Page 2 of 3 3. We note that; 3.1 In seeking regular registration, the assessee filed an application in Form No.10AB under clause (iii) of section 12(1)(ac) of the Act vide its application No. CIT EXEMPTION. PUNE/2023- 24/12AA/11319 dt. 31/03/2023. 3.2 By impugned order, said application of the assessee was rejected by the Ld. CIT(E) for threefold reasons (1) for not furnishing prerequisite, necessary & supportive documents as envisaged u/r 17A(2) of IT-Rules, 1962 so as to enable him to ascertain overall nature and genuinity of activities the appellant engaged into (2) for not furnishing any explanation against discrepancies emerged out of material placed on records, and (3) failure to comply with given notices etc. 3.3 Aggrieved by the impugned order, the assessee brought up this case challenging cancellation of provisional registration granted to it and denial for regular registration as an institution / fund u/s 12A(1)(ac)(iii) of the Act. 4. We note that, upon appellant’s failure to annexe required documents as contemplated u/r 17A(2) of IT-Rules, the Ld. CIT(E) by notice dt. 24/07/2023 accorded an opportunity to make good the deficiency. Adhering to principle of natural justice, a further notice dt. 30/08/2023 was also served thus called upon the appellant to clarify the discrepancies communicated, however this too remained unattended. This constrained the Ld. CIT(E) to reject the application for his failure to arrive at positive satisfaction about genuineness of activities of the assessee, which in our considered view remained flawless. Swa. Ma. Aam. Shivajirao Bapu Nagawade Medical Foundation Shrigonda ITA No. 1166/PUN/2023 ITAT-Pune Page 3 of 3 5. It has to be appreciated that, the purpose of provisions for registration of trust/fund 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 the registration for public charitable funds/trusts are given in order to ensure that through these funds/trust benefits flows to entire society, thus objective of Directive Principles of State Policy is achieved. These provisions of registration u/s 12A/12AB 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 with forgoing observations, we are of considered view that, the appellant deserves one more opportunity to make good the defects/shortcomings. In view thereof, without offering our comment on merits of the case, we set aside the impugned order and remit the matter back to the Ld. CIT(E) for de-nova consideration, preferably in three effective hearings to the appellant assessee. 6. In result, the appeal is ALLOWED FOR STATISTCIAL PURPOSE. U/r 34 of ITAT Rules, order pronounced in open court on this Wednesday 29 th day of November, 2023. -S/d- -S/d- PARTHA SARATHI CHOUDHURY G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER प ु णे / PUNE ; ददना ां क / Dated : 29 th day of November, 2023. आदेश की प्रतितलतप अग्रेतिि / Copy of the Order forwarded to : 1.अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The PCIT (E), Pune 4. The CIT, Concerned, Pune 5. DR, ITAT, Bench ‘B’, Pune 6. गार्डफ़ाइल / Guard File. Ashwini आदेशान ु सार / By Order वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्यायादधकरण, प ु णे / ITAT, Pune.