Shri Rural Education Trust, Pune V. CIT, Exemption, Pune, Pune

ITA 1266/PUN/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 3615 (ITAT-PUNE)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 27-02-2024
• Assessment Year: misc
• Appeal Filed On: 27-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Corroborative evidences
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE „B‟ BENCHES :: PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER & SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA Nos.1265 & 1266/PUN/2023 Shri Rural Education Trust, B-903, Mountvertz Biaritz, S.No.137/1/1, Pashan Baner Link Road, Bawdhan, Bavdhan, Pune-411021. PAN: AAKTS 1924 M vs CIT (Exemption), Pune. Appellant Respondent Assessee by : Shri Sachin Kumar, Adv. Revenue by : Shri Nitin Waghmode, CIT-DR Date of hearing : 28/02/2024 Date of pronouncement : 28/02/2024 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 27.09.2023 as per the grounds of appeals on record. 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. At the time of hearing, ld.AR for the assessee submitted that one ITA Nos.1265 & 1266/PUN/2023 Shri Rural Education Trust 2 final opportunity may be granted to represent their case/s substantively on merits before the ld.CIT(E) and requested that the matter may be remanded back to the file of ld.CIT(E). Ld.AR also submitted that they shall abide by all the hearing notices of the Department and shall furnish all the relevant documents/evidences as and when called for by the office of ld.CIT(E). 4. We have perused both the orders of the ld.CIT(E) in the 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 trust 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 with regard to the application for registration u/sec. 12AA of the Act. That, in respect of the application for exemption u/sec. 80G of the Act, the Department in order 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 ITA Nos.1265 & 1266/PUN/2023 Shri Rural Education Trust 3 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 dated 11/09/2023 and it was specifically asked that the assessee should provide relevant reply and supporting evidences with regard to the said discrepancies. The assessee had complied with the notice by furnishing its reply on 21/09/2023. Since the assessee had not furnished further clarification, the Department came to the conclusion that the assessee does not have anything more to say on the issue and accordingly, the respective applications were rejected. 5. 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 ITA Nos.1265 & 1266/PUN/2023 Shri Rural Education Trust 4 furtherance to the Directive Principles of State Policy are achieved. These provisions for the trust registration u/sec. 12AA 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 represent their cases on merits. 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-trust. In view thereof, we set aside the orders 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 de novo as per law complying with the principles of natural justice. Grounds of both the appeals of the assessee stands allowed for statistical purposes. 6. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in open Court on 28 th February, 2024. Sd/- Sd/- (INTURI RAMA RAO) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 28 th February, 2024 ITA Nos.1265 & 1266/PUN/2023 Shri Rural Education Trust 5 vr/- Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT(E), Pune. 4. The DR, ITAT, “B” Bench Pune. 5. Guard File. By Order // TRUE COPY // Senior Private Secretary ITAT, Pune.