Janeev Charitable Foundation, Kolhapur V. Commissioner Of Income Tax, Exemption, Pune , Pune

ITA 1311/PUN/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 3641 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 26-02-2024
• Assessment Year: misc
• Appeal Filed On: 30-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KEYUR PATEL LD.
• Assessee Lawyers: SARANG GUDHATE LD.
• Keywords: Charitable institution; Audi alteram partem
• Section: 80G; 12A

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे ‘ए’ न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE ‘A’ BENCH, PUNE BEFORE HON’BLE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपीलस ं . / ITA No. 1311 & 1312/PUN/2023 Janeev Charitable Foundation Manorama, Plot No. 25, Behind Raigad Colony, Panchgaon Road, Kolhapur-416012. PAN:AABTJ7868A . . . . . . . अपीलार्थी / Appellant बनाम / V/s. Commissioner of Income Tax Exemption, Pune. . . . . . . .प्रत्यर्थी / Respondent द्वारा / Appearances Assessee by : Mr Sarang Gudhate [‘Ld. AR’] Revenue by : Mr Keyur Patel [‘Ld. DR’] स ु नवाई की तारीख / Date of conclusive Hearing : 27/02/2024 घोषणा की तारीख / Date of Pronouncement : 27/02/2024 आदेश / ORDER PER G. D. PADMAHSHALI, AM; The present twin appeals of the assessee are assailed against separate orders of Ld. Commissioner of Income Tax (Exemption), Pune [‘CIT(E)’] dt. 25/08/2023 & 18/07/2023 passed u/s 12AB(4) & 80G(5) of the Income-tax Act, 1961 [‘the Act’] respectively. 2. After vouching sufficiency of reasons beyond 38 & 76 days delay in instituting these twin appeals respectively, we deem it fit to condone the delay in the light of ‘Collector, Land Acquisition, Anantnag and Anr. Vs Ms Katiji and Others’ reported at 167 ITR 5 (SC) and proceeded for adjudicate the issues in terms of grounds of appeal. Janeev Charitable Foundation Vs CIT(E) ITA No.1311 & 1312/PUN/2023 ITAT-Pune Page 2 of 4 3. Briefly stated facts borne out of these case records are; 3.1 The appellant assessee was accorded a provisional registration u/s 12AB r.w.s. 12A(1)(ac)(vi) & 80G of the Act, pursuant to which it has e-filed its application in Form No 10AB on 10/02/2023 seeking grant of regular registration u/s 12A(1)(ac)(iii) under the category of charitable trust / institution and further an application in Form 10AB on even date for recognition under clause (ii) of first proviso to section 80G(5) of the Act. 3.2 By impugned order passed u/s 12AB(4) of the Act, the Ld. CIT(E) rejected aforestated application and denied to grant 12A registration on 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 therewith etc. and thus cancelled the provisions granted to it on 11/08/2022 u/s 12AB r.w.s. 12A(ac)(vi) of the Act. 3.3 During the pendency of aforestated application, in the absence of certificate of regular 12AB registration, the Ld. CIT(E) by a separate order dt. 18/07/2023 in limine rejected application seeking 80G(5) registration. 4. Aggrieved by the aforestated rejections and cancellation of provisional registrations granted to it, the appellant assessee has set-up these twin appeals against respective impugned orders alleging the action of Ld. CIT(E) as violative of principle of audi alteram partem. Janeev Charitable Foundation Vs CIT(E) ITA No.1311 & 1312/PUN/2023 ITAT-Pune Page 3 of 4 5. We have heard both rival parties; and subject to the provisions of rule 18 of ITAT Rules, perused material placed on record which suggests that, the preliminary submission of the appellant did fail to give plausible response to various queries raised by the registering authority and also failed to substantiate its activities with cogent evidences so as enable him to draw a reasonable conclusion about the genuineness of the activities of the appellant. As a consequence, the Ld. CIT(E) rejected these applications after observing principle of natural justice as commanded by sub-clause (B) of section 12AB(1)(b)(ii) and by clause (ii)(b)(B) of 2 nd proviso to 80G(5) of the Act r.w. proviso to rule 11AA(5) of the Income Tax Rules, 1962. This in our considered view remained flawless. 6. It is to be appreciated that, the purpose of registration of trust/fund u/s 12A/12AB and granting 80G recognition derives their spirit from Directive Principles of State Policy enshrined in our Constitution. 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, thereby objective of Directive Principles of State Policy is achieved. These provisions of welfare legislation meant to enhance socio economic welfare of the society. Therefore, considering the compelling & ousting circumstance owning to which the appellant did fail to clarify the defects/discrepancies & explain, we in larger interest of justice are of considered view that, the appellant deserves one more opportunity to make good the defects/shortcomings. Janeev Charitable Foundation Vs CIT(E) ITA No.1311 & 1312/PUN/2023 ITAT-Pune Page 4 of 4 7. In view thereof, without offering our comment on merits of the case, we set aside both the impugned orders and remit the matter back to the Ld. CIT(E) for de-nova consideration, preferably in three effective hearings to the appellant assessee in each case separately. 8. In result, both these appeals of the appellant are ALLOWED FOR STATISTICAL PURPOSE. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Tuesday, 27 th day of February, 2024. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER प ु णे / PUNE ; ददना ां क / Dated : 27th day of February, 2024. आदेश की प्रतितलतप अग्रेतिि / Copy of the Order forwarded to : 1.अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The Pr. CIT, Pune 4. The Pr. CIT(E), Pune 5. DR, ITAT, ‚A‛ Bench, Pune 6. गार्डफ़ाइल / Guard File. आदेशान ु सार / By Order, वररष्ठ दनजी सदिव / Sr. Private Secretary आयकरअपीलीय न्यायादधकरण, प ु णे / ITAT, Pune.