Shree Datta Bhakta Mandal, Nashik V. Commissioner of Income Tax (Exemption), Pune, Pune

ITA 220/PUN/2023

AI Insights

The case involves Shree Datta Bhakta Mandal, an appellant, contesting the decision of the Commissioner of Income Tax (Exemption), Pune, which rejected their application for registration under section 12AA of the Income Tax Act, 1961. The primary issue was whether the CIT(Exemption) was justified in rejecting the application ex-parte. The CIT(Exemption) had doubts about the existence of the temple and the trust, as no evidence was found in the balance sheet, and notices were reportedly not served. The Tribunal, after considering the submissions and the circumstances, decided to remand the case for a fresh examination, allowing the appellant to present further evidence.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132958 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-04-2023
• Assessment Year: misc
• Appeal Filed On: 21-02-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA

Judgement Text

आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.220/PUN/2023 Shree Datta Bhakta Mandal, 305/4610/161/12, Talathi Colony, Dindori Road, Near Meri, Nashik-422004 PAN : AACTD3742L .......अपीलार्थी / Appellant बनाम / V/s. Commissioner of Income Tax, (Exemption), Pune ......प्रत्यर्थी / Respondent Assessee by : Smt. Deepa Khare Revenue by : Shri Shishir Srivastava सुनवाई की तारीख / Date of Hearing : 12-04-2023 घोषणा की तारीख / Date of Pronouncement : 29-05-2023 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 29-11-2022 passed by the Commissioner of Income Tax (Exemption), Pune. 2. The assessee raised four grounds of appeal amongst which the only issue emanates for our consideration is as to whether the CIT(Exemption) justified in rejecting the application for registration u/s. 12AA of the Act ex-parte of the assessee. 2 ITA No.220/PUN/2023 3. The ld. AR, Smt. Deepa Khare submits that in response to the notice issued through ITBA portal on 25-08-2022, the assessee submitted a note on activities and expenditure statement. According to the CIT(Exemption) there was no such asset in the nature of temple is appearing in the balance sheet of the assessee, as the assessee trust came into existence on 10-07- 2019, held no substantive evidence in this regard filed by the assessee, resultantly, rejected the application for grant of registration. The ld. AR undertaken that the assessee is ready to produce all the relevant evidences in support of its claim and prayed to remand the matter to the file of CIT(Exemption). 4. The ld. DR, Shri Shishir Srivastava vehemently opposed in remanding the issue to the file of CIT(Exemption). He drew our attention to page 3 of the impugned order and argued that the very existence of the temple is in doubt, as the notice issued by the CIT(Exemption) returned and un-served by the postal authorities with a remark “Not on given address”. He submits that no leniency could be given to the assessee as the non-service of notice itself shows non-existence of the temple and no purpose will serve in remanding the issue to the file of CIT(Exemption). He vehemently prayed to dismiss the appeal filed by the assessee. 5. After hearing both the parties, we note that the assessee made compliances in response to the notice dated 25-08-2022 which is evident from para 3 of the impugned order which clearly establishes that furnishing of note on activities and also accounts of the assessee. Further, the CIT(Exemption) also formed an opinion that there was no immovable property in the status of temple is reflected in the balance sheet and he 3 ITA No.220/PUN/2023 very much doubted the very existence of the temple as well as the assessee trust. During the course of arguments, the ld. AR submitted the non- service of notice does not indicate the non-existence of the temple and given an opportunity the assessee will substantiate its claim with the supporting evidences for getting registration u/s. 12AA of the Act. On perusal of paras 3 and 3.1 of the impugned order which clearly shows that there was no material evidences brought on record by the assessee in support of its claim which indicates that there was no substantive evidence in support of getting registration u/s. 12AA of the Act. Therefore, we are of the opinion that the assessee shall be afforded an opportunity to prosecute its case and we deem it proper, in the interest of justice to remand the matter to the file of CIT(Exemption) for its fresh consideration. The assessee is liberty to file evidences, if any, in support of its claim. The CIT(Exemption) shall examine the same and pass order, in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal of assessee is allowed for statistical purposes. Order pronounced in the open court on 29 th May, 2023. Sd/- Sd/- (Dr. Dipak P. Ripote) (S.S. Viswanethra Ravi) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; दिनाांक / Dated : 29 th May, 2023. रदव 4 ITA No.220/PUN/2023 आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(Exemption), Pune. 4. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 5. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आिेशानुसार / BY ORDER, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune