Teer Foundation, Nashik V. Commissioner of Income-Tax -Exemption, Pune

ITA 23/PUN/2023

AI Insights

The case involves Teer Foundation, which appealed against the decision of the Commissioner of Income Tax (Exemption), Pune, who had refused to grant registration under section 12AA of the Income-tax Act, 1961. The refusal was based on the lack of sufficient evidence to demonstrate that the activities of the foundation were in line with its stated objectives. The ITAT found that the Commissioner had not provided a sufficient opportunity for the appellant to comply with the requirements or to contest the rejection, which constituted a violation of the principles of natural justice. Consequently, the ITAT remanded the case for a re-evaluation, emphasizing the need for a fair hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136183 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-04-2023
• Assessment Year: misc
• Appeal Filed On: 01-01-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Tangible material
• Section: 12AA

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “ ” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “B” BENCH, PUNE BEFORE HON’BLE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपीलसं. / ITA No. 23/PUN/2023 Teer Foundation D3-, Vitthal Garden RH, ITI-Ambad Link Rd., Trimurti Chowk, Nashik-422008 PAN:AAICT6392B . . . . . . . अपीलाथी / Appellant बनाम / V/s. Commissioner of Income Tax Officer Exemption, Pune. . . . . . . .प्रत्यथी / Respondent द्वारा / Appearances Assessee by : None Revenue by : Shri Sardar Singh Meena सुनवाई की तारीख / Date of conclusive Hearing : 13/04/2023 घोषणा की तारीख / Date of Pronouncement : 13/04/2023 आदेश / ORDER PER G. D. PADMAHSHALI, AM; Against the order of refusal to grant 12AA registration u/s 12AA(1)(b)(ii) of the Income-tax Act, 1961 [for short “the Act”] passed by the Commissioner of Income Tax (Exemption), Pune [for short “CIT(E)”] dt. 27/11/2022, the appellant assessee is in appeal with the grounds of appeal laid in form No. 36 Teer Foundation ITA No.23/PUN/2023 PAN: AAICT6392B ITAT-Pune Page 2 of 4 2. We have heard the rival contentions of both the parties; and subject to the provisions of rule 18 of “ITAT Rules”, perused the material placed on record where the brief facts emanating are such that; the appellant has e-filed an application in Form No 10AB on 05/05/2022 seeking grant of registration u/s 12AA under the category of charitable trust / institution. Whereupon the Ld. CIT(E) in-order to verify the objects, activities and to ascertain the fulfilment of conditions for granting registration u/s 12AA of the Act, was put the appellant to notice dt. 02/09/2022 requesting certain additional information, which was duly replied through online submission dt. 19/09/2022. Perusing the submission, the Ld. CIT(E) sought further detailed note on the activities alongwith credible evidence, which however remained non complied. Thus Ld. CIT(E) without further notice, found rejected the application iterating the absence tangible material to vouch engagement of activities as to whether they are in line with the object of the trust / institution. Teer Foundation ITA No.23/PUN/2023 PAN: AAICT6392B ITAT-Pune Page 3 of 4 3. The challenge of the appellant is considered and after vouching the facts of the case, it transpired that, the preliminary submission of the appellant did not productively prove its eligibility and claim for grant of approval for 12AA, as a consequence the Ld. CIT(E) without further opportunity to the appellant rejected the application in violation of principle of natural justice as commanded by proviso to section 12AA(1)(b)(ii) of the Act, thus action of the Ld. CIT(E) suffered from sufficiency of reasonable opportunity to the appellant to refute the rejection vis-à-vis to comply with the requirements sought. It shall be worthy to underlined that the opportunity of being heard should be real, reasonable and effective and same should not be empty formalities, it should not be a paper opportunity, the doctrine of natural justice is a facet of fair play in action and no person shall be saddled with a liability without being heard. 4. Thus for the aforestated reason, we without commenting on the merits of the case, deem fit to Teer Foundation ITA No.23/PUN/2023 PAN: AAICT6392B ITAT-Pune Page 4 of 4 remand the matter back to the file of Ld. CIT(E) for according reasonable & effective opportunity to refute the rejection vis-à-vis to comply with the requirements of credible documentary evidence in support of its claim of its engagement into activities in line with the object with or for which it is established. 5. Resultantly, the appeal of the appellant is ALLOWED FOR STATISTICAL PURPOSE in above terms. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Thursday 13 th day of April, 2023. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; दिन ांक / Dated : 13 th day of April, 2023. आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT, Pune 4. The Pr. CIT(E), Pune 5. DR, ITAT, Pune “B” Bench, Pune 6. ग र्डफ़ इल / Guard File. आिेश नुस र / By Order, वररष्ठ दनजी सदिव / Sr. Private Secretary आयकरअपीलीय न्य य दिकरण, पुणे / ITAT, Pune.