Shree Dattakrupa foundation, Ahmednagar V. Commissioner Of Incom Tax Exemption, pune, Pune

ITA 326/PUN/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6184 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-06-2024
• Assessment Year: misc
• Appeal Filed On: 18-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Corroborative evidences; Set aside
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.326 & 327/PUN/2024 Shree Dattakrupa Foundation Kinetic Chowk, Pune Road, Ahmednagar - - 414001 Vs. CIT (Exemption) Pune PAN: AAPTS1805G (Appellant) (Respondent) Assessee by : Shri Prasad S Bhandari (through virtual) Department by : Shri Pankaj Kumar Date of hearing : 20-06-2024 Date of pronouncement : 28-06-2024 O R D E R PER R.K. PANDA, VP : The above two appeals filed by the assessee relate to the separate orders dated 29.03.2023 of CIT (Exemption), Pune, relating to denial of registration u/s 12AA and 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’), respectively. For the sake of convenience, both these appeals were heard together and are being disposed off by this common order. 2. There is a delay of 268 days in filing of this appeal before the Tribunal, for which the assessee has filed a condonation application along with an affidavit explaining the reasons for such delay. After considering the contents of the condonation application filed along with affidavit and after hearing the Ld. DR, the 2 ITA Nos.326 & 327/PUN/2024 delay in filing of the appeal is condoned and the appeal is admitted for adjudication. 3. Facts of the case, in brief, are that the assessee filed an application in Form No.10AB under clause (iii) of section 12A(1)(ac) of the Act on 29.08.2022. With a view to verify the genuineness of the activities of the assessee and compliance to requirements of any other law for the time being in force by the trust / institution as are material for the purpose of achieving its objects, a notice was issued through ITBA portal by the CIT(E) requesting the assessee to upload certain information / clarification. However, despite number of opportunities granted, the assessee did not file any reply to the said notice. The Ld. CIT(Exemption) observed from the documents submitted along with the application that there were various discrepancies. He also noted that the assessee seems to have engaged in running of educational institutions but no supporting documents were submitted. The assessee has not furnished any credible supporting evidences in respect of activities claimed to have been carried out. There are also no details of free education given to the needy and poor students. Since the assessee has shown to have spent Rs.1,76,44,131/- and Rs.1,42,09,622/- towards the charitable activities during the assessment years 2022-23 and 2021-22, respectively, which according to the Ld. CIT(Exemption) are not in commensuration with the schedules of the financial statements and bank statement, therefore, Ld. CIT(Exemption) rejected the claim of registration and provisional registration granted on 06.04.2022 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the Act was cancelled by observing as under: 3 ITA Nos.326 & 327/PUN/2024 “4. The assessee was specifically requested vide the initial notice as well as vide the show-cause notice to furnish supporting credible evidence in respect of activities claimed to have been carried out. However, the assessee has not furnished any cogent evidence in this regard. The information was called for under the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961. The assessee failed to comply with the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961 and hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and has left no alternative but to reject the application. 5. In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 06/04/2022 under section 12AB read with section 12A(1)(ac)(vi) of the Income Tax Act, 1961 is hereby cancelled.” 4. Since the registration u/s 12AB of the Act was cancelled, the CIT(Exemption) rejected the provisional approval granted u/s 80G(5)(vi) of the Act. 5. Aggrieved with such order of CIT(Exemption), the assessee is in appeal before the Tribunal by raising the following grounds: ITA No.326/PUN/2024 1. On the facts and in the prevailing circumstances of the case and in law, the learned CIT(Exemption) – Pune erred in rejecting the application of the assessee for seeking approval under section 12AB without allowing sufficient time to submit the reply. Hence, the impugned order may please be set aside and the provisional registration may please be restored till the final approval. 2. On the facts and in the prevailing circumstances of the case and in law, the learned CIT(Exemption) – Pune erred in rejecting the application of the assessee without appreciating the submission made by the assessee. Hence, the approval under section 12A may please be granted. ITA No.327/PUN/2024 1. On the facts and in the prevailing circumstances of the case and in law, the learned CIT(Exemption) – Pune erred in rejecting the application of the assessee for seeking approval under section 80G without allowing sufficient time to submit the reply. Hence, the impugned order may please be set aside and the provisional registration may please be restored till the final approval. 4 ITA Nos.326 & 327/PUN/2024 2. On the facts and in the prevailing circumstances of the case and in law, the learned CIT(Exemption) – Pune erred in rejecting the application of the assessee without appreciating the submission made by the assessee. Hence, the approval under section 80G may please be granted. 6. The Ld. Counsel for the assessee at the outset submitted that the CIT(Exemption) without allowing sufficient opportunity to submit the details cancelled the provisional registration granted. He submitted that in the interest of justice, the assessee should be given an opportunity to file the requisite details to the satisfaction of the CIT(Exemption). He accordingly requested that the matter may be set aside to the file of CIT(E) for fresh adjudication of the issue. 7. The Ld. DR on the other hand submitted that despite number of opportunities granted, the assessee did not furnish the requisite details for which the CIT(Exemption) was justified in cancelling the provisional registration granted to the assessee earlier. 8. We have heard the rival arguments made by both the sides, perused the order of the CIT(Exemption) and the paper book filed on behalf of the assessee. It is an admitted fact that due to non submission of the details as required by the CIT(Exemption), he passed the order rejecting the provisional registration granted earlier to the assessee. It is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to file all the relevant details / documents as called for by the CIT(Exemption), Pune to substantiate the genuineness of the activities carried out by the assessee. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore 5 ITA Nos.326 & 327/PUN/2024 the issue to the file of the CIT(Exemption) with a direction to grant one last opportunity to the assessee to substantiate its case by filing the requisite details regarding the genuineness of the activities of the assessee. The assessee is hereby directed to submit the details as called for by the CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the CIT(Exemption) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 9. Since the order rejecting the provisional cancellation of registration is restored to the file of the CIT(Exemption), therefore, the issue relating to the cancellation of provisional approval granted on 06.04.2022 u/s 80G(5)(vi) of the Act is also restored to the file of the CIT(Exemption) for fresh adjudication. 10. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open Court on 28 th June, 2024. Sd/- Sd/- (ASHTA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT प ु णे Pune; दिन ांक Dated : 28 th June, 2024 GCVSR 6 ITA Nos.326 & 327/PUN/2024 आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. DR, ITAT, ‘A’ Bench, Pune गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune S.No. Details Date Initials Designation 1 Draft dictated on 25.06.2024 Sr. PS/PS 2 Draft placed before author 27.06.2024 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order