Shri Pratishthan Turst , Nagpur V. CIT Exemption , Pune

ITA 419/NAG/2019

AI Insights

The case involves Shri Pratishthan Trust, 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 Trust, registered under the BPT Act, 1950, sought this registration to affirm its charitable status. The CIT (Exemption) initially rejected the application due to non-compliance with a notice and lack of credible evidence regarding the Trust's activities. The Tribunal found that the CIT (Exemption) had not adequately discussed the Trust's objects or activities in the initial decision and thus remanded the case for a thorough re-evaluation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133434 (ITAT-NAGPUR)
• Duration Of Justice: 3 year(s) 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 30-08-2023
• Assessment Year: misc
• Appeal Filed On: 29-12-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA

Judgement Text

आयकर अपीलीय अिधकरण Ɋायपीठ नागपुर मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH : : NAGPUR [VIRTUAL HEARING AT PUNE] BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.419/NAG/2019 िनधाᭅरण वषᭅ / Assessment Year : - Shri Pratishthan Trust, 59, Maithili Apartment, Congress Nagar, Dhantoli, Nagpur – 440012. PAN: AAFTS 7826 P Vs The CIT Exemption, Pune. Appellant / Assessee Respondent / Revenue Assessee by None Revenue by Shri Kailash Kanojiya – Sr.DR Date of hearing 31/08/2023 Date of pronouncement 12/09/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the Assessee against the order of ld.Commissioner of Income Tax(Exemption), Pune dated 31.10.2019 under section 12AA(1)(b)(ii) of the Income Tax Act, 1961. The assessee has raised the following grounds of appeal : “1. The Order passed by Commissioner of Income Tax Exemption Pune is erroneous illegal, invalid and bad in Law. ITA No.419/NAG/2019 Shri Pratishthan Trust [A] 2 2. On the facts and in the Circumstances of the case the learned CIT Exemption Pune has erred in refusing to grant the registration sought U/s 12AA(1) of the I.T. Act, 1961 by assessing the reasons incorrectly. 3. The Honourable CIT Exemption Pune erred in disposing off the application filed by the applicant Shree Pratishthan Trust in Form No. 10A for approval of the Trust U/s 12AA of I.T. Act 1961 on 27-04-2019 within six months from the date of application. 4. The learned CIT (Exemption) Pune has erred in not giving to the applicant trust proper opportunity of being heard before rejecting the application for registration U/s 12AA of the I.T. Act 1961. 5. The Honourable CIT Exemption Pune ought not to have rejected the application for registration U/s 12AA of the IT Act 1961. 6. Any other ground shall be prayed at the time of hearing.” 2. The appeal came up hearing on 31 st Aug, 2023. At the time of hearing, no one appeared on behalf of the assessee. Brief facts of the case : 3. The Assessee is a Trust registered under BPT Act, 1950 vide Registration Number E-807 0 dated 23.01.1981. The assessee trust applied for 12AA(1)(b)(ii) of the Income Tax Act, 1961. ITA No.419/NAG/2019 Shri Pratishthan Trust [A] 3 4. On perusal of the trust documents, the ld.CIT(E) held as under: “6. Considering the above facts, it is seen that the applicant has not complied to the notice dated 25-10-2019 to process the application for granting registration u/s 12AA of the Income Tax Act, 1961. Therefore, I am not satisfied about the charitable nature of objects as well as the genuineness of activities of the trust / institution and hence, the request for grant of registration u/s 12AA of the Income-tax Act. 1961 cannot be accepted.” Findings and Analysis : 5. We have heard ld.DR for the Revenue and perused the records. It is observed that ld.CIT(E) has rejected assessee’s application on the ground that no credible evidence regarding activities carried out by assessee has been filed, therefore, ld.CIT(E) stated that he was unable to draw any satisfactory conclusion about genuineness of the activities. However, the ld.CIT(E) has neither discussed about the objects of the Trust nor nature of activities carried out by the Assessee. In these facts and circumstances of the case, we set-aside the order of the ld.CIT(Exemption) to the ld.CIT(Exemption) for denovo adjudication. The ld.CIT(Exemption) shall discuss objects of the assessee, activities of the assessee trust and give categorical ITA No.419/NAG/2019 Shri Pratishthan Trust [A] 4 findings whether they are charitable or not! The ld.CIT(Exemption) shall provide opportunity to the assessee before passing the order. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose. 6. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 12 th Sept. 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 12 th September, 2023/ SGR* आदेश कᳱ ᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, नागपुर बᱶच, नागपुर/ DR, ITAT, Bench, Nagpur. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.