Shri Narbadeshwar Devasthan Trust, Jalgaon V. Commissioner of Income Tax (Exemption), Pune, Pune

ITA 668/PUN/2023

AI Insights

The case involves the Shri Narbadeshwar Devasthan Trust, which appealed against the decision of the CIT (Exemption), Pune, denying them registration under section 12AB of the Income Tax Act, 1961. The Trust had initially filed an application for registration, which led to a series of notices from the CIT (Exemption) requesting additional information to verify the genuineness of the Trust's activities. The CIT (Exemption) ultimately denied the registration and cancelled the provisional registration due to alleged non-compliance with the information requests. The Tribunal found that the Trust was not given a reasonable opportunity to respond to the final notice before the decision was made, leading to the setting aside of the CIT's order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137165 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 18-07-2023
• Assessment Year: misc
• Appeal Filed On: 28-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S. S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.668/PUN/2023 Shri Narbadeshwar Devasthan Trust, Ajanta Road, New Market Yard, MIDC, Jalgaon- 425003. PAN : AABTS1944A Vs. CIT (Exemption), Pune. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee trust directed against the order of ld. Commissioner of Income Tax (Exemption), Pune [‘the CIT (Exemption)’] dated 30.03.2023 denying the grant of registration u/s 12AB of the Income Tax Act, 1961 (‘the Act’). 2. Briefly, the facts of the case are that the appellant had filed an application in Form No.10AB under clause (iii) of section 12A(1)(ac) of the Act on 24.09.2022. On receipt of the said Assessee by : Smt. Deepa Khare Revenue by : Shri Keyur Patel Date of hearing : 19.07.2023 Date of pronouncement : 31.07.2023 ITA No.668/PUN/2023 2 application, the ld. CIT (Exemption) issued a notice through ITBA Portal on 23.12.2022 requiring the appellant trust to upload certain information, such as date of commencement of activity, date of expiry of provisional registration, details of any other Law applicable for achievement of objectives and the proof of compliance of said Law, proof of identity of main trustees/ directors, year-wise list of donations received, list of donors, note on activities along with supporting credible evidence, details of business undertakings etc in order to satisfy himself as the genuineness of activities of the appellant trust and compliance with requirements of any other law for the time being in force. On verification of the details submitted by the assessee and on noticing certain alleged discrepancy, another notice dated 22.03.2023 was issued calling for certain other information. According to the ld. CIT (Exemption), the appellant trust had failed to comply with the said notice. In the circumstances, the ld. CIT (Exemption) drew adverse inference and denied the grant of registration and also cancelled the provisional registration granted on 24.09.2021 u/s 12AB r.w.s. section 12A(1)(ac)(vi) of the Act. ITA No.668/PUN/2023 3 3. Being aggrieved by the order of the ld. CIT (Exemption), the appellant trust is in appeal before us in the present appeal. 4. The ld. Counsel, Smt. Deepa Khare submits that the appellant had complied with the hearing notice dated 22.03.2023 by filing the requisite information by Acknowledgement No.952295371100223, also filed the copy of Acknowledgement Letter, copy of the submissions submitted through e-proceedings. She submits that the ld. CIT (Exemption) without considering the information filed by the appellant trust drew adverse inference and, therefore, the impugned order be set-aside. 5. On the other hand, ld. CIT-DR placed reliance on the order of the ld. CIT (Exemption). 6. We heard the rival submissions and perused the material on record. We have carefully gone through the impugned order and find that the ld. CIT (Exemption) issued notice through ITBA Portal on 22.03.2023 calling upon the appellant to file certain other details/information as to the genuineness of the activities undertaken by the assessee trust. However, the impugned order was passed on 30.03.2023. After going through the material on record, we are convinced that the appellant trust was not granted reasonable ITA No.668/PUN/2023 4 opportunity to file the details as called for by the CIT (Exemption). In the circumstances, in order to meet the interests of justice, the impugned order is set-aside with a direction to afford a fresh opportunity of hearing to the assessee before cancellation of the registration u/s 12A(1)(ac)(vi) of the Act. Accordingly, the grounds of appeal filed by the assessee stand partly allowed. 7. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 31 st day of July, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 31 st July, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT, Exemption, Pune. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.