M/s Prayas Bahuddeshiya Samajik Sanstha , Nagpur V. CIT Exemptions , Pune

ITA 7/NAG/2020

AI Insights

The case involves M/s. Prayas Bahudeshiya Samajik Sanstha, which appealed against the decision of the Commissioner of Income Tax (Exemption), Pune, who had rejected their application for registration under section 12AA(1)(b)(ii) of the Income Tax Act, 1961. The CIT(E) had rejected the application on the grounds that the assessee did not furnish complete details as required on the ITBA portal and did not comply with a notice dated 23-05-2019. The Tribunal found that the CIT(E) had not adequately considered the partial details submitted by the assessee and had not discussed these in the order. The Tribunal noted that the CIT(E) failed to verify the compliance of the assessee with the requirements for registration, despite having the means to do so, given that the assessee was already registered under the Bombay Public Trust Act since 2014.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133435 (ITAT-NAGPUR)
• Duration Of Justice: 3 year(s) 8 month(s) 6 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: 05-01-2020
• 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.7/NAG/2020 िनधाᭅरण वषᭅ / Assessment Year : - M/s.Prayas Bahudeshiya Samajik Sanstha, 246/247, Trikoni Maidan, Hanuman Nagar, Medical Road, Nagpur – 440009. PAN: AAFAP 2641 G Vs The CIT Exemption, Pune. Appellant / Assessee Respondent / Revenue Assessee by Shri Kapil Hirani – CA 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 rejecting the assessee’s application for registration under section 12AA(1)(b)(ii) of the Income Tax Act, 1961 dated 29.11.2019. The assessee has raised the following grounds of appeal : “1. Whether on the facts and circumstances of the case the CIT(Exemptions), Pune was justified in rejecting the application of ITA No.7/NAG/2020 M/s.Prayas Bahuddeshiya Samajik Sanstha [A] 2 registration of trust u/s 12AA(1)(b)(ii) of the Income Tax ct, 1961. 2. Whether the rejection order passed by the CIT Exemptions, Pune on the basis of perverse fact finding is illegal and bad in law. 3. The Appellant craves leave to add or alter any other ground that may be taken at the time of hearing.” Submission of ld.AR : 2. The ld.AR vehemently submitted that order of the ld.CIT(E) is bad in law as ld.CIT(E) has not considered the submission filed by the assessee. The ld.CIT(E) has not discussed the objects of the Trust and rejected the application on frivolous grounds. The ld.AR submitted that assessee has uploaded all the details on the website. However, the ld.CIT(E) has not considered the submission of the assessee. Submission of ld.DR : 3. The ld.DR for the Revenue relied on the order of ld.CIT(E). Findings & Analysis : 4. The ld.CIT(E) in para 4 has stated as under : “4. Considering the above facts, it is seen that the applicant has not furnished the requisite details on the ITBA portal fully or complied to the notice dated 23-05-2019 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.” ITA No.7/NAG/2020 M/s.Prayas Bahuddeshiya Samajik Sanstha [A] 3 5. Thus, the ld.CIT(E) has rejected the application of the assessee only on the ground that details were not furnished. However, in para 2 of the order, the ld.CIT(E) has stated that assessee had submitted partial details. Thus, it is a fact that assessee had submitted some details, however, the ld.CIT(E) has not discussed what all the details were submitted by the assessee. Without discussing the details filed by assessee, ld.CIT(E) merely rejected the application of the assessee. At the time of registration, ld.CIT(E) has to give a categorical finding whether the objects, activities of the assessee are charitable as per section 2(15) of the Act or not! In this case, the assessee is registered under Bombay Public Trust Act on 15.12.2014. Thus, assessee is in existence since 2014. The ld.CIT(E) is the head for exemption unit. It means, he could have easily verified whether assessee filed Return of Income or not! However, without verifying anything, ld.CIT(E) has rejected the application of the assessee. 6. In these facts and circumstances of the case, we set-aside the order to ld.CIT(E) for denovo adjudication. The ld.CIT(E) shall provide opportunity to the assessee. ITA No.7/NAG/2020 M/s.Prayas Bahuddeshiya Samajik Sanstha [A] 4 7. 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.