Sanay Foundation, Nashik V. Commissioner of Income-Tax (Exemption), Pune

ITA 835/PUN/2022

AI Insights

Sanay Foundation appealed against the decision of the Commissioner of Income Tax (Exemption), Pune, which had rejected their application for registration under section 80G(5)(iii) of the Income Tax Act. The foundation argued that they had provided all necessary documents and evidence of their charitable activities, which were not adequately considered by the CIT (Exemptions). The Tribunal examined the submissions and found that the CIT (Exemptions) had not properly reviewed the documents provided, leading to an incorrect rejection of the application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134345 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-02-2023
• Assessment Year: misc
• Appeal Filed On: 22-11-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G; 12A; 12AA

Judgement Text

आयकर अपीलीय अिधकरण “बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.835/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year :N.A. Sanay Foundation, 5, Vinay Society, Thatte Nagar, College Road, Opp.Kulkarni Baug, Nashik – 422005. PAN: AAWTS 7398 R V s The Commissioner of Income Tax(Exemption), Pune. Appellant/ Assessee Respondent /Revenue Assessee by Shri Pramod Shingte – AR Revenue by Shri Sardar Singh Meena – DR Date of hearing 02/02/2023 Date of pronouncement 07/02/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the Assessee i.e.Sanay Foundation is directed against the order of ld.Commissioner of Income Tax(Exemption), Pune under section 80G(5)(iii) of the Act dated 30.09.2022. The assessee raised the following grounds of appeal : “1. On the facts and in the circumstances of the case and in law, the Learned Commissioner of Income Tax (Exemption) Pune (CIT (Exemp) is wrong in rejecting the application dated 31/03/2022 for approval under clause (iv) of first proviso to subsection (5) of 80G irrespective of all documents including supporting and proof of activities carried out were submitted within due date to prove ITA No.835/PUN/2022 Sanay Foundation [A] 2 eligibility. 2. Hon’able Ld. CIT(Exemp) is wrong in rejecting the application for approval under section 80G irrespective of the fact that the certificate u/s 12A(i)(ac)(iii) is granted for A.Y. 2022 23 to 2026-27 and provisional approval of under section 80G was granted from 01/10/2021 to A.Y. 2024-25. 3. Hon’able CIT (Exemp) committed a mistake of asking the trustees to appear personally on 23/09/2022 within the short period notice of 6 days even though all the documents as required were submitted online and there by rejecting the application for approval for non-attending hearing personally. 4. The appellant craves leave to add, amend, alter, or withdraw any aforesaid grounds of appeal.” 2. The ld.CIT(E) has rejected assessee’s application for registration under section 80G. Aggrieved by the same, the assessee filed appeal before this Tribunal. 3. The ld.Authorised Representative(ld.AR) for the assessee submitted a paper book, the ld.AR submitted that assessee is duly registered under section 12AA of the Act. The activities of the assessee are charitable in nature. The assessee had submitted all the relevant documents during the proceedings before the ld.CIT(E). However, inspite of submitting the document, the ld.CIT(E) has mentioned that assessee has not submitted the credible evidence. ITA No.835/PUN/2022 Sanay Foundation [A] 3 DR Submissions : 4. The ld.Departmental Representative(ld.DR) for the Revenue relied on the order of the ld.CIT(E). Findings & Discussion : 5. We have heard both the parties and perused the records. The ld.CIT(E) has rejected the application of the assessee only on the ground that assessee failed to submit the details called for. Before us in the paper book, assessee submitted the documents to establish activities carried out by the assessee. The assessee also submitted a note on the activities carried out. The assessee has also submitted a copy of return of income for the A.Y. 2019-20 which was filed on 18.11.2019 & for A.Y.2021-22 on 08.01.2022. It is observed that assessee has applied in Form No.10AB for registration under section 80G on 31.03.2022. Thus, at the time of the scrutiny of the application, the ld.CIT(E) had access to the returns of income filed by the assessee. However, the ld.CIT(E) has not bothered to study information available in the Returns of income and merely rejected the application stating that assessee failed to submit the relevant details. However, the assessee has filed in the paper book the print out titled as “e-Proceedings Response Acknowledgment” which demonstrates the replies submitted by the assessee. Thus, according to the e-Proceedings Response Acknowledgment, assessee had ITA No.835/PUN/2022 Sanay Foundation [A] 4 submitted reply containing the details like financials, note on activities, bank statement, list of donors etc. The ld.CIT(E) has not commented on these documents submitted by the assessee. Before us, assessee filed copies of the documents showing nature of activities. According to these document, the assessee is a Trust working in the field of health education, tribal development since 2008. The assessee has adopted a village. It had carried activities like providing borewell, hand pumps for safe drinking water to the said village. It has constructed more than 120 toilets, it had carried out medical camps, it had distributed saplings for plantation, it had distributed solar cookers, solar dryers. It is running a library in 4 hamlets for tribal students. On perusal of these activities, we are of the opinion that these activities are charitable in nature and it is a fact that assessee has a valid 12A(1) registration issued by ld.CIT(E). The 12A registration certificate is issued only after verification of the objects and genuineness of the assessee. Since the ld.CIT(E) has issued 12A(1) registration, it means the objects of the Trust are charitable in nature and activities are genuine. The ld.CIT(E) has denied registration under section 80G(5) of the Act only on the ground that assessee failed to file details called for. However, before us, the assessee has filed copy of e-Proceedings Response Acknowledgement” which clearly shows that assessee had filed reply ITA No.835/PUN/2022 Sanay Foundation [A] 5 to notices issued by ld.CIT(E). Assessee had filed electronically copy of Trust Deed, copy of financials, note on activities etc. However, ld.CIT(E) has not considered these documents & rejected the application of assessee by cryptic order. The ld.CIT(E) has not stated that assessee has violated any conditions mentioned in the section 80G(5), of the Act. 6. On these facts and circumstances of the case, for the elaborate reasons discussed above, we hold that assessee is eligible for registration under section 80G(5)(iii) of the Act. Accordingly, grounds raised by the assessee are allowed. 7. In the result, appeal of the assessee is allowed. Order pronounced in the open Court on 7 th February, 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 7 th Feb, 2023/ SGR* आदेशकᳱᮧितिलिपअᮕेिषत / 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, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.