Azad Panchi Group Miraj, Sangli V. Commissioner of Income Tax, Exemption, Pune, Pune

ITA 932/PUN/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 6401 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 17-10-2023
• Assessment Year: misc
• Appeal Filed On: 21-08-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Set aside
• Section: 80G

Judgement Text

॥आयकर अपीलीय न्यायाधिकरण, पुणे “ए” न्यायपीठ, पुणे में॥ ITAT-Pune Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “A” BENCH, PUNE BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.932/PUN/2023 Azad Panchi Group Miraj, Nandi Niwas Near Swami Samarth Mandir, Vishrambag, Sangli - 416415 PAN: AADTA5531H .......अपीलाथी / Appellant बनाम / V/s The Commissioner of Income Tax (Exemption), Pune ....... प्रत्यथी / Respondent द्वारा/ Appearances Assessee by : Adjournment Application rejected Revenue by : Shri Mirtyunjoy Barnwal सुनवाई की तारीख / Date of conclusive Hearing : 18/10/2023 घोषणा की तारीख / Date of Pronouncement : 18/10/2023 आदेश/ ORDER PER G. D.PADMAHSHALI; By this appeal the assessee challenged the order of rejection passed u/s 12A(1)(ac)(vi)of the Act by the Commissioner of Income Tax (Exemption), Pune [for short ‘CIT(E)’] vide DIN & order No. ITBA/EXM/F/EXM45/2023-24/1054042394(1) dt. 29/06/2023. 2. The assessee filed an application for adjournment, however after hearing to the Ld. DR the bench deem fit to reject the application and proceed to adjudicate the issue ex-parte in the absence of the appellant u/r 24 of ITAT-Rules, 1963. Azad Panchi Group Miraj ITA No. 932/PUN/2023 ITAT-Pune Page 2 of 3 3. At the We note that, the appellant vide Form No. 10AB dt.30/12/2022 made an application to the respondent under clause (iii) of section 12A(1)(ac) of the Act thereby seeking regular/final registration u/s 12AB of the Act. The appellants failure to annexe required documents as contemplated u/r 17A(2)(k) of IT-Rules, the Ld. CIT(E) by notice dt. 15/03/2023 accorded an opportunity to make good the deficiency of the application, the assessee supplied requisite documents. After considering the submission of the appellant, certain discrepancies were noticed by the Ld. CIT(A) and by a notice dt. 20/06/2023 the appellant was again called upon to cure the defects and clarify the discrepancies; however this notice was remain unattended for a good reason of non-receipt of notice by the appellant directly. 4. In the absence of compliance, the Ld. CIT(E) rejected to grant regular registration and provisional registration granted to the appellant u/s 12AB r.w.s. 12A(1)(ac)(vi) of the Act is cancelled as he could not draw any satisfactory conclusion about the genuineness of activities of the appellant and satisfaction over compliance of requirements of any other law for the time being in force by the trust / institutions as are material for the purpose of achieving its objects. 5. We have heard the Ld. DR Mr Barnwal; and subject to the provisions of rule 18 of ‘ITAT Rules’, perused the material placed on record, case laws relied upon by both the parties to present dispute. Azad Panchi Group Miraj ITA No. 932/PUN/2023 ITAT-Pune Page 3 of 3 6. It is to be appreciated that, the very purpose of the provisions for registration of trust u/s 12A/12AB and granting of recognition u/s 80G of the Act derives their spirit from Directive Principles of State Policy enshrined in the Constitution of India. The Govt. of India makes every endeavour to provide welfare to one and all. In view thereof registrations to charitable trusts are given in order to ensure certain benefits flows to entire society therefrom. Thus the Directive Principles of State Policy are achieved. These provisions of registration u/s 12A/12AB and u/s 80G of the Act enhance socio economic welfare of the society. Furthermore, Income Tax laws are welfare legislations and not penal in nature, therefore, in larger interest of justice with forgoing observations, we are of the considered view that, the appellant deserves one more clear opportunity to make good the defects/shortcomings. In view thereof, without offering our comment on merits of the case, we set aside the impugned order and remit the matter back to the Ld. CIT(E) for de- nova consideration, preferably in two effective hearings. 7. In result, the appeal is ALLOWED FOR STATISTCIAL PURPOSES. U/r 34 of ITAT Rules, order pronounced in open court on this Wednesday 18 th day of October, 2023. -S/d- -S/d- SATBEER SINGH GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ PUNE ; दिन ांक / Dated : 18 th day of October, 2023. आदेशकीप्रधिधलधपअग्रेधिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr.CIT(Exemption),Pune 4. The CIT-Concerned(MH-India) 5. DR, ITAT, Pune Bench ‘A’, Pune 6.ग र्डफ़ इल / Guard File. SGR* आिेश नुस र / By Order वररष्ठदनजीसदिव / Sr. Private Secretary आयकरअपीलीयन्य य दिकरण, पुणे / ITAT, Pune.