Shri Babanrao Narayan Dhokale Shikshan V Sanshodhan Sanstha, Pune V. The Commissioner of Income Tax (Exemption), Pune

ITA 973/PUN/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 4799 (ITAT-PUNE)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-12-2023
• Assessment Year: misc
• Appeal Filed On: 04-09-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Principle of natural justice
• Section: 80G

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “बी” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “B” BENCH, PUNE BEFORE HON’BLE SHRI PARTHA SARATHI CHOUDHURY, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.973/PUN/2023 Shri Babanrao Narayan Dhokale Shikshan V Sanshodhan Sanstha Nadanvan Colony, Behind Garade Girni, Sant Tukaram Nagar, Pune-411039. PAN: AAUTS7725A . . . . . . .अपीलाथी / Appellant बनाम / V/s The Commissioner of Income Tax (Exemption), Pune . . . . . . . प्रत्यथी / Respondent द्वारा / Appearances Assessee by : Mr B B Mane Revenue by : Mr Ajaykumar Kesari सुनवाई की तारीख / Date of conclusive Hearing : 05/12/2023 घोषणा की तारीख / Date of Pronouncement : 05/12/2023 आदेश / ORDER PER G. D. PADMAHSHALI, AM; This appeal lies against DIN & order No. ITBA/EXM/F/EXM45/2023-24/105333571(1) dt. 31/05/2023 passed by Commissioner of Income Tax (Exemption), Pune [for short ‘CIT(E)’] u/s 12A(1)(ac)(vi) of the Income-tax Act, 1961 [for short ‘the Act’] thereby rejecting application for and cancelling provisional registration granted u/s 12AB r.w.s. 12A(1)(ac)(i) of the Act. Shri Babanrao Narayan Dhokale Shikshan V Sanshodhan Sanstha. ITA No.973/PUN/2023 ITAT-Pune Page 2 of 4 2. We have heard rival contention and perused material placed on records and note that, the appellant vide Form No.10AB dt. 26/11/2022 applied to respondent u/c (iii) of section 12A(1)(ac) of the Act, thereby seeking regular/final registration u/s 12AB of the Act. We note that, upon appellants failure to annexe required & necessary documents as contemplated u/r 17A(2) of IT-Rules, the Ld. CIT(E) by notice dt. 03/03/2023 accorded an opportunity to make good the deficiency in the application. Following principle of natural justice, a further notice dt. 24/07/2023 was also served on the appellant calling upon to cure defects/discrepancies which came to notice from material submitted by the assessee. The appellant’s failure to address discrepancies has constrained the registering authority Ld. CIT(E) to reject the application. In absence of necessary explanation and submission of cogent evidences against discrepancies communicated, positive satisfaction about genuineness of activities of the appellant could not be arrived by the Ld. CIT(E), which resulted into rejection of application and cancellation of provisional registration granted earlier. Shri Babanrao Narayan Dhokale Shikshan V Sanshodhan Sanstha. ITA No.973/PUN/2023 ITAT-Pune Page 3 of 4 3. Per contra, the Ld. AR after solidifying facts of the case; has sufficiently spelt-out reasons behind appellant’s failure to attend discrepancies and thus prayed for one effective opportunity in the matter with an undertaking to comply with the direction of the Ld. CIT(E) without delay. 4. It has to be appreciated that the 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 the society at large, and in view thereof the registration for public charitable trusts are given in order to ensure that through these charitable trusts benefits flows to entire society, thus the Directive Principles of State Policy are achieved. These provisions of registration u/s 12A/12AB and granting of recognition u/s 80G of the Act enhance socio economic welfare of the society. 5. Furthermore, Income Tax laws are welfare legislations and not penal in nature, therefore, in larger interest of Shri Babanrao Narayan Dhokale Shikshan V Sanshodhan Sanstha. ITA No.973/PUN/2023 ITAT-Pune Page 4 of 4 justice with forgoing observations, we are of the considered view that, the appellant deserves one more 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 to the appellant. 6. In result, the appeal is ALLOWED FOR STATISTCIAL PURPOSES. U/r 34 of ITAT Rules, order pronounced in open court on this Tuesday 05 th day of December, 2023. -S/d- -S/d- PARTHA SARATHI CHAUDHURY G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ PUNE ; दिन ांक / Dated : 05 th day of December, 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 ‘B’, Pune 6.ग र्डफ़ इल / Guard File. Ashwini आिेश नुस र / By Order वररष्ठदनजीसदिव / Sr. Private Secretary आयकरअपीलीयन्य य दिकरण, पुणे / ITAT, Pune.