SAMBHAV KADAM FOUNDATION, Pune V. Commissioner of Income Tax, Pune, Pune

ITA 99/PUN/2023

AI Insights

The case involves the Sambhav Kadam Foundation, which applied for registration under section 12AA of the Income Tax Act, 1961, to avail tax exemptions for its activities focused on education and career counseling for armed forces personnel. The CIT, Exemptions, Pune, initially denied this registration, citing a lack of evidence supporting the foundation's claimed activities. The foundation appealed this decision, arguing that they had complied with all requests for information and that the CIT had not provided a reasonable opportunity to substantiate their activities. The Tribunal found that the CIT had not adequately sought evidence as claimed and thus remanded the case for a fresh review.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137460 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 29-03-2023
• Assessment Year: misc
• Appeal Filed On: 24-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.98 & 99/PUN/2023 Sambhav Kadam Foundation, Flat No.23, Gardenia, Bldg. B-IV, S.No.36/1/1/1/1/1/1, Wadgaon Sheri, Pune- 411014. PAN : ABECS0900R Vs. CIT Exemptions, Pune. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: These are the appeals filed by the assessee against the separate orders of ld. Commissioner of Income Tax, Exemption, Pune [‘the CIT, Exemption] dated 30.11.2022 passed u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 (‘the Act’) rejecting the grant of registration u/s 12A(1)(ac)(iii) of the Act. 2. Since the identical facts and common issues are involved in both the above captioned appeals, we proceed to dispose of the same by this common order. Assessee by : Shri S. Singhi Shri Chrisann Millor Revenue by : Shri Sardar Singh Meena Date of hearing : 30.03.2023 Date of pronouncement : 30.03.2023 ITA Nos.98 & 99/PUN/2023 2 3. For the sake of convenience and clarity, the facts relevant to the appeal in ITA No.98/PUN/2023 are stated herein. ITA No.98/PUN/2023 : 4. Briefly, the facts of the case are that the appellant is a company incorporated under the provisions of section 8 of the Companies Act, 2013. It was formed with the object of imparting education for armed force personnel customized to their needs, skill mapping and reskilling of armed forces personnel for career opportunities on retirement, career counselling for them, creating an intelligent interface between military veterans etc. The appellant company had applied for registration u/s 12AA of the Act in Form No.10AB under clause (iii) of first proviso to section 80G(5) of the act on 24.10.2020. 5. On receipt of the said application, the ld. CIT, Exemption was issued a notice calling upon the appellant society to furnish certain information in order to satisfy himself as to the genuineness of the activities stated to have been carried out by the appellant society. On receipt of the said notice, the appellant society filed information on 13.09.2022. On going through the said explanation filed by the appellant society, the ld. CIT, Exemption formed an opinion that no evidence in support of the activities stated to have been carried out ITA Nos.98 & 99/PUN/2023 3 by the appellant society was furnished and, accordingly, drew adverse inference as to the genuineness of activities of the appellant society and denied the grant of registration u/s 12A(1)(ac)(iii) of the Act. 6. Being aggrieved, the appellant is in appeal before us in the present appeal. 7. It is submitted before us that the appellant had duly complied with the notices issued by the ld. CIT, Exemption. However, the ld. CIT, Exemption without giving a reasonable opportunity to produce the evidence had drawn adverse inference about genuineness of activities of appellant society accordingly, denied the exemption. 8. On the other hand, ld. CIT-DR has no serious objection for remission the matter to the file of the ld. CIT, Exemption for fresh disposal. 9. We heard the rival submissions and perused the material on record. We had gone through the impugned order and find that the ld. CIT, Exemption had issued a notice calling for certain information in order to satisfy himself as to the genuineness of activities stated to have been carried out by the appellant society. The appellant society had duly complied with the said notice by filing the requisite information as called for by the ld. CIT, ITA Nos.98 & 99/PUN/2023 4 Exemption. However, the ld. CIT, Exemption had drawn adverse inference as to the genuineness of activities stated to have been carried out by the appellant society in the absence of any evidence. But, there is no material on record to show that the ld. CIT, Exemption had sought any evidence in support of the activities stated to have been carried out by the appellant society. Thus, we are of the considered opinion that the impugned order suffers from the voice of arbitrariness as well as unreasonableness. Therefore, we set-aside the impugned order and remand the matter to the file of ld. CIT, Exemption for fresh disposal in accordance with law after affording reasonable opportunity of being heard to the assessee. 10. In the result, the appeal filed by the assessee in ITA No.98/PUN/2023 stands partly allowed for statistical purposes. ITA No.99/PUN/2023 : 11. Since the facts and issues involved in both the above captioned appeals of the assessee are identical, therefore, our decision in ITA No.98/PUN/2023 shall apply mutatis mutandis to the appeal of the assessee in ITA No.99/PUN/2023 respectively. Accordingly, the appeal of the assessee in ITA No.99/PUN/2023 stands partly allowed for statistical purposes. ITA Nos.98 & 99/PUN/2023 5 12. To sum up, both the above captioned appeals of the assessee stands partly allowed for statistical purposes. Order pronounced on this 30 th day of March, 2023. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 30 th March, 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, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.