JANTA FOUNDATION FOR INCLUSION,PUNE V. CIT(EXEMPTION), PUNE

ITA 2309/PUN/2024

AI Insights

The case involves Janta Foundation For Inclusion, which appealed against the orders of the CIT, Exemption, Pune, rejecting their applications for registration under section 12A(1)(ac) and for approval under section 80G(5) of the IT Act. The Tribunal found that the assessee had initially complied with the CIT's request for information but failed to respond to a subsequent notice due to the short time allowed. The Tribunal acknowledged the assessee's right to a fair hearing and thus remanded the case back to the CIT for a fresh decision, emphasizing the need for a reasonable opportunity for the assessee to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 41427 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: S.N. PURANIK
• Keywords: Additional evidence
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.2309 & 2310/PUN/2024 Janta Foundation For Inclusion, Flat No.A-203, Gulmohar Imperial, Dhayari B.O., Nanded City, Pune- 411041. PAN : AAFCJ0990A Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 13.09.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act filed on 27.03.2024 and denying the application for approval Assessee by : Shri S. N. Puranik Revenue by : Shri Amol Khairnar Date of hearing : 10.02.2025 Date of pronouncement : 14.02.2025 ITA Nos.2309 & 2310/PUN/2024 2 in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act filed on 27.03.2024. ITA No.2309/PUN/2024 : 2. The appellant has raised the following grounds of appeal :- “1. Commissioner of Income Tax Exemption has erred on facts as well as in law in cancelling provisional Registration granted and rejecting to grant permanent Registration. Appellant prays to restore provisional Registration and Grant Permanent Registration. 2. Commissioner of Income Tax Exemption has erred in not granting opportunity as per Adjournment request and passed the Order without communicating rejection. Appellant prays for appropriate relief of adjournment. 3. Commissioner of Income Tax Exemption has rejected Registration without sufficient reasons for by observing in Para 4(i)(ii)(iii) of the Order rejecting Registration. 4. Appellant prays to add, alter, amend, take additional grounds, submit additional evidence, and/or withdraw the ground/s, during appellate Proceedings.” 3. Facts of the case, in brief, are, that the assessee filed application for registration in Form No.10AB under clause (iii) of section 12(1)(ac) of the IT Act on 27.03.2024. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 20.05.2024 requesting the assessee to upload ITA Nos.2309 & 2310/PUN/2024 3 certain information/clarification. The desired information was furnished by the assessee. However, Ld. CIT, Exemption, Pune found certain discrepancies in the explanation filed by the assessee and sought some further information & issued another notice on 02.09.2024. Since the assessee has not furnished any explanation in response to the said notice dated 02.09.2024, Ld. CIT, Exemption, Pune rejected the application for registration and also cancelled the provisional registration granted to the assessee on 16.11.2021 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the IT Act. It is this order against which the assessee is in appeal before this Tribunal. 4. Ld. AR appearing from the side of the assessee submitted before us that Ld. CIT, Exemption, Pune has not provided proper opportunity to the assessee, & therefore the order is not justified. It was submitted that Ld. CIT, Exemption, Pune ought to have provided one more opportunity of hearing to the assessee so the assessee can furnish the required information, but Ld. CIT, Exemption, Pune failed to do so, accordingly, it was requested before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to provide one opportunity to submit the documents in support of application for registration. ITA Nos.2309 & 2310/PUN/2024 4 A paper-book consisting various relevant documents is also furnished before the bench. 5. Ld. DR appearing from the side of the Revenue placed heavy reliance on the orders passed by the subordinate authorities and requested to confirm the same. 6. We have heard Ld. Counsels from both the sides and perused the material available on record. We find that admittedly the assessee made compliance to the initial notice issued by Ld. CIT, Exemption, Pune, but the subsequent notice could not be answered by him. It is the sole contention of Ld. AR that if the assessee has not furnished requisite information/documents on the requisite date, one further opportunity should have been provided to him by Ld. CIT, Exemption, Pune, since only 7 days time was allowed to respond against the notice. We find some force in the arguments of Ld. AR & therefore considering the totality of the facts of the case & in the interest of justice and without going into the merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to give one more opportunity to the assessee to file the requisite details and decide the application for registration afresh as ITA Nos.2309 & 2310/PUN/2024 5 per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and produce requisite documents/information in support of the application for registration without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee are partly allowed. 7. In the result, the appeal filed by the assessee in ITA No.2309/PUN/2024 is allowed for statistical purposes. ITA No.2310/PUN/2024 : 8. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(iii) to the file of Ld. CIT, Exemption, Pune for de novo adjudication, therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s 80G(5) as well to the file of Ld. CIT, Exemption, Pune being consequential, for de novo adjudication. ITA Nos.2309 & 2310/PUN/2024 6 9. In the result, the appeal filed by the assessee in ITA No.2310/PUN/2024 is allowed for statistical purposes. 10. To sum up, both the above captioned appeals filed by the assessee are allowed for statistical purpose. Order pronounced on this 14th day of February, 2025. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 14th February, 2025. 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. The Pr. CIT/CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "