KACHHI DASA OAWAL JAIN DNYATI MAHAJAN SEVABHAVI SANSTHA ,NASHIK V. CIT, EXEMPTION, PUNE

ITA 1037/PUN/2025

AI Insights

The case involves Kachhi Dasa Oawal Jain Dnyati Mahajan Sevabhavi Sansta, a trust, appealing against the decision of the CIT(Exemption), Pune, which rejected their application for registration under section 12A of the Income Tax Act, 1961. The CIT(Exemption) had rejected the application due to non-compliance with requests for additional information to verify the genuineness of the trust's activities. The tribunal found that the assessee was not given a fair opportunity to respond to the second notice and thus restored the matter to the CIT(Exemption) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 771895 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: R.P. DAWARE VIRTUALLY
• Keywords: Opportunity of being heard
• Section: 12A; 12

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No.1037/PUN/2025 Kachhi Dasa Oawal Jain Dnyati Mahajan Sevabhavi Sansta Yellosoft Infotech Harsiddhi Apartment, Krishna Nagar, Near Old Adgaon Naka, Adgaon, Nashik – 422003 Vs. CIT(Exemption), Pune PAN: AAIAK2381H (Appellant) (Respondent) Assessee by : Shri R.P. Daware (virtually) Department by : Shri Amol Khairnar, CIT-DR Date of hearing : 19-08-2025 Date of pronouncement : 25-08-2025 O R D E R PER ASTHA CHANDRA, JM: This appeal filed by the assessee is directed against the order dated 14.03.2025 of the Ld. CIT(Exemption), Pune rejecting the application for grant of registration u/s 12A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 25.10.2024 for registration of the trust under section 12A(1)(ac)(vi)- ITEM(B) of the Act. With a view to verify the genuineness of the 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 Printed from counselvise.com 2 ITA No.1037/PUN/2025 objects, a notice was issued through ITBA portal on 23.11.2024 requesting the assessee to upload certain information / clarification. The assessee in response to the notice issued by the Ld. CIT(E) filed certain details. On verification of the details submitted by the assessee, the Ld. CIT(E) noted various discrepancies for which another notice was issued to the assessee asking the assessee to explain on account of those discrepancies. Since the assessee did not respond to the same, the Ld. CIT(E) rejected the application for grant of registration u/s 12A of the Act by observing as under: “6. Since, the assessee has not furnished any explanation to the discrepancies communicated to it, it is presumed that the assessee has nothing to say in the matter. 7. The information / details were called for under the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961. These are the basic details required to ascertain the overall nature of the activities of the assessee and are directly relevant to the present proceedings. However, the assessee has failed to comply despite giving sufficient opportunities as discussed above including an opportunity of being heard. 8. Thus, the assessee has failed to furnish the details called for under the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961 to verify the genuineness of activities of the trust/institution and to verify the 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. 9. In absence of the compliance to the above requirement, it is not possible to arrive at any conclusion about the genuineness of activities of the assessee and the compliance to the 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. 10. It is clear from the above that the assessee was given sufficient opportunity to comply, but it has not complied to the same. It seems that the assessee is not having any supporting documents/ evidence to submit. The assessee has failed to comply with the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961. Hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and the compliance to the 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. Therefore, the undersigned has left no alternative but to reject the application. Printed from counselvise.com 3 ITA No.1037/PUN/2025 11. In view of the above, the application filed by the assessee under section 12A(1)(ac)(vi)-ITEM(B) of the Income Tax Act, 1961 is hereby rejected.” 5. Aggrieved with such order of Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds: 1. The learned CIT (Exemption) Pune erred in law and on facts in not granting registration u/s 12 AB of ITA, 1961, trust has genuine activities. 2. There was no intention of the appellant not to give information-first notice reply was given in time second notice reply was not given oversight. 3. The appellant craves leave to add, alter, clarify, explain, modify, delete any of the grounds of appeal, and to seek any just and fair relief. 6. The Ld. Counsel for the assessee submitted that due to preoccupation of the concerned Chartered Accountant, the details could not be filed. He submitted that given an opportunity the assessee is in a position to substantiate its case by filing all the relevant details for deciding the issue afresh. He accordingly submitted that the matter may be restored to the file of the Ld. CIT(E). 7. The Ld. DR on the other hand strongly objected to the arguments advanced by the Ld. Counsel for the assessee. 8. We have heard the rival arguments made by both the sides, perused the order of the Ld. CIT(E) and the paper book filed on behalf of the assessee. It is an admitted fact that due to non-compliance to the 2nd notice issued by the Ld. CIT(E) asking for certain clarifications regarding the discrepancies pointed out by him, he Printed from counselvise.com 4 ITA No.1037/PUN/2025 rejected the application for grant of registration and also cancelled the provisional registration granted earlier. It is the submission of the Ld. Counsel for the assessee that given an opportunity the assessee is in a position to substantiate its case by filing all the relevant details before the Ld. CIT(E). Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the CIT(E) with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details to his satisfaction and decide the issue as per fact and law. The assessee is also hereby directed to submit the details as called for by the CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the CIT(E) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 25th August, 2025. Sd/- Sd/- (R. K. PANDA) (ASTHA CHANDRA) VICE PRESIDENT JUDICIAL MEMBER पुणे Pune; दिन ांक Dated : 25th August, 2025 GCVSR Printed from counselvise.com 5 ITA No.1037/PUN/2025 आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune S.No. Details Date Initials Designation 1 Draft dictated on 19.08.2025 Sr. PS/PS 2 Draft placed before author 25.08.2025 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order Printed from counselvise.com "