KADLAG PATIL EDUCATION FOUDATION,PUNE V. CIT (EXEMPTION), PUNE

ITA 2540/PUN/2024

AI Insights

The case involves Kadlag Patil Education Foundation, which appealed against the decisions of the CIT (Exemption), Pune, rejecting their applications for permanent registration under section 12A and approval under section 80G of the Income Tax Act. The Tribunal noted that the Assessee had not responded to multiple notices from the CIT (Exemption) due to internal administrative issues, specifically the resignation of the accountant who managed communications. The Tribunal found that the Assessee was not given a fair opportunity to present their case and thus decided to remit the matter back to the CIT (Exemption) for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 770565 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESHARI
• Assessee Lawyers: PREMAL GANDHI
• Keywords: Set aside; Opportunity of being heard; Reasonable cause
• Section: 12A

Judgement Text

" आयकर अपीलीय अिधकरण ”A” \u000fा यपीठ पुणे म\u0015। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A” :: PUNE BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. /ITA Nos.2539 and 2540/PUN/2024 Kadlag Patil Education Foundation Office No. 305 SR No. 22/2A 17/6/11, 2 317/6/2 Nyati Eureka, Pune-411014, Maharashtra Vs CIT (Exemption), Pune PAN: AAICK2939H Appellant/ Assessee Respondent/ Revenue Assessee by Shri Premal Gandhi - (AR) Revenue by Shri Ajay Kumar Keshari - (DR) Date of hearing 14/08/2025 Date of pronouncement 29/08/2025 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: These two appeals filed by the Assessee are against the separate orders of ld. Commissioner of Income Tax(Exemption), Pune rejecting the applications for grant of registration 12A and approval u/s.80G and of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). For the sake of convenience, these two appeals were heard together and are being disposed of by this common order. The Assessee in ITA No.2539/PUN/2024 has raised the following grounds of appeal: Printed from counselvise.com ITA Nos.2539 and 2540/PUN/2024 2 “1. On the facts and in the prevailing circumstances of the case and in law, the learned CIT-Exemption, Pune has erred in rejecting the application in form no 10AB under clause (iii) of section 12A(ac) for permanent registration without giving reasonable opportunity of being heard. The order of the CIT Exemption, Pune may kindly be set aside and permanent registration u/s 12AB may kindly be granted with the restoration of provisional registration granted on 28-05-2021 u/s 12AC r.w.s. 12A(1)(ac)(vi). 2. On the facts and in the prevailing circumstances of the case and in law, the learned CIT-Exemption, Pune has erred in rejecting the application in form no 10AB under clause (iii) of section 12A(ac) for permanent registration in a summary manner, without considering the information and documents available on record viz., Income tax returns for AY 2022-23,2023-24,2024-25 and other mandatory required documents viz., MOA, AOA, Incorporation certificate and financial Statements filed along with application for permanent registration. The order of the CIT Exemption, Pune may kindly be set aside and permanent registration u/s 12AB may kindly be granted with the restoration of provisional registration granted on 28-05-2021 u/s 12AC r.w.s. 12A(1)(ac) (vi). 3. The Appellate craves the right to add, amend, modify, alter, revise, substitute, delete any or all grounds of the appeal, if deemed necessary at the time of hearing of the appeal.” Findings & Analysis : 2. We have heard both the sides and perused the material available on record. We observe that appellant filed an application in Form No.10AB for registration of the trust under clause (iii) of section 12A(1)(ac) of the Act on 29.06.2024. 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 objects, ld.CIT(E) issued notice through ITBA portal on 08.08.2024 requesting the assessee to upload certain information/ details contained therein by 22.08.2024, followed by another notice issued on 24.09.2024 seeking compliance by 01.10.2024 as the assessee Printed from counselvise.com ITA Nos.2539 and 2540/PUN/2024 3 failed to comply to the initial notice. Assessee has not complied any of the notices. Eventually, ld.CIT(E) vide order dated 10.10.2024 rejected the application observing as under : “5. 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. 6. 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. 7. 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. 8. 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. 9. In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 28/05/2021 under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961 is hereby cancelled.” 3. During the course of hearing before us, ld.AR of the Assessee submitted that Accountant Mr. Vedant Bhadait has access to the Printed from counselvise.com ITA Nos.2539 and 2540/PUN/2024 4 email id of the trust. He resigned the job and the Directors were not aware of the notices. Appellant could not reply to the notices. Therefore, he prayed for providing one more opportunity to the appellant to file the requisite details in support of the activities carried out by the appellant. Ld. DR although supported the order of ld.CIT(E) did not oppose if the matter is remitted back to the file of ld.CIT(E). 4. In these facts and circumstances, we are of the considered view that an opportunity to the appellant shall meet the ends of justice. We therefore set aside the order of ld.CIT(E) to the Ld.CIT(E) for de-novo adjudication. The Ld.CIT(E) shall provide opportunity of hearing to the assessee and assessee shall file all relevant documents to substantiate the nature of activities carried out by it. 5. In the result, the Grounds of appeal raised by the assessee are allowed for statistical purpose. ITA No.2540/PUN/2025 6. In this appeal also, appellant has raised similar grounds. The facts are also similar. Assessee has not complied any of the notices issued by ld.CIT(E). Ld. AR submitted that due to the aforestated ‘reasonable cause’ appellant could not reply to the notices. 7. Since we have set aside the issue of Registration u/s.12A to ld.CIT(E), we also set aside the order u/s.80G to CIT(E) for de-novo adjudication. The Ld.CIT(E) shall provide opportunity of hearing to the assessee and assessee shall file all relevant documents. Printed from counselvise.com ITA Nos.2539 and 2540/PUN/2024 5 8. In the result, the Grounds of appeal raised by the assessee are allowed for statistical purpose. Order pronounced in the open Court on 29th August, 2025. Sd/- Sd/- (VINAY BHAMORE) (DIPAK P.RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 29th August, 2025 Satish आदेशक\u0006\u0007ितिलिपअ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “A” ब\u0017च, पुणे / DR, ITAT, “A” Bench, Pune. 6. गाड\u001aफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune. Printed from counselvise.com "