KAI PAI VISHSWANATHRAO BHEGADE PRATISHTHAN,PUNE V. CIT EXEMPTION, PUNE

ITA 2400/PUN/2024

AI Insights

The case involves two appeals by the assessee, Kai Pai Vishswanathrao Bhegade Pratishthan, against the orders of the CIT, Exemption, Pune, which rejected the applications for registration under section 12AB and for approval under section 80G(5) of the IT Act. The tribunal noted that the assessee had initially complied with the CIT's request for information but failed to respond to a subsequent notice due to which the applications were rejected. The tribunal found merit in the assessee's argument that they were not given a proper opportunity to explain their case and thus set aside the CIT's orders, remanding the matter for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 37818 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• 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: DEEPA KHARE
• 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.2399 & 2400/PUN/2024 Kai Pai Vishswanathrao Bhegade Pratishthan, 82, Shaniwar Peth, Bhegde Aali, Talegaon Dabhade, Pune- 410506. PAN : AAETK9858Q 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 16.10.2024 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 26.04.2024 and denying the application for approval in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act filed on 26.04.2024. Assessee by : Smt. Deepa Khare Revenue by : Shri Amol Khairnar Date of hearing : 13.02.2025 Date of pronouncement : 19.02.2025 ITA Nos.2399 & 2400/PUN/2024 2 ITA No.2399/PUN/2024 : 2. The appellant has raised the following grounds of appeal :- “1. The ld. CIT Exemption erred in law and on facts in rejection of application for registration u/s 12AB without considering the facts and circumstances of the case. 2. The appellant prays for opportunity so as to explain its case. 3. The appellant craves leave to add, alter, modify or substitute any ground of appeal at the time of hearing.” 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 26.04.2024. 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 04.06.2024 requesting the assessee to upload 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 04.10.2024. Since the assessee has not furnished any explanation in response to the said notice dated 04.10.2024, Ld. CIT, ITA Nos.2399 & 2400/PUN/2024 3 Exemption, Pune rejected the application for registration and also cancelled the provisional registration granted to the assessee on 04.10.2023 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. 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, ITA Nos.2399 & 2400/PUN/2024 4 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. It was further submitted that somehow the notice was missed & the assessee could not respond in time. 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 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 ITA Nos.2399 & 2400/PUN/2024 5 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.2399/PUN/2024 is allowed for statistical purposes. ITA No.2400/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. 9. In the result, the appeal filed by the assessee in ITA No.2400/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 19th day of February, 2025. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER ITA Nos.2399 & 2400/PUN/2024 6 पुणे / Pune; ᳰदनांक / Dated : 19th 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. "