KAILASH SHIKSHAN MANDAL,PUNE V. CIT ( EXEMPTION) PUNE, PUNE

ITA 780/PUN/2025

AI Insights

The case involves Kailash Shikshan Mandal, an educational trust, appealing against the decision of the CIT (Exemption), Pune, which rejected their application for renewal of registration under section 12AB of the Income Tax Act, 1961. The CIT (Exemption) had rejected the application on the grounds that the assessee did not submit a copy of the regular registration under section 12AB, which was a prerequisite for the application under clause (ii) of section 12A(1)(ac). The Tribunal found that the CIT (Exemption) had not considered the merits of the case and had not drawn any adverse inference against the assessee but rejected the application solely due to non-compliance with procedural requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717683 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 24-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: ABHAY A AVACHAT
• Keywords: Set aside; Opportunity of being heard
• Section: 12A

Judgement Text

" आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.780/PUN/2025 Kailash Shikshan Mandal, Kailash Shikshan Mandal Rahu, Walki B.O., Bhawadi, Dist. Pune-412207 PAN : AAETK1235F Vs. CIT (Exemption), Pune अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee by : Shri Abhay A Avachat Department by : Shri Amol Khairnar Date of hearing : 10-07-2025 Date of Pronouncement : 12-08-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : The appeal filed by the assessee is directed against the order dated 22.01.2025 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”] whereby he rejected the application of the assessee filed before him on 20.09.2024 in Form No. 10AB under sub-clause (ii) of clause (ac) of sub- section(1) of section 12A of the Income Tax Act, 1961 (the “Act”). 2. The assessee has raised the following grounds of appeal : “On facts and circumstances and in law, 1. The learned CIT (Exemption), Pune has erred in rejecting assessee's application for registration /renewal by passing order under clause (ii) of section 12A(1)(ac) r. w. s. 12AB of the Income Tax Act. 1961. 2. Without considering the facts and circumstances of the case and the law, the Id CIT (Exemption) has erred in rejecting assessee's application for registration/renewal. 3. The order of rejection has been passed without considering submission and explanation filed by the assessee and thus suffers from infirmity. 4. The learned CIT (Exemption), Pune has erred in rejecting assessee's application without affording adequate opportunity of being heard and without considering assessee's submission. 5. The CIT erred in rejecting application of renewal without going into merits of the case and despite the fact that assessee was having valid and regular approval u/s 12AB. Printed from counselvise.com 2 ITA No.780/PUN/2025 6. The Assessee prays before your honour to afford and allow it an opportunity of being heard on merits of the case and to allow any other relief under income tax law. 7. The assessee craves leave to add, alter, amend, modify, delete any of the grounds of appeal.” 3. Briefly stated, the facts of the case are that on receipt of the assessee’s application filed in Form No. 10AB u/s 12A(1)(ac)(ii) of the Act along with annexures thereto, 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, the Ld. CIT(E) issued notice on 05.11.2024 through ITBA portal which was duly served on the assessee requesting the assessee to upload certain information/clarification contained therein by 20.11.2024 under the provisions of section 12AB(i)(b)(i) of the Act. On verification of the details/documents filed by the assessee in response to the said notice, the Ld. CIT(E) observed few discrepancies which were communicated vide issue of another notice dated 07.01.2025 duly served upon the assessee via e-portal/email seeking compliance by 14.01.2025. The said discrepancies are reproduced below : \"On verification of records and details furnished by you, it is seen that you are not having regular registration under section 12A(1)(ac) of the Act under clause (i) or (iii) of the Act. Further, it is noticed from the CPC 2.0 Portal that you have obtained provisional registration under Item (A) of sub-clause (vi) of clause (ac) of sub-section (1) of section 12A of the Act. Therefore, the prerequisite for application under sub-clause (ii) of clause (ac) of sub-section (1) of section 12A of the Act is not fulfilled in your case.\" 3.1 As the assessee failed to comply to the above notice, the Ld. CIT(E) by observing that the non-submission of copy of order of regular registration under section 12AB establishes the fact that the prerequisite for application under clause (ii) of Section 12A(1)(ac) of the Act is not fulfilled in this case, rejected the application of the assessee as non-maintainable without going into the merits of the case. The relevant finding and observation of Ld. CIT(E) is as under: “6. On verification of the details / documents submitted by the assessee, it is seen that the assessee has not furnished the copy of REGULAR REGISTRATION in form No. 10AC under section 12AB read with section 12A(1)(ac)(i) or 12A(1)(ac)(1ii) of the Income Tax Act, 1961 but submitted a copy of PROVISIONAL REGISTRATION under section 12AB read with section 12A(1)(ac)(vi) of the Income Tax Act, 1961. 7. The present application is filed by the assessee under clause (ii) of section 12A(1)(ac) of the Income Tax Act, 1961. The provisions of clause (ii) of section 12A(1)(ac) are related to application for renewal of regular registration of a trust or institution which is already having regular registration under section 12AB of the Act and the period of said registration is about to expire. 8. The assessee was specifically requested vide the initial notice to furnish the copy of order of regular registration under section 12AB of the Income Tax Act, 1961. Such copy is actually required to be furnished along with the application itself under the provisions of Rule 17A(2)(e) of the Income Tax Rules, 1962. However, the assessee has neither submitted the same along with the application Printed from counselvise.com 3 ITA No.780/PUN/2025 nor in response to the notice issued in this regard. Thus the assessee failed to furnish the same. The copy of order submitted by the assessee is a copy of provisional registration under section 12AB read with clause (vi) of section 12A(1)(ac) of the Income Tax Act, 1961 and not a copy of regular registration under section 12AB read with clause (i) or clause (iii) of section 12A(1)(ac) of the Income Tax Act, 1961. 9. The non-submission of copy of order of regular registration under section 12AB of the Income Tax Act, 1961 establishes the fact that the prerequisite for application under clause (ii) of Section 12A(1)(ac) of the Income Tax Act, 1961 is not fulfilled in this case. Therefore, prima-facie it appears that the application/is not maintainable. 10. In view of the above, the application filed by the assessee is treated as non- maintainable and hence, 'rejected' for statistical purposes without going into the merits of the case and no adverse inference is drawn against the assessee.” 4. Aggrieved, the assessee is in appeal before the Tribunal and all the grounds of appeal relate thereto. 5. Referring to the paper book comprising of 34 pages containing the documents/details furnished by the assessee before the Ld. CIT(E), the Ld. AR submitted that most of the required documents were submitted in response to the initial notice issued by the Ld. CIT(E). Admittedly, there was non- compliance to the subsequent notice issued by the Ld. CIT(E), however, it was not intentional but occurred on account of certain unavoidable circumstances beyond the control of the assessee. He submitted the Ld. CIT(E) has rejected the application for the reason that the assessee has not submitted a copy of the regular registration under section 12AB of the Act but this is not correct as the same was filed by the assessee and it was available on record with the Ld CIT(E). He therefore prayed that in the interest of justice an opportunity may be granted to the assessee to substantiate and present its case by furnishing all the details/ documents sought for by the Ld. CIT(E). Accordingly, the matter may be set aside to the file of the Ld. CIT(E) to adjudicate the same afresh on merits after affording an opportunity of being heard to the assessee. 6. The Ld. DR had no objection the above request of the Ld. AR. 7. We have heard the Ld. Representatives of the parties and perused the records and the paper book filed by the Ld. AR on behalf of the assessee. We find that the Ld. CIT(E) has rejected the application of the assessee due to non- compliance to the second notice issued asking for certain clarification/documentary evidence as per the discrepancy noted by him. The Ld. CIT(E) has rejected the application of the assessee without dwelling into the merits of the case and not drawing any adverse inference against the assessee but only for the reason that the assessee has not submitted a copy of the Printed from counselvise.com 4 ITA No.780/PUN/2025 regular registration under section 12AB of the Act. Before us, the Ld. AR has submitted that most of the information/ details/ documents sought for by the Ld. CIT(E) were filed by the assessee. The assessee is having a valid and regular approval under section 12AB of the Act and a copy of the said approval was duly furnished and is available on Ld. CIT(E)’s records. It is also the submission of the Ld. Counsel for the assessee that given an opportunity the assessee is in a position to substantiate its case before the Ld. CIT(E) by filing all the requisite details/ documents as may be further called upon by the Ld. CIT(E). Considering the totality of the facts and in the circumstances of the case enumerated above, we are of the view that it would be judicially expedient and in the interest of justice and fair play, if the matter is restored back to the file of Ld. CIT(E) to consider the assessee’s application afresh and decide the same on merits, in accordance with fact and law after allowing one final opportunity of being heard to the assessee and present its case. Needless to say, the assessee shall provide the requisite support in terms of submitting the relevant details/documentary evidence as may be required/called upon on the appointed date without seeking adjournment under any pretext unless required for sufficient cause, failing which the Ld. CIT(E) shall be at liberty to pass appropriate order as per law. We direct and order accordingly. 8. In the result, the appeal of assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 12th August, 2025. Sd/- Sd/- (Manish Borad) (Astha Chandra) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; दिन ांक / Dated : 12th August, 2025. रदि आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1. अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. दिभ गीय प्रदिदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 5. ग र्ड फ़ इल / Guard File. //सत्य दपि प्रदि// True Copy// आिेश नुस र / BY ORDER, िररष्ठ दनजी सदचि / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune Printed from counselvise.com "