KKVIANS VASUNDHARA FOUNDATION KOLHAPUR,KOLHAPUR V. CIT EXEMPTION, PUNE

ITA 2862/PUN/2024

AI Insights

The case involves KKVians Vasundhara Foundation, which appealed against the decision of the CIT (Exemption), Pune, who denied the foundation's application for approval under section 80G of the Income Tax Act. The foundation's application was initially rejected due to non-compliance with requests for information needed to verify the genuineness of its activities. Despite multiple opportunities to respond, the foundation failed to provide the required documentation or appear at the hearings. Consequently, the CIT (E) rejected the application, a decision which was later upheld by the Tribunal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826642 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2026
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 30-12-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Keywords: Opportunity of being heard
• Section: 11; 12; 10; 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 ITA No.2862/PUN/2024 KKVians Vasundhara Foundation Kolhapur Vishwaroop Apartment, Near Karan Nursery, Kolhapur – 416003 Vs. CIT (Exemption), Pune PAN: AAETK4057F (Appellant) (Respondent) Assessee by : None Department by : Shri Amol Khairnar, CIT-DR Date of hearing : 05-01-2026 Date of pronouncement : 07-01-2026 O R D E R PER R.K. PANDA, VP: This appeal filed by the assessee is directed against the order dated 25.10.2024 of the Ld. CIT(Exemption), Pune refusing grant of approval u/s 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. This appeal was fixed for a number of times and no one was appearing on behalf of the assessee. A perusal of the order sheet entries shows that this appeal was earlier fixed for hearing on 03.06.2025, 18.08.2025, 29.10.2025 and 05.01.2026 and nobody was appearing on any of the occasions. When the name of the assessee was called today, none appeared on behalf of the assessee nor any application seeking adjournment of the case has been filed. Under these Printed from counselvise.com 2 ITA No.2862/PUN/2024 circumstances, we deem it proper to decide this appeal on the basis of material available on record and after hearing the Ld. DR. 3. Although a number of grounds have been raised by the assessee, however, these all relate to the order of the Ld. CIT(E) refusing grant of approval u/s 80G of the Act. 4. Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 26.06.2024 for approval of the trust under clause (iii) of first proviso to sub section (5) of section 80G of the Act. With a view to verify the genuineness of the activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G of the Act, a notice was issued through ITBA portal on 24.07.2024 requesting the assessee to upload certain information / clarification. The assessee was requested to submit the compliance by 07.08.2024. However, despite various opportunities granted by the Ld. CIT(E), the assessee did not respond for which another opportunity was granted to the assessee vide notice dated 08.10.2024 asking the assessee to explain as to why the application should not be rejected and why the approval granted u/s 80G of the Act should not be cancelled. The assessee was requested to comply by 14.10.2024. However, there was no compliance from the side of the assessee. In view of the above, the Ld. CIT(E) rejected the application for grant of approval u/s 80G of the Act by observing as under: Printed from counselvise.com 3 ITA No.2862/PUN/2024 “5. The information / details were called for under the provisions of sub-clause (a) of clause (ii) of second proviso to section 80G(5) 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 sub-clause (a) of clause (ii) of second proviso to section 80G(5) of the Income Tax Act, 1961 to verify the genuineness of activities of the trust or institution and fulfilment of conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act. 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 fulfilment of conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act. 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 sub-clause (a) of clause (ii) of second proviso to section 80G(5) of the Income Tax Act, 1961 and hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and fulfilment of conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act and has left no alternative but to reject the application. 9. As per the condition vide clause (1) of section 80G(5) of the Income Tax Act, 1961, the approval is available only if the income of the institution or fund is not be liable to inclusion in its total income under the provisions of section 11 and 12 or clause (23AA) / clause (23C) of section 10 of the Income Tax Act, 1961. Exclusions for the said condition are detailed in clause (a), (b) and (c) of proviso to clause (1) of section 80G(5) of the Act. Therefore, the institution/fund is required to be regularly registered/approved either under section 12AB or 10(23AA) or 10(23C) of the Income Tax Act, 1961 or the institution/fund shall be a Regimental Fund or Non-Public Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependents. 10. In the instant case it is noticed that the assessee is neither regularly registered u/s 12AB read with section 12A(1)(ac) (i) /12A(1)(ac)(iii) nor having regular approval under section 10(23C) read with clause (i) / (iii) of first proviso to the said section and the case is not covered under the exclusions provided vide proviso to clause (1) of section 80G(5) of the Act. The assessee is not approved under section 10(23AA) of the Act. The assessee is also not a Regimental Fund or Non-Public Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependents. In fact, the application of the assessee in form No.10AB for registration u/s 12AB filed under the provisions of section 12A(1)(ac)(iii) of the Act has been rejected vide order Printed from counselvise.com 4 ITA No.2862/PUN/2024 dated 24/10/2024. Therefore, the condition (i) of section 80G(5) of the Income Tax Act. 1961 is also not fulfilled in this case. 11. In view of the above, the application filed by the assessee is hereby rejected and the provisional approval dated 12/05/2022 under section 80G(5)(vi) read with clause (iv) of first proviso to section 80G(5) of the Act is hereby cancelled.” 5. Aggrieved with such rejection of approval u/s 80G by Ld. CIT(E), the assessee is in appeal before the Tribunal. 6. We have heard the Ld. DR and perused the record. A perusal of the order of the Ld. CIT(E) shows that due to persistent non-compliance of the assessee to the statutory notices issued by him, the Ld. CIT(E) rejected the application for grant of approval u/s 80G of the Act by passing a speaking order. Nothing has been brought before us to take a contrary view than the view taken by the Ld. CIT(E). Accordingly, the order of the Ld. CIT(E) refusing grant of approval u/s 80G of the Act is upheld and the grounds raised by the assessee are dismissed. 7. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open Court on 7th January, 2026. Sd/- Sd/- (VINAY BHAMORE) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 7th January, 2026 GCVSR Printed from counselvise.com 5 ITA No.2862/PUN/2024 आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune S.No. Details Date Initials Designation 1 Draft dictated on 05.01.2026 Sr. PS/PS 2 Draft placed before author 05.01.2026 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 Office Superintendent 10 Date on which file goes to the A.R. 11 Date of Dispatch of order Printed from counselvise.com "