LATE. MAMASAHEB MOHOL VIDYA VIKAS MANDAL,PUNEQ V. CIT EXEMPTION, PUNE

ITA 2027/PUN/2024

AI Insights

The case involves the Late Mamasaheb Mohol Vidya Vikas Mandal, an educational trust, which applied for registration under section 12AB of the Income Tax Act. The CIT, Exemption, Pune initially issued notices to verify the genuineness of the trust's activities and compliance with legal requirements. However, due to alleged non-compliance with the submission of required information, the CIT, Exemption, Pune rejected the application for registration. The trust appealed against this decision, arguing that the rejection was based on an incorrect reference to a non-existent show cause notice dated 30-10-2024. The Tribunal found this to be a typographical error and, considering the circumstances, remanded the case back to the CIT for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474233 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, Maharashtra Public Trust Act, 1950
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: PRAMOD S. SHINGTE

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2027/PUN/2024 Late Mamasaheb Mohol Vidya Vikas Mandal, 249, Mauli Sadan, Sadashiv Peth, Pune- 411030. PAN : AABTL7146B Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 27.03.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act. 2. Facts of the case, in brief, are that the assessee filed application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act on 29.09.2023. 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 Assessee by : Shri Pramod S. Shingte Revenue by : Shri Amol Khairnar Date of hearing : 20.02.2025 Date of pronouncement : 03.03.2025 ITA No.2027/PUN/2024 2 objects, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 29.11.2023 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. On verification of said information, Ld. CIT, Exemption, Pune found certain discrepancies and issued another notice requesting the assessee to furnish further details/information in this regard on or before 06.02.2024. Not being satisfied with the reply of the assessee, Ld. CIT, Exemption, Pune rejected the application for registration by observing as under :- “6. The assessee responded to the said notice on 24/02/2024 and 13/03/2024. The assessee has not furnished any written submission on the issues raised in the show cause notice. It has, instead, referred to the earlier notice dt. 29/11/2023 and has made some compliance in connection with said notice. Vide show cause notice dt. 30/10/2024, the assessee was requested to explain nature and purpose of the loans raised and its utilisation for trust objects along with copy of permission under section 36A of the Maharashtra Public Trust Act, 1950 from the Charity Commissioner. The assessee, however, has not offered any clarification on the issue. It, thus, appears that the assessee has not taken any permission as required u/s 36A of the MPT Act, 1950. Section 36A(3) of the BPT Act, 1950 provides that \" no trustee shall borrow moneys (whether by way of mortgage or otherwise) for the purpose of or on behalf of the trust of which he is a trustee, except with the previous sanction of the Charity Commissioner, and subject to such conditions and limitations as may be imposed by him in the interest or protection of the trust.\" Thus, said provision mandates the trust to obtain previous sanction from Charity Commissioner in respect of any loan. The assessee, however, has failed to comply with the statutory requirement. 7. Considering the above, the undersigned is unable to draw any satisfactory conclusion about the genuineness of activities of the assessee and compliance of requirements of any other law for the time being in force by the assessee as are material for the purpose of achieving its objects. ITA No.2027/PUN/2024 3 8. In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 12/05/2022 under section 12AB read with section 12A(1)(ac)(vi) of the Income Tax Act, 1961 is hereby cancelled.” 3. It is the above 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 rejected the application mainly on the ground of non-furnishing of written submission on the grounds raised in the show cause notice. Ld AR further submitted that Ld. CIT, Exemption, Pune has referred SCN dated 30-10-2024, whereas no such SCN was issued on the above date instead the application itself was rejected on 27-03-2024. It was further submitted before the bench that it is true that certain information remained to be complied with, but no such notice was issued on 30-10-2024 & therefore the order passed by Ld. CIT, Exemption, Pune is bad in law wherein an irrelevant notice has been relied on for rejecting the application for registration. Accordingly, it was prayed before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune & further requested to remand the matter back to his file to decide the issue afresh after providing one more ITA No.2027/PUN/2024 4 opportunity to the assessee to submit desired information before Ld. CIT, Exemption, Pune. 5. Ld. DR appearing from the side of the Revenue relied on the order passed by Ld. CIT, Exemption, Pune 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 Ld. CIT, Exemption, Pune has rejected the application for registration on the basis of non- submission of various information by the assessee. We also find that Ld. CIT, Exemption, Pune has wrongly referred SCN dated 30-10-2024 which does not exists, however it appears to be a simple typographical error. It was the contention of Ld. counsel of the assessee that the assessee has complied with the notices as much as possible by him & rest of the information will also be complied if one opportunity is provided to the assessee. Considering the totality of the facts of the case, & in the interest of justice, without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune & remand the matter back to him with a direction to decide the issue of registration afresh as per fact & law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the ITA No.2027/PUN/2024 5 notices issued by Ld. CIT, Exemption, Pune in this regard and produce requisite documents/information/ submissions 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 appropriate order as per law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 03rd day of March, 2025. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 03rd March, 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. "