LEARNING TEMPLE EDUCATION FOUNDATION,NASHIK V. CIT(EEXMPTION), PUNE

ITA 2564/PUN/2024

AI Insights

The case involves the Learning Temple Education Foundation, which appealed against the decisions of the CIT(Exemption), Pune, rejecting their applications for registration under section 12A and approval under section 80G of the Income Tax Act, 1961. The CIT(Exemption) had rejected these applications due to the assessee's failure to respond to notices requesting information to verify the genuineness of the trust's activities and compliance with legal requirements. The Tribunal found that the assessee did not respond due to the notice being sent to a former tax consultant's email, and thus, in the interest of justice, decided to give the assessee another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471205 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: VAIBHAV R CHAUGULE
• Section: 12A; 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.2563 & 2564/PUN/2024 Learning Temple Education Foundation 409/45/CB1/10/07, CIDCO, Trimurti Chowk, Nashik – 422008 Vs. CIT (Exemption), Pune PAN: AABTL4160D (Appellant) (Respondent) Assessee by : Shri Vaibhav R Chaugule Department by : Shri Amol Khairnar, CIT-DR Date of hearing : 11-03-2025 Date of pronouncement : 20-03-2025 O R D E R PER R.K PANDA, VP: The above two appeals filed by the assessee are directed against the separate orders dated 15.10.2024 of the CIT(Exemption), Pune rejecting the application for grant of registration u/s 12A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and approval u/s 80G of the Act. For the sake of convenience, both these appeals were heard together and are being disposed of by this common order. 2. Facts of the case in brief, are that the assessee filed an application in Form No.10AB on 21.05.2024 for registration of the trust under clause (iii) of section 12A(1)(ac) of the Act. 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 2 ITA No.2563 & 2564/PUN/2024 objects, a notice was issued through ITBA portal on 24.06.2024 requesting the assessee to upload certain information / clarification. Although the notice was duly served on the assessee through e-portal and e-mail, however, the assessee did not respond to such notice. The CIT(Exemption) therefore, rejected the application filed for grant of registration u/s 12A of the Act and also cancelled the provisional registration granted earlier u/s 12AB of the Act by 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 11/03/2022 under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961 is hereby cancelled.” 3. Similarly, in absence of any response from the side of the assessee, he also rejected the application for approval u/s 80G of the Act. 3 ITA No.2563 & 2564/PUN/2024 4. Aggrieved with such order of CIT(Exemption) rejecting the application for grant of registration u/s 12A and approval u/s 80G, the assessee is in appeal before the Tribunal. 5. The Ld. Counsel for the assessee at the time of hearing submitted that the notice issued by the office of the CIT(Exemption) went to the e-mail ID of previous tax consultant who did not inform the assessee for which the assessee could not file any submission on the appointed date. He submitted that in the interest of justice, the assessee should be given an opportunity to substantiate its case by filing the requisite details before the Ld. CIT(E). 6. The Ld. DR on the other hand heavily relied on the order of the Ld. CIT(E) and submitted that despite opportunities granted by the Ld. CIT(E), the assessee did not make any submission for which the Ld. CIT(E) was compelled to pass this order. 7. We have heard the rival arguments made by both the sides, perused the order of the CIT(E) and the paper book filed on behalf of the assessee. It is an admitted fact that the assessee did not respond to the notice issued by the office of CIT(Exemption) for which he rejected the application filed by the assessee for grant of registration u/s 12A of the Act and also cancelled the provisional registration granted earlier u/s 12AB. Similarly due to non-compliance of the assessee, he also rejected the application for approval u/s 80G of the Act. It is the 4 ITA No.2563 & 2564/PUN/2024 submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the CIT(E) to his satisfaction. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the CIT(Exemption) with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details to his satisfaction and decide the issue as per fact and law. The assessee is also hereby directed to submit the details as called for by the CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the CIT(Exemption) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 8. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open Court on 20th March, 2025. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 20th March, 2025 GCVSR 5 ITA No.2563 & 2564/PUN/2024 आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune S.No. Details Date Initials Designation 1 Draft dictated on 17.03.2025 Sr. PS/PS 2 Draft placed before author 20.03.2025 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 Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order "