MAADHAV NARSO SARAWADEKAR FOUNDATION,PUNE, MAHARASHTRA V. THE CIT (EXEMPTION), PUNE, PUNE, MAHARASHTRA

ITA 239/PUN/2025

AI Insights

The case involves the Maadhav Narso Sarawadekar Foundation, a non-profit organization, which appealed against the rejection of its applications for regular registration under section 12AB(1)(b)(ii) and approval under section 80G of the Income Tax Act by the CIT (Exemption). The foundation argued that the CIT (Exemption) did not consider certain details of expenses incurred for charitable activities during the financial year 2021-22, which were crucial for the approval of their applications. The Tribunal found merit in the appellant's request for a re-evaluation of the submitted documents and directed the CIT (Exemption) to conduct a de novo adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714620 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: C. H. NANIWADEKAR
• Keywords: Set aside; Reasonable cause

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS.ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.239 and 240/PUN/2025 Maadhav Narso Sarawadekar Foundation, 1116, Sadashiv Peth, Gambhirs Classes, Pune 411030, Maharashtra PAN: AAOCM5649L Vs. CIT (Exemption), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned two appeals at the instance of appellant are against the rejection of applications for regular registration u/s.12AB(1)(b)(ii) and approval u/s.80G of the Act respectively framed by ld.CIT(Exemption) dated 13.11.2024. 2. At the outset, Ld. Counsel for the appellant submitted that certain details of expenses incurred by the appellant for carrying out charitable activities were eventhough filed before ld.CIT(E) but seems to have not been considered while rejecting the appellant’s application for regular registration u/s.12A(1)(ac)(iii) of the Act. He therefore prayed that necessary direction may be given to ld.CITE) as all these details have been again filed in the paper book running into 135 pages for examination and decide the fate of appellant’s application Appellant by : Shri C. H. Naniwadekar Respondent by : Shri Amol Khairnar Date of hearing : 22.07.2025 Date of pronouncement : 04.08.2025 Printed from counselvise.com ITA No.239 and 240/PUN/2025 Maadhav Narso Sarawadekar Foundation 2 for regular registration. Ld. Departmental Representative did not object to the above request. 3. We have heard the rival contentions and perused the record placed before us. We observe that the appellant is a Non-profit company incorporated on 04.05.2021 with the primary object of extending the financial help to the students studying in 5th standard till Graduation as an educational assistance along with the enhancement of mental and emotional health of women. With these charitable objects appearing in the Memorandum of Association, the appellant filed application for registration u/s.12A(1)(ac)(iii) on Form 10AB on 30.05.2024. Various details as called for by ld.CIT(E) were submitted. However, ld.CITE) has observed in the impugned order that appellant trust has not shown any expenses on charitable activities during F.Y. 2021-22. Based on this observation, the application filed on Form 10AB has been rejected and provisional registration granted u/s.12A(1)(ac)(vi) has also been cancelled. 4. Before us, Ld. Counsel for the appellant referred to the paper book running into 135 pages and submitted that expenses have been incurred during F.Y. 2021-22 and all these details along with copies of invoices have also been furnished. He submitted that it seems that ld.CIT(E) has not considered these details as well as the charitable activities carried out by the appellant. Considering the request made by ld. Counsel for the appellant, without dwelling into merits of the issues, we in the larger interest of justice, deem it proper to restore the issues raised to the file of ld.CIT(E) for denovo adjudication. Needless to mention that ld.CIT(E) in the course of set-aside proceedings shall afford a reasonable opportunity of hearing to Printed from counselvise.com ITA No.239 and 240/PUN/2025 Maadhav Narso Sarawadekar Foundation 3 the appellant. Appellant is directed to update latest email id and contact detail on ITBA portal. Appellant is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and the effective grounds of appeal raised by the appellant are allowed for statistical purposes. 5. Since we have remanded the issue of grant of regular registration to the file of ld.CIT(E) for denovo adjudication, therefore, in the interest of justice, the issue of grant of approval u/s.80G(5) is also remitted to the file of ld.CIT(E), being consequential in nature. 6. In the result, both the appeals filed by the appellant are allowed for statistical purposes. Order pronounced on this 04th day of August, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 04th August, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “A” ब\u0014च, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "