MADHAV GANDHE FOUNDATION,NAGPUR V. ITO WARD-1, EXEMP, NAGPUR, NAGPUR

ITA 582/NAG/2024

AI Insights

The case involves the Madhav Gandhe Foundation, a society engaged in charitable activities, which appealed against the order of the learned CIT(E), Pune, rejecting the provisional approval under section 80G(5) of the Income Tax Act, 1961. The foundation had initially received a provisional approval which was later cancelled due to non-fulfillment of the conditions under section 80G(5)(i) as the application for permanent registration under section 12AB was rejected. Subsequently, the foundation was granted registration under section 12AB(1), and attempted to reapply for approval under section 80G, which was denied by the portal. The Tribunal, considering the subsequent registration under section 12AB(1), decided to remit the matter back to the CIT(E) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471261 (ITAT-NAGPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANDIPKUMAR SALUNKE
• Assessee Lawyers: ABHAY AGRAWAL
• Keywords: Opportunity of being heard

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR “SMC” BENCH : NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER ITA.No.582/NAG./2024 [U/sec.80G of the Income Tax Act, 1961] Madhav Gandhe Foundation, 88-Farmland, RAMDASPETH – 440 010. Maharashtra. PAN AAETM7341Q vs. The Income Tax Officer, Ward-1(Exemption), BSNL RTTC Bldg., NAGPUR – 440 006. Maharashtra. (Appellant) (Respondent) For Assessee : Shri Abhay Agrawal, Advocate For Revenue : Shri Sandipkumar Salunke, CIT-DR Date of Hearing : 28.01.2025 Date of Pronouncement : 04.02.2025 ORDER PER V. DURGA RAO, J.M. : This appeal has been filed by the assessee against the order dated 22.05.2024, of the learned CIT(E), Pune, in rejecting the provisional approval granted u/sec.80G(5) of the Income Tax Act, 1961, [hereinafter in short “the Act”]. 2. At the outset, there is a delay of 115 days in filing the appeal before the Tribunal. I am satisfied with the condonation of delay affidavit and petition filed by the assessee and, therefore, 2 ITA.No.582/NAG./2024 condone the delay of 115 days in filing the appeal before the Tribunal and proceed to decide the appeal on merits. 2. Facts of the case, in brief, are that the assessee is a society engaged in charitable activities i.e., imparting education and is a non-profit making organization. The assessee made an application for approval in Form 10AB under clause (iii) of first proviso to sub- sec.(5) of Sec.80G of the Act. The learned CIT(E), in order to verify the genuineness of the activities of the assessee society, issued notice through ITBA portal on 14.03.2024 requesting the assessee to upload certain information/clarifications, which are the basic details required to ascertain the overall nature of the activities of the assessee society. In response to the said notice, the assessee society submitted certain documents along with the application. The learned CIT(E) noticed various discrepancies and issued another notice dated 02.05.2024. In response to the said notices, the assessee submitted that it had filed Form-10AB for the permanent registration u/sec.12AB(ii) on 26.04.2024 and requested to keep the proceedings u/sec.80G in abeyance till the proceedings u/sec.12AB(iii) are concluded. The learned CIT(E) noted that the application of assessee in Form No.10AB for registration u/sec.12AB filed under the 3 ITA.No.582/NAG./2024 provisions of sec.12A(1)(ac)(iii) of the Act has been rejected vide order dated 18.04.2024. Therefore, since the conditions of sec.80G(5)(i) are not fulfilled by the assessee society, the learned CIT(E) cancelled the provisional approval granted on 31.08.2021 under clause (iv) for first proviso to sec.80G(5) of the Act. 3. Aggrieved by the order of the learned CIT(E), the assessee society carried the matter in appeal before the Tribunal. 4. During the course of hearing, Learned Counsel for the Assessee submitted that the assessee society was granted registration u/sec.12AB(1) of the Act on 11.10.2024 by the learned CIT(E) and therefore, the assessee society tried to file fresh application u/sec.80G of the Act but the same was denied by the portal. He, accordingly, submitted that the since the assessee society granted registration u/sec.12AB(1), the application of the assessee society for approval u/sec.80G(5) may be sent back to the file of learned CIT(E) for afresh adjudication with a direction to provide adequate opportunity of being heard to the assessee to substantiate it’s case. 5. The Learned DR did not object to the factual position. 4 ITA.No.582/NAG./2024 6. I have heard the rival submissions of both the parties and perused the material on record. Prima facie, I find force in the arguments of the Learned Counsel for the Assessee to the effect that the assessee society had granted registration subsequently on 11.10.2024 u/sec.12AB(1) of the Act. In view of these facts and circumstances, I remit the issue pertains to grant of approval u/sec.80G(5) of the Act back to the file of learned CIT(E) for his afresh adjudication on merits, after providing adequate opportunity of being heard to the assessee. Accordingly, the appeal of the assessee is allowed for statistical purposes. 7. In the result, appeal of the assessee society is allowed for statistical purposes. Order pronounced in the open Court on 04.02.2025. Sd/- (V. DURGA RAO) JUDICIAL MEMBER Nagpur, Dated 04th February, 2025 VBP/- Copy to 1. The appellant 2. The respondent 3. The CIT(E), Pune. 4. The D.R. ITAT, Nagpur SMC-Bench, Nagpur 5. Guard File. //By Order// True Copy Sr. Private Secretary : ITAT : Nagpur Bench NAGPUR. "