MAHARASHTRA GANDHI SMARAK NIDHI,PUNE V. CIT EXEMPTION , PUNE

ITA 2573/PUN/2024

AI Insights

The case involves two appeals by the Maharashtra Gandhi Smarak Nidhi against the orders of the CIT(Exemption), Pune, which rejected the applications for registration under section 12A and approval under section 80G of the Income Tax Act, 1961. The Tribunal found that the rejection was based on a hyper-technical ground of a wrong section code being used in the application form, which was not deemed fatal to the proceedings. The Tribunal noted that similar cases had been decided in favor of the assessee by various benches, and thus, in the interest of justice, the matter was remanded back to the CIT(Exemption) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705802 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Other Referred Cases: Raj Krishna Jain Charitable Trust (ITA no. 1553/Del/2024), Shree Swaminarayan Gadi Trust (2024) 162 taxmann.com 772 (Surat), U V Patel Foundation (ITA No. 1956/PUN/2024, dated 01.12.2024)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: SHARAD VAZE
• Keywords: Set aside; Charitable institution
• Section: 12A; 80G

Judgement Text

" आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI R.K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.2651 & 2573/PUN/2024 Maharashtra Gandhi Smarak Nidhi, Survey No. 36/2, Gandhi Bhavan, Kothrud, Pune-411038 PAN : AAATM4190R Vs. CIT(Exemption), Pune अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee by : Shri Sharad Vaze Department by : Shri Amol Khairnar Date of hearing : 18-06-2025 Date of Pronouncement : 30-06-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : Two appeals filed by the assessee are directed against the two separate order(s) both dated 13.09.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(Exemption)”] rejecting the application(s) for grant of registration u/s 12A and approval u/s 80G of the Income Tax Act, 1961 (the “Act”). For the sake of convenience, both these appeals were heard together and are being disposed of by this common order. 2. In ITA No.2651/PUN/2025, the assessee has challenged the order of the CIT(Exemption) in rejecting the application for registration u/s 12A of the Act while ITA No.2573/PUN/2025 relates to the order of the CIT(Exemption) in denying the approval u/s 80G of the Act. ITA No.2651/PUN/2025 3. Facts of the case in ITA No.2651/PUN/2025, in brief, are that the assessee filed an application in Form No.10AB on 14.10.2021 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 objects, a notice was issued through ITBA portal requesting the assessee to upload certain 2 ITA Nos.2651 & 2573/PUN/2024 information / clarification. In response to the same, the assessee filed certain details. The Ld. CIT(Exemption) while going through those details found certain discrepancies in the submissions filed by the assessee for which he issued another notice to clarify on those issues. However, in absence of any response from the side of the assessee trust, the Ld. CIT(Exemption) rejected the application filed by the assessee for grant of registration u/s 12A of the Act on the ground of selection of wrong section code by the assessee while filing the said application. 4. Aggrieved with such order of Ld. CIT(Exemption), the assessee is in appeal before the Tribunal by raising the following grounds: “1. On the basis of facts and in the circumstances of the case and as per law, the Commissioner of Income Tax, (Exemptions) Pune, is not justified in rejecting the regular registration even after the submission of information called from the assessee trust The rejection is only on the hyper-technical ground of wrong section code inadvertently / mistakenly used by the assessee in Form 10AB. The Commissioner of Income Tax (Exemptions) Pune be directed to consider Form 10AB filed on 27.03.2024 as having been filed under Clause (iii) of sec 12A(1)(ac), by condoning the delay /limitation, if any. 2. The appellant craves leave to add, alter, omit or substitute any of the grounds at the time of hearing of the appeal.” 5. The Ld. Counsel for the assessee at the outset submitted that the assessee inadvertently by mistake filed the application in Form 10AB for grant of registration u/s 12A of the Act under the wrong section code, on account of which the Ld. CIT (Exemption) has rejected the assessee’s application. He submitted that the mistake in wrong selection code in e-filing of Form 10AB is not fatal denying the registration of a charitable trust and placed reliance on the decision of Delhi Tribunal in the case of Raj Krishna Jain Charitable Trust (ITA no. 1553/Del/2024) and in the case of Shree Swaminarayan Gadi Trust (2024) 162 taxmann.com 772 (Surat) in support thereof. The Ld. AR also relied on the decision of the Pune Bench of the Tribunal in the case of U V Patel Foundation (ITA No. 1956/PUN/2024, dated 01.12.2024). 5.1 He further submitted that the non-compliance to the show cause notice (second notice) issued by the Ld. CIT(Exemption) was not intentional and has occurred due to certain unavoidable circumstances which were beyond the control of the assessee. He accordingly 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(Exemption). 3 ITA Nos.2651 & 2573/PUN/2024 6. The Ld. DR, on the other hand, supported the order of the Ld. CIT(Exemption). However, he had no objection if the matter is restored to the file of the Ld. CIT (Exemption) as per the request of the Ld. AR. 7. We have heard the heard the Ld. Representatives of the parties, perused the order of the Ld. CIT(Exemption) and the paper book filed by the Ld. AR on behalf of the assessee as well as the judicial precedents relied upon by the Ld. AR. We find that the Ld. CIT(Exemption) issued a show cause notice seeking clarification on wrong selection of code by the assessee while e-filing Form 10AB. However, in the absence of any reply furnished by the assessee to the said notice, the Ld. CIT(Exemption) rejected the registration application of the assessee. We find that this issue is no more res-integra and covered in favour of the assessee by catena of decisions of the various benches of the Tribunal involving similar set of facts as that of the assessee in the present appeal. In our view, wrong selection of section code/clause would not disentitle the assessee to its rightful claim and cannot be treated as fatal to the proceedings initiated after the filing of the application. Support may be drawn from the decision of the Pune Bench of the Tribunal in the case U V Patel Foundation (supra) wherein the order of the Ld. CIT(Exemption) was set aside with a direction to decide the application afresh by treating the same as filed under the correct section. It is the submission of the Ld. Counsel for the assessee that given an opportunity the assessee is in a position to substantiate its case by filing all the relevant details before the Ld. CIT(Exemption). Considering the totality of the facts of the case and in the interest of justice, we deem it fit, to grant an opportunity to the assessee to substantiate its case before the Ld. CIT(Exemption) by setting aside the matter to the file of Ld. CIT(Exemption). We, therefore, set aside the impugned order of the Ld. CIT(Exemption) who shall give an opportunity to the assessee to file the correct application/ treat the original application as filed under the correct section and then decide the case on merits denovo as per facts and law, after granting one final opportunity of hearing to the assessee. The assessee is also directed to remain vigilant in respect of the notice(s) of hearing issued by Ld. CIT(Exemption) and submit the details/ documents as may be required/called upon by the Ld. CIT(Exemption) on the appointed date without seeking any adjournment under any pretext, failing which the Ld. 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. 4 ITA Nos.2651 & 2573/PUN/2024 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. ITA No. 2573/PUN/2024 9. Both the sides are unanimous in stating that the facts of the case in ITA No. 2573/PUN/2024 are similar to the facts in ITA No. 2651/PUN/2024 narrated above. It is the submission of the Ld. AR that since the Ld. CIT(Exemption) has rejected the grant of registration u/s 12A of the Act and cancelled the provisional registration granted earlier, he refused to grant approval u/s 80G of the Act. Since the grant of approval under section 80G is consequential to the registration granted under section 12A of the Act and we have by our above order of even date, set aside the issue of grant of registration under section 12A of the Act for denovo consideration of the Ld. CIT(Exemption), we set aside this appeal too to the file of the Ld. CIT(Exemption) in the same terms. Accordingly, the grounds of appeal raised by the assessee in ITA No. 2573/PUN/2024 are hereby allowed for statistical purposes. 10. To sum up, both the appeals of the assessee in ITA Nos. 2651 & 2573/PUN/2024 are treated as allowed for statistical purposes. Order pronounced in the open court on 30th June, 2025. Sd/- Sd/- (R.K. Panda) (Astha Chandra) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; दिन ांक / Dated : 30th June, 2025. रदि आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1. अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. दिभ गीय प्रदिदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 5. ग र्ड फ़ इल / Guard File. //सत्य दपि प्रदि// True Copy// आिेश नुस र / BY ORDER, िररष्ठ दनजी सदचि / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune "