MARATHWADA GRAMIN VIKAS SANSTHA,AURANGABAD V. CIT EXEMPTION, PUNE

ITA 2632/PUN/2024

AI Insights

The case involves Marathwada Gramin Vikas Sanstha, an organization registered under the Bombay Public Trust Act, 1950, which sought registration under section 80G of the IT Act. Initially, the CIT, Exemption, Pune rejected their application due to non-compliance with the required conditions and previous rejection of their application under section 12AB. However, the assessee argued that the rejection was based on a misunderstanding caused by a technical glitch in the registration forms, which were incorrectly labeled as provisional. The Tribunal found merit in the assessee's arguments, particularly referencing a CBDT Circular that acknowledged these technical errors, and thus remanded the case for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714252 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2025
• 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: SHUBHAM N. RATHI VIRTUAL
• Section: 11; 12AA; 12A; 12; 80G

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.2632/PUN/2024 Marathwada Gramin Vikas Sanstha, At Post Karanjgaon, Nagpur-Mumbai Highway, Tal. Vaijapur, Dist. Aurangabad- 423703. PAN : AABTM2715M Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 11.03.2023 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 80G of the IT Act. 2. There is delay in filing of the present appeal. We are satisfied with the reasons mentioned in the affidavit for condonation that the applicant was prevented by sufficient cause for not filing the appeal within the prescribed time limit. After hearing Ld. DR, we condone the delay and proceed to adjudicate the appeal. Assessee by : Shri Shubham N. Rathi (Virtual) Revenue by : Shri Amol Khairnar Date of hearing : 05.08.2025 Date of pronouncement : 07.08.2025 Printed from counselvise.com ITA No.2632/PUN/2024 2 3. Facts of the case, in brief, are, that the assessee filed its application for registration in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act on 30.09.2022. With a view to verify the genuineness of activities of the assessee and fulfillment of conditions laid down in clauses (i) to (v) of section 80G(5) of the IT Act, a notice was issued through ITBA portal on 29.12.2022 requesting the assessee to upload certain information/clarification on or before 13.01.2023. The assessee did not comply to this notice. Another notice was issued on 29.01.2023 to furnish desired information & the assessee was specifically asked to show cause why the application for approval should not be rejected. Since the assessee did not comply to this notice and has not furnished any explanation in reply to the above notice, Ld. CIT, Exemption, Pune was of the opinion that the condition (i) to (v) of section 80G(5) of the IT Act is not fulfilled & it was also observed that the application of the assessee for registration u/s 12AB of the IT Act has been rejected on 21.01.2023 hence the condition under clause (i) of section 80G(5) has also not fulfilled in this case, accordingly the application filed by the assessee was rejected and the provisional approval granted on 28.05.2021 under clause (vi) to first proviso to section 80G(5) of the IT Act was also cancelled. It Printed from counselvise.com ITA No.2632/PUN/2024 3 is this 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 the order passed by Ld. CIT, Exemption, Pune is not justified. It is submitted that the assessee is duly registered under the Bombay Public Trust Act, 1950 since 27.02.1996 and was also having registration u/s 12AA and also u/s 80G of the IT Act since 29.06.2009. The assessee has applied for regular registration u/s 12A(1)(ac)(i) of the IT Act on 26.04.2021 and also applied for regular approval u/s 80G of the IT Act respectively under new regime. Accordingly, both the above applications of the assessee were allowed and regular registration under clause (i) of section 12A(1)(ac) of the IT Act was granted to the assessee. Similarly, the regular approval under clause (i) of first proviso to section 80G(5) of the IT Act was also granted for five years. However, due to technical glitch in Form 10AC the heading was provided as “order for provisional registration”. Similarly, the certificate of approval u/s 80G(5) of the IT Act due to technical glitch the heading was provided as “order for provisional approval”. Since according to these two certificates, prima-facie it appears that they were issued as provisional, the assessee in advertently applied for final registration Printed from counselvise.com ITA No.2632/PUN/2024 4 u/s 12A(1)(ac) and final approval u/s 80G(5) of the IT Act respectively. Subsequently, CBDT vide Circular No.11/2022 dated 03.06.2022 clarified that due to technical glitches Form No.10AC issued during financial year 2021-22 in the heading it was wrongly mentioned as “order for provisional registration” or “order for provisional approval” instead of “order for registration” or order for approval”. Accordingly, Ld. AR contended that the assessee was not required to apply again for registration or for approval. However, Ld. AR submitted that all these facts could not be submitted before Ld. CIT, Exemption, Pune and since the assessee remained absent before Ld. CIT, Exemption, Pune, the application for approval got rejected. Accordingly, Ld. AR requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune, involving the issue of registration u/s 80G(5) of the IT Act & requested to remand the matter back to him with a direction to decide the application for registration u/s 80G of the IT Act afresh. 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. Printed from counselvise.com ITA No.2632/PUN/2024 5 6. In this regard, we find that the application for approval u/s 80G(5) of the IT Act was rejected for non-compliance form the side of the assessee. However, in the light of Circular No.11/2022 dated 03.06.2022 issued by CBDT, we also find force in the above arguments of the counsel of the assessee that due to technical glitch the order for registration and order for approval was treated as order for provisional registration and order for provisional approval. It was also the contention of Ld. AR that the fact of registration u/s 12A was also acknowledged by the Assessing Officer in the assessment order dated 23.12.2024 for assessment year 2023-24 wherein the Assessing Officer referred the above CBDT Circular and accepted that the assessee is duly registered u/s 12A of the IT Act and accordingly the benefit of section 11 and 12 of the IT Act was allowed to the assessee. It is the sole contention of Ld. Counsel of the assessee that all these facts could not be submitted before Ld. CIT, Exemption, Pune, therefore the application for approval got rejected. 7. Considering the totality of the facts of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the issue afresh after considering the submissions of the assessee in Printed from counselvise.com ITA No.2632/PUN/2024 6 view of our above discussion and as per fact and law after providing reasonable opportunity of hearing to the assessee. Thus, the grounds of appeal raised by the assessee are partly allowed. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 07th day of August, 2025. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 07th August, 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. Printed from counselvise.com "