MULSHI DHARAN VIBHAG SHIKSHAN MANDAL,PUNE V. CIT EXEMPTION, PUNE, PUNE

ITA 2583/PUN/2024

AI Insights

The case involves Mulshi Dharan Vibhag Shikshan Mandal, the appellant, who appealed against the decision of the Commissioner of Income Tax (Exemption), Pune, which rejected their application for approval under section 80G of the Income Tax Act, 1961. The rejection was primarily due to the assessee's failure to respond to multiple notices requesting information to verify the genuineness of their charitable activities. The Tribunal noted the assessee's non-compliance but acknowledged the possibility of the assessee substantiating their case if given another opportunity, especially considering they had been granted registration under section 12A of the Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360905 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: PRAMOD S SHINGTE
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• 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 No.2583/PUN/2024 Mulshi Dharan Vibhag Shikshan Mandal At Post Male, Tal Mulashi, Dist Pune – 412108 Vs. The CIT (Exemption), Pune PAN: AACTM6856C (Appellant) (Respondent) Assessee by : Shri Pramod S Shingte Department by : Shri Amol Khairnar CIT-DR Date of hearing : 06-05-2025 Date of pronouncement : 19-05-2025 O R D E R PER ASTHA CHANDRA, JM: This appeal filed by the assessee is directed against the order dated 24.10.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”] rejecting the application for approval u/s 80G of the Income Tax Act, 1961 (the “Act”). 2. Facts of the case in brief, are that the assessee filed an application in Form No.10AB on 28.06.2024 for approval under clause (iii) of first proviso to sub- section (5) of section 80G of the Act. With a view to verify the genuineness of the activities of the assessee and fulfillment of conditions laid down in clause (i) to (v) of section 80G(5) of the Act, a notice was issued through ITBA portal on 29.07.2024 requesting the assessee to upload certain information / clarification 2 ITA No.2583/PUN/2024 listed therein by 13.08.2024, followed by another notice dated 05.10.2024 seeking compliance by 14.10.2024. Since there was no response from the side of the assessee despite number of opportunities granted, the Ld. CIT(E) rejected the application for grant of approval u/s 80G of the Act and also cancelled the provisional registration granted earlier by observing as under: “4. Since the assessee did not furnish compliance to the said notice, another opportunity was given to the assessee vide notice dated 05/10/2024 requesting it to show cause as to why the application should not be rejected and why the approval granted under section 80G(5) of the Income Tax Act, 1961 should not be cancelled. The assessee was requested to submit compliance by 14/10/2024. The assessee was also given opportunity of being heard vide the said notice. The notice was duly served on the assessee through e-portal and email. However, the assessee neither furnished compliance to the show cause notice nor availed the opportunity of being heard. 5. The information / details were called for under the provisions of sub-clause (a) of clause (ii) of second proviso to section 80G(5) 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 sub-clause (a) of clause (ii) of second proviso to section 80G(5) of the Income Tax Act, 1961 to verify the genuineness of activities of the trust or institution and fulfillment of conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act. 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 fulfillment of conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act. 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 sub-clause (a) of clause (ii) of second proviso to section 80G(5) of the Income Tax Act, 1961 and hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and fulfillment of conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act and has left no alternative but to reject the application. 3 ITA No.2583/PUN/2024 9. In view of the above, the application filed by the assessee is hereby rejected and the provisional approval dated 22/06/2022 under section 80G(5)(vi) read with clause (iv) of first proviso to section 80G(5) of the Act is hereby cancelled.” 3. Aggrieved with such order of Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds: 1. On the facts and in the circumstances of the case and in law Ld. CIT Exemption has erred in not granting registration u/s 80G(5)(vi) r.w.c (iv) of the IT Act, 1961 without appreciating the facts of the case. Your appellant prays for grant of such registration u/s 80G(5)(vi) r.w.c (iv) of the IT Act, 1961. 2. Your appellant prays for deletion of entire addition. Your appellant craves for to add, alter amend, modify, delete any or all grounds of appeal before or during the course of hearing in the interest of natural justice. 4. The Ld. AR at the outset submitted that due to non-compliance to the notice(s) issued by the Ld. CIT(E), he rejected the application for approval u/s 80G of the Act and also cancelled the provisional approval granted earlier. He submitted that non-compliance before the Ld. CIT(E) occurred due to certain unavoidable circumstances. He submitted that the assessee has already been granted registration under section 12A of the Act and a copy of section 12A registration certificate has been placed on record. He submitted that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. CIT(E). He accordingly submitted that in the interest of justice, the matter may be set aside to the file of the Ld. CIT(E) to decide the assessee’s application afresh after giving an opportunity of being heard to the assessee to present and substantiate its case. 4 ITA No.2583/PUN/2024 5. The Ld. DR, on the other hand, relied on the order of Ld. CIT(E) and submitted that the assessee failed to furnish the requisite details despite several opportunities granted, therefore, the Ld. CIT(E) was completely justified in rejecting the application of the assessee. 6. We have heard the Ld. Representatives of the parties and perused the order of the Ld. CIT(E). It is an admitted fact that despite sufficient opportunities granted by the Ld. CIT(E), the assessee did not respond to the notice(s) for which he rejected the application for grant of approval u/s 80G of the Act, the reasons of which have already been reproduced in the preceding paragraphs. It is the submission of the Ld. Counsel for the assessee that due to certain unavoidable circumstances, the requisite details could not be filed. It is also his submission that the assessee has been granted registration under section 12A of the Act which evidences the genuineness of the charitable activities being carried out by the assessee trust. He has therefore urged that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. 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 Ld. CIT(E) with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details and decide the issue as per fact and law. The assessee is also hereby directed to submit the details as called for by the Ld. CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the Ld. CIT(E) is at liberty to pass appropriate order as per 5 ITA No.2583/PUN/2024 law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 19th May, 2025. Sd/- Sd/- (R. K. PANDA) (ASTHA CHANDRA) VICE PRESIDENT JUDICIAL MEMBER पुणे Pune; दिन ांक Dated : 19th May, 2025 GCVSR 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 6 ITA No.2583/PUN/2024 S.No. Details Date Initials Designation 1 Draft dictated on 08.05.2025 Sr. PS/PS 2 Draft placed before author 09.05.2025 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 "