MYSTIC BAMBOO FOUNDATION,PUNE V. CIT EXEMPTION, PUNE, PUNE

ITA 237/PUN/2025

AI Insights

The case involves Mystic Bamboo Foundation, a not-for-profit organization, which appealed against the orders of the Commissioner of Income Tax (Exemption), Pune, rejecting their applications for permanent registration under section 12A and approval under section 80G(5) of the Income Tax Act, 1961. The foundation argued that they were not given a sufficient opportunity to present their documents, which they claimed was against the principles of natural justice. The CIT(E) had rejected their applications due to non-submission of required details, which the assessee attributed to a technical error on their server. The Tribunal found merit in the assessee's request for another opportunity to submit the necessary details and remitted the matter back to the CIT(E).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361058 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2025
• 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: DHIRAJ S DANDGAVAL
• Keywords: Reasonable cause; Principle of natural justice
• Section: 12A

Judgement Text

"आयकर अपीलीय अधिकरण \"ए\" न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE Dr. MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.237&238/PUN/2025 धििाारण वर्ा / Assessment Year: NA Mystic Bamboo Foundation, Plot 88/1/1, Flat No. 201, Veerbhadra Nagar, Baner- 411045 Maharashtra PAN-AAQCM8899L Vs CIT Exemption, Pune Appellant Respondent Assessee by : Shri Dhiraj S Dandgaval Revenue by : Shri Amol Khairnar CIT DR Date of hearing : 15.05.2025 Date of pronouncement : 21.05.2025 आदेश/ORDER PER DR.MANISH BORAD, ACCOUNTANT MEMBER : These appeals at the instance of assessee are directed against the order u/s 12AB of the Act dated 10.12.2024 and u/s 80G(5) of the Income tax Act, 1961 dated 10.12.2024. 2. Assessee has raised following grounds of appeal:- 1. Whether on the facts and circumstances of the case and in law, the Hon'ble Commissioner of Income (Exemption), Pune has erred by not giving the appellant the sufficient opportunity to present the documents and clarify its stand which is against the Principle of Natural Justice. 2 ITA No.237&238/PUN/2025 2. Whether on the facts and circumstances of the case and in law, the Hon'ble Commissioner of Income (Exemption), Pune erred in rejecting the provisional registration granted u/s section 80G(5) of the Income Tax Act, 1961 and in rejecting the application for grant of registration/approval filed vide Form 10AB. 3. The assessee craves liberty to add, alter or amend any ground/s during the appellate proceedings in the interest of natural justice. 3. At the outset Ld. Counsel for the assessee referring to the written submissions filed at the time of hearing stated that certain details called for by Ld. CIT(E) could not be uploaded on the portal due to some technical error on the server. For such non submission of the required details Ld. CIT(E) has rejected both the applications filed for registration u/s 12A and u/s 80G(5) of the Act. He prayed for granting an opportunity to submit the necessary details before Ld. CIT(E) so that the issues on merit could be decided. Ld. DR did not object to the request made by Ld. Counsel for the assessee. 4. We have heard rival contentions and perused the record placed before us. In the written submissions it has been stated that the assessee is a Not for Profit organisation registered u/s 8 of the Companies Act, 2013. The primary objective of the assessee is to promote, develop and encourage the practice of music in all its forms, with a particular focus on playing of India Bamboo Flute (Bansuri). The assessee has been granted provisional registration u/s 12A of the Act on 28.02.2024. It has been claimed that the assessee has undertaken multiple programs to spread the knowledge about the activities of the assessee as well as information about Flute and other classical instruments. The assessee has thereafter applied for permanent registration u/s 12A of the Act and for approval u/s 80G(5) of the Act by filing separate applications on Form 10AB on 28.06.2024. Ld. CIT(E) called 3 ITA No.237&238/PUN/2025 for various details which are appearing in the impugned orders to which partial compliance was made. Remaining details which has been claimed by the assessee to be available for furnishing to the Ld. CIT(E) could not be furnished/uploaded on the portal as the tab to submit the response was inactive. Though the assessee immediately sent an e-mail on e-mail id given in the notice in this regard but could not stop the rejection of both the applications for registration u/s 12A and 80G(5) of the Act. 5. Under these given facts and circumstances and considering the request of Ld. Counsel for the assessee and the written submission filed before us and no objection being raised by Ld. DR, we in the larger interest of justice and being fair to both the parties remit the issue of permanent registration u/s 12A and approval u/s 80G(5) of the Act back to the file of Ld. CIT(E) for deciding the same in accordance with law after duly considering the details to be filed by the assessee. Needless to mention that Ld. CIT(E) shall provide sufficient opportunity of hearing to the assessee. The assessee is also requested to remain vigilant and not to take unnecessary adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised in both the appeals i.e. ITA No.237&238/PUN/2025 are allowed for statistical purposes. 6. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced on this 21st day of May, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER 4 ITA No.237&238/PUN/2025 पुणे/ Pune; दििांक / Dated: 21st May, 2025. Neeta आिेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to: 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. धवभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, \"ए\" बेंच, पुणे / DR, ITAT, \"A\" Bench, Pune. 5. गार्ा फाइल / Guard File. आिेशािुसार / BY ORDER, Senior Private Secretary आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune. "