NEW LIFE FOUNDATION,THANE V. CIT(EXEMPTION), PUNE, PUNE

ITA 2512/PUN/2025

AI Insights

The case involves New Life Foundation, which appealed against the decision of the CIT, Exemption, Pune, rejecting their application for registration under section 12AB of the Income Tax Act. The CIT, Exemption, Pune had initially issued notices to the assessee to verify the genuineness of their activities and compliance with legal requirements. Despite the assessee providing the requested information, the CIT found discrepancies, particularly concerning the absence of permission from the Charity Commissioner to raise a loan. The Tribunal, considering the circumstances and in the interest of justice, decided to give the assessee another opportunity to comply with the requirements and provide necessary documentation.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838178 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 29-10-2025
• Laws Referred To: Income Tax Act, Maharashtra Public Trust Act, 1950
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH KUMAR SINGH
• Assessee Lawyers: B. S. RAJPUROHIT
• Section: 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2512/PUN/2025 New Life Foundation, 16/A, Govind Vihar Building, Vasai, Virar West, Thane- 401301. PAN : AADTN0331Q Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 12.09.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act. 2. Facts of the case, in brief, are that the assessee has filed application for registration in Form No.10AB under sub-clause (ii) of clause (ac) of sub-section (1) of section 12A of the IT Act on 18.03.2025. With a view to verify the genuineness of 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 Assessee by : Shri B. S. Rajpurohit Revenue by : Shri Manish Kumar Singh Date of hearing : 04.02.2026 Date of pronouncement : 19.02.2026 Printed from counselvise.com ITA No.2512/PUN/2025 2 the purpose of achieving its objects, a notice was issued by Ld, CIT, Exemption, Pune through ITBA portal on 01.05.2025 requesting the assessee to upload certain information/clarification. In reply to the said notice, the desired information was furnished by the assessee. On verification of the information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies, therefore, issued another notice on 16.07.2025 and asked the assessee to furnish various other details. The assessee furnished its response on 27.08.2025. However, not being satisfied with the above reply, Ld. CIT, Exemption, Pune rejected the application filed by the assessee by observing as under :- “7. The assessee contention is duly considered however, the same is not acceptable as it has not submitted a copy permission from Charity Commissioner for raising loan of Rs. 3,97,000/- from others as appearing in the balance sheet as on 31.03.2023. From the reply, it is revealed that the trust has not obtained permission under section 36A of the Maharashtra Public Trust Act, 1950 from the Charity Commissioner. Taking loans to meet the funds requirement cannot be accepted as an excuse for non-compliance as sec. 36A(3A) provides that \"notwithstanding anything contained in sub-section (3), in exceptional and extraordinary situations where the absence of previous sanction contemplated under sub-section (3) results in hardship to the trust, beneficiary or bonafide third party, the Charity Commissioner may grant ex-post- facto sanction to borrow moneys from any nationalized bank or the Scheduled Bank, by the trustees.].\" Thus, the trust could have obtain ex-post facto permission from the Charity Commissioner. It, however, failed to do so. 8. Considering the above facts discussed in the show notice and discrepancies noticed and also that the assessee has not complied with the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961 as well as the provisions of Rule 17A(2) of Income Tax Rules, 1962 in spite giving sufficient opportunities, the undersigned is unable to draw any satisfactory conclusion about the compliance of requirements of any other law for the time being in force by the assessee as are material for the purpose of achieving its objects. Printed from counselvise.com ITA No.2512/PUN/2025 3 9. In view of the above, the application filed by the assessee is rejected.” 3. It is the above order against which the assessee is in appeal before this Tribunal. 4. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper book furnished by the assessee. In this regard, we find that the assessee has already filed details regarding temporary loan before Ld. CIT, Exemption, Pune, however not being satisfied with the submissions, Ld. CIT, Exemption, Pune was of the view that the assessee has not complied with the provisions of section 12AB of the IT Act despite providing sufficient opportunities and therefore the application for registration u/s 12A of the IT Act was rejected. In this regard, it was the contention and prayer of Ld. Counsel of the assessee that if one last opportunity is provided to the assessee, he is in a position to furnish all the relevant desired information before Ld. CIT, Exemption, Pune. 5. Considering the totality of the facts of the case and in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and restore the matter back to his file with a direction to decide the application for registration afresh as per fact Printed from counselvise.com ITA No.2512/PUN/2025 4 and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT, Exemption, Pune in this regard and to produce relevant documents/evidences, if any, in support of application for registration u/s 12A of the IT Act without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 19th day of February, 2026. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 19th February, 2026. 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 // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "