NIRANTAR SADHANA FOUNDATION,PUNE V. CIT EXEMPTION , PUNE

ITA 590/PUN/2025

AI Insights

The case involves Nirantar Sadhana Foundation appealing against the decision of the Commissioner of Income Tax (Exemption), Pune, which rejected their application for registration/renewal under section 80G of the Income Tax Act, 1961. The CIT (Exemption) had initially rejected the application due to non-compliance with the required documentation and discrepancies noted in the activities of the trust. The Tribunal found that the assessee was not given adequate opportunity to respond to the second notice due to an internal mistake and thus restored the matter to the CIT (Exemption) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711534 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2025
• 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: ABHAY A. AVCHAT
• Keywords: Set aside; Opportunity of being heard; Corroborative evidences; 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 No.590/PUN/2025 Nirantar Sadhana Foundation, H 27, Gurukrupa Housing Society, Mhada Colony, Pimpri, Pune-411018 PAN : AACTN7284R Vs. CIT Exemption, Pune अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee by : Shri Abhay A. Avchat Department by : Shri Amol Khairnar Date of hearing : 03-07-2025 Date of Pronouncement : 25-07-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : The appeal filed by the assessee is directed against the order dated 23.12.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”] whereby he rejected the application of the assessee filed before him in Form No. 10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 (the “Act”) on 13.06.2024. 2. The assessee has raised the following grounds of appeal : “On facts and circumstances and in law, 1. The learned CIT (Exemption), Pune has erred in rejecting application for registration /renewal submitted by Assessee charitable organisation by passing order under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961, dated December 23, 2024. 2. Without considering the facts and circumstances of the case and provisions of law, the Id. CIT Exemption has erred in rejecting Assessee's application for registration /renewal. 3. The order of rejection has been passed without considering submission and explanation filed by the Assessee and thus suffers from infirmity. 4. The Order passed by the CIT Exemption, Pune rejecting the Assessee's application is not in keeping with provisions of law, is bad in law and thus the same needs to be set aside. Printed from counselvise.com 2 ITA No.590/PUN/2025 5. The learned CIT erred in passing the order without affording adequate opportunity of being heard to the assessee. 6. The Ld. CIT, without considering the fact that activities are de facto carried out, he is not right in doubting the genuineness of activities of Trust and the compliance while passing the rejection order. 7. The Assessee prays for any other relief may be allowed to the Assessee under provisions of Income Tax Law. 8. The Assessee craves leave to add, alter, amend, modify and delete any of the grounds of appeal.” 3. The brief facts are that on receipt of the assessee’s application filed in Form No. 10AB under clause (iii) of first proviso to section 80G(5) of the Act along with annexures thereto, with a view to verify the genuineness of the activities of the assessee and fulfillment of the conditions laid down in clauses (i) to (v) of section 80G(5) of the Act, the Ld. CIT(E) issued notice on 15.07.2024 through ITBA portal requesting the assessee to upload certain information/clarification such as date of commencement of activity, date of expiry of provisional approval, details of any other law applicable for achievement of objectives and the proof of compliance of said law, proof of identity of main trustees/directors /trustees, year-wise list of donations received, note on activities carried out etc. The compliance was sought by 30.07.2024. On verification of the details submitted by the assessee, the Ld. CIT(E) noticed various discrepancies which were communicated vide issue of another notice dated 18.11.2024 duly served via e-portal/email, seeking compliance by 25.11.2024. The said discrepancies are reproduced below : “(i) You have furnished a general note on activities. Details like date and place of activity, details of beneficiaries, how they were identified, experts who rendered services, other relevant information has not been furnished. (ii) No supporting evidence viz bills/invoices of expenditure on each activity, photographs, cuttings etc has been furnished to prove the genuineness of activities. (iii) You have furnished only tax calculation sheet. As per the provisions of Rule 11AA(2)(g) of the Income Tax Rules, 1962, you were required to furnish copies of audited annual annual accounts for the F.Y. 2021-22 to 2023-24.\" 3.1 As the assessee failed to furnish any explanation to the discrepancies communicated to it vide above notice, the Ld. CIT(E) presumed that the assessee has nothing to say in the matter and consequently, having been unable to draw any satisfactory conclusion about the genuineness of the activities of the trust, the Ld. CIT(E) proceeded to pass the impugned order rejecting the assessee’s application and cancelling the approval granted u/s 80G(5) of the Act earlier by observing as under : “6. Considering the above facts discussed in the show notice and discrepancies noticed and also that the assessee has not complied with the provisions of sub- Printed from counselvise.com 3 ITA No.590/PUN/2025 clause (a) of clasue (ii) of second proviso to section 80G(5) of the Income Tax Act, 1961 as well as the provisions of Rule 11AA(2) of Income Tax Rules, 1962 in spite giving sufficient opportunities, the undersigned is unable to draw any satisfactory conclusion about the genuineness of activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G(5) of the Act. 7. Without prejudice to the above, it is noticed that the assessee's earlier application for approval u/s 80G(5)(iii) of the Act was rejected on 23/03/2024 due to its failure to furnish the details and supporting documentary evidences of its activities. Consequently, its provisional approval 80G(5) (iv) of the Act, obtained in form 10AC on 30/10/2021 was also cancelled. As such, the applicant had no valid provisional approval u/s 80G(5)(iv) of the Act at the time of filing the present application. Therefore, the condition (i) of section 80G(5) of the Income Tax Act, 1961 is also not fulfilled in this case. 8. In view of the above, the application filed by the assessee is hereby rejected. Needless to mention here that the provisional approval granted on 30/10/2021 under clause (iv) for first proviso to section 80G(5) of the Income Tax Act, 1961 has already been cancelled vide order dt. 23/03/2024.” 4. Aggrieved, the assessee is in appeal before the Tribunal and all the grounds of appeal relate thereto. 5. The Ld. Counsel for the assessee submitted that the assessee in response to the first notice has filed the various details. However, the assessee could not respond to the second notice issued by the Ld. CIT(E) on account of the mistake on the part of the employee of the trust. He submitted that the assessee has already been granted Section 12A registration. He further submitted that the impugned application of the assessee is not barred by limitation as it was filed within the extended due date i.e. 30th June, 2024 pursuant to CBDT Circular No. 7/2024 dated 25.04.2024. He accordingly submitted that in the interest of justice, the assessee should be given an opportunity to present and substantiate its case by filing the requisite details before the Ld. CIT(E). 6. The Ld. DR on the other hand strongly opposed the submissions made by the Ld. Counsel for the assessee. 7. We have heard the rival arguments made by both the sides and perused the material available on records. It is an admitted fact that the assessee did not respond to the second notice issued by the Ld. CIT(E) in which he has asked for certain details on account of some discrepancies found from the submissions made by the assessee earlier, for which he rejected the application filed by the assessee for grant of registration u/s 80G of the Act and also cancelled the provisional registration granted earlier. It is the submission of the Ld. Counsel for the assessee that due to the mistake on the part of the Printed from counselvise.com 4 ITA No.590/PUN/2025 employee of the trust in not communicating the notice, the assessee could not respond to the second notice. He has also brought to our notice that the assessee’s present application is not barred by limitation as it was filed on 13.06.2024 which is well within the extended time permissible under Circular No.7/2024 dated 25.04.2024. It is also his submission that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. CIT(E). 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 to his satisfaction 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 law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 25th July, 2025. Sd/- Sd/- (R.K. Panda) (Astha Chandra) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; दिन ांक / Dated : 25th July, 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 Printed from counselvise.com "