PARIJAT FOUNDATION,PUNE V. CIT EXEMPTION, PUNE

ITA 2497/PUN/2024

AI Insights

The case involves two appeals by Parijat Foundation against the orders of the CIT, Exemption, Pune, which rejected the foundation's applications for registration under section 12A(1)(ac) and for approval under section 80G(5) of the Income Tax Act. The foundation argued that the CIT did not provide sufficient opportunity to respond to the notices issued, particularly the last notice which was allegedly missed. The Tribunal found that the foundation had complied with initial notices and deemed it just to remand the case for a fresh decision, emphasizing the need for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24658 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND DESAI
• Assessee Lawyers: A. N. KOTHARY
• Keywords: Set aside
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.2497 & 2516/PUN/2024 Parijat Foundation, Pushpa Kamal Building, S.No.245/104, Prabhat Road, Lane-3, Deccan Gymkhana, Pune- 411004. PAN : AADTP4917G Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the order dated 22.10.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act filed on 15.05.2024 and order dated 21.10.2024 passed by Ld. CIT, Exemption, Pune denying the application for approval in Form Assessee by : Shri A. N. Kothary Revenue by : Shri Arvind Desai Date of hearing : 15.01.2025 Date of pronouncement : 28.01.2025 ITA Nos.2497 & 2516/PUN/2024 2 No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act filed on 16.05.2024. ITA No.2497/PUN/2024 : 2. The appellant has raised the following grounds of appeal :- “On the facts and in the circumstances of the case the learned Commissioner of Income Tax Exemption Pune has erred in: a. Rejecting the application filed by the assessee in Form No.10AB under clause (iii) of section 12A (1) (ac) of the Income Tax Act, 1961 and cancelling provisional registration granted on 24.09.2021 under section 12AB read with section 12A (1) (ac)(vi) of the Income Tax Act, 1961 without giving sufficient opportunity to assessee to file information as required by the said Commissioner as per Notice dated 09.10.2024. The order being bad in law the same be set aside and the Commissioner of Income Tax Exemption be directed to grant registration. b. Not considering the fact that the assessee is a Charitable Trust carrying general charity and not any specific charitable activity the details of which were submitted. It is prayed that the Commissioner of Income Tax Exemption be directed to consider charitable nature of assessee’s activities and approve registration of the Trust under clause (iii) of section 12A(1) (ac) of the Income Tax Act, 1961. The appellant named above craves leave to add, to alter, to amend and modify grounds of appeal, if and when required.” 3. Facts of the case, in brief, are, that the assessee filed application for registration in Form No.10AB under clause (iii) of section 12(1)(ac) of the IT Act on 15.05.2024. With a view to verify the genuineness of activities of the assessee and compliance ITA Nos.2497 & 2516/PUN/2024 3 to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 05.07.2024 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. On verification of said information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies in the information furnished by the assessee and issued another notice on 09.10.2024. However, the assessee could not reply to the said notice and Ld. CIT, Exemption, Pune in the absence of any reply, rejected the application for registration and also cancelled the provisional registration granted to the assessee on 24.09.2021 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the IT Act. It 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 Ld. CIT, Exemption, Pune has not provided proper opportunity to the assessee, & therefore the order is not justified. It was further submitted that somehow the last notice was missed by the assessee and the reply could not be filed to the above said ITA Nos.2497 & 2516/PUN/2024 4 notice. Accordingly, it was prayed before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to provide one opportunity to submit the documents in support of application for registration. 5. Ld. DR appearing from the side of the Revenue placed heavy reliance on the orders passed by the subordinate authorities and requested to confirm the same. 6. We have heard Ld. Counsels from both the sides and perused the material available on record. We find that admittedly the assessee made compliance to the initial notices issued by the Ld. CIT, Exemption, Pune. It is the sole contention of the assessee that only the last notice could not be complied by the assessee and it was the prayer of Ld. AR that one more opportunity may kindly be granted to the assessee to explain his case. Considering the totality of the facts of the case and in the interest of justice without going into the merits of the case, we set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the application for registration afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the ITA Nos.2497 & 2516/PUN/2024 5 notices issued by Ld. CIT, Exemption, Pune and produce requisite documents/information in support of the application for registration, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee are partly allowed. 7. In the result, the appeal filed by the assessee in ITA No.2497/PUN/2024 is allowed for statistical purposes. ITA No.2516/PUN/2024 : 8. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(iii) to the file of Ld. CIT, Exemption, Pune for de novo adjudication, therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s 80G(5) as well to the file of Ld. CIT, Exemption, Pune being consequential, for de novo adjudication. 9. In the result, the appeal filed by the assessee in ITA No.2516/PUN/2024 is allowed for statistical purposes. ITA Nos.2497 & 2516/PUN/2024 6 10. To sum up, both the above captioned appeals filed by the assessee are allowed for statistical purpose. Order pronounced on this 28th day of January, 2025. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 28th January, 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, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "