RAOSAHEB MOHANLAL CHIMANLAL MANIYAR TRUST,INDIA V. COMMISSIONER OF INCOME TAX (EXEMPTION), INDIA

ITA 2597/PUN/2024

AI Insights

The case involves Raosaheb Mohanlal Chimanlal Maniyar, the appellant, who filed two appeals against the orders of the CIT (Exemption), Pune, which rejected the application for registration under section 12A and denied the claim of exemption under section 80G of the Income Tax Act, 1961 for the assessment year 2022-23. The CIT (Exemption) had initially issued notices to the appellant to verify the genuineness of the trust's activities and compliance with legal requirements, leading to the rejection of the applications based on perceived discrepancies and non-compliance. The Tribunal found that the CIT (Exemption) did not provide sufficient opportunity for the appellant to clarify the discrepancies, leading to the decision to restore the matter for re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 37790 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2025
• 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: AJAY KUMAR KESHARI
• Assessee Lawyers: MISS SMRUTI SABNIS
• Keywords: Additional evidence
• Section: 12A; 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.2596 & 2597/PUN/2024 Assessment year : 2022-23 Raosaheb Mohanlal Chimanlal Maniyar 1693, House No.182, Near Agriculture College, University Road, Shivaji Nagar, Pune – 411005 Vs. CIT (Exemption), Pune PAN: AABTR6061K (Appellant) (Respondent) Assessee by : Miss Smruti Sabnis Department by : Shri Ajay Kumar Keshari, CIT Date of hearing : 03-02-2025 Date of pronouncement : 05-02-2025 O R D E R PER R. K. PANDA, VP : The above two appeals filed by the assessee are directed against the separate orders dated 13.11.2024 of the CIT(Exemption), Pune rejecting the application for registration u/s 12A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and denying the claim of exemption u/s 80G of the Act respectively. 2. Facts of the case in brief, are that the assessee filed an application in Form No.10AB on 07.05.2024 for registration of the trust under clause (iii) of section u/s 12A(1)(ac) of the Act. With a view to verify the genuineness of the activities of the assessee and compliance to requirements of any other law for the time being in 2 ITA Nos.2596 & 2597/PUN/2024 force by the trust / institution as are material for the purpose of achieving its objects, a notice was issued through ITBA portal on 19.06.2024 requesting the assessee to upload certain information / clarification. On verification of the details submitted by the assessee, the CIT(Exemption) noted certain discrepancies for which he issued another notice asking the assessee to explain as to why the application should not be rejected and the provisional registration granted earlier u/s 12AB of the Act should not be cancelled. The assessee in response to the same furnished certain details. The CIT(Exemption) went through the various documents filed by the assessee and not being satisfied about the charitable nature and the genuineness of activities of the assessee and 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, rejected the application and also cancelled the provisional registration granted under u/s 12AB of the Act. 3. Aggrieved with such order of CIT(Exemption), the assessee is in appeal before the Tribunal by raising the following grounds: Based on the facts and circumstances of the case, the grounds of appeal of the appellant are as follows Ground 1. Learned CIT(Exemption) has erred in rejecting the application made under section 12A(1)(ac)(iii) of the Income Tax Act, 1961. Ground 2. Learned CIT(Exemption) has erred in not providing sufficient opportunity for the appellant to explain and submit the documentary evidence Ground 3. The appellant requests for the addition of additional evidence in order to support its case regarding various charitable activities 3 ITA Nos.2596 & 2597/PUN/2024 carried out by it and accordingly, submits that the activities carried out are genuine and the learned CIT (Exemption) has erred in rejecting the application for approval under clause (iii) of section 12A(1)(ac). Ground 4. The appellant craves leave to add, alter, vary, omit, amend, or delete the above grounds of appeal at any time before, or at the time of, hearing of the appeal, so as to enable the Hon'ble Income-tax Appellate Tribunal (Appeals) to decide this appeal according to law. 4. The Ld. Counsel for the assessee submitted that after the various documents were filed, the CIT(Exemption) without giving an opportunity to the assessee as to which documents require further clarification, passed the order. Therefore, in the interest of justice, the assessee should be given any opportunity to substantiate its case to the satisfaction of the CIT(Exemption). She accordingly submitted that the matter may be restored to the file of the CIT(Exemption) with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details. 5. The Ld. DR on the other hand heavily relied on the order of the CIT(Exemption). 6. After hearing both the sides, we find the assessee in response to the notice issued by the CIT(Exemption) filed certain details. We find the CIT(Exemption) was not satisfied with the various details filed by the assessee and rejected the application for grant of registration u/s 12A of the Act and also the provisional registration granted earlier on the ground that there were certain discrepancies and 4 ITA Nos.2596 & 2597/PUN/2024 the assessee could not satisfy him about the charitable nature and the genuineness of activities of the assessee trust and 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. It is the submission of the Ld. Counsel for the assessee that the CIT(Exemption) has not pointed out any specific discrepancy or any other requirement which would have satisfied him for granting registration u/s 12A of the Act. It is also her request that given an opportunity, the assessee is in a position to file the requisite details before the 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 CIT(Exemption) with a direction to grant one last 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 CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the CIT(Exemption) 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. ITA No.2597/PUN/2024 7. Since the issue relating to the registration u/s 12A of the Act has been restored to the file of the CIT(Exemption) for fresh adjudication, the issue relating to the grant of exemption u/s 80G is also restored to his file for fresh adjudication. 5 ITA Nos.2596 & 2597/PUN/2024 8. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open Court on 5th February, 2025. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 5th February, 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, ‘B’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune 6 ITA Nos.2596 & 2597/PUN/2024 S.No. Details Date Initials Designation 1 Draft dictated on 03.02.2025 Sr. PS/PS 2 Draft placed before author 03.02.2025 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 "