ROTARY E CLUB OF PUNE DIAMOND CHARITY TRUST,PUNE V. CIT EXEMPTION, PUNE

ITA 307/PUN/2025

AI Insights

The case involves the Rotary E Club of Pune Diamond Charity Trust appealing against the decision of the CIT(Exemption), Pune, which rejected their application for permanent registration under section 12A and approval under section 80G of the Income Tax Act. The Tribunal found that the assessee was not given a fair opportunity to comply with the requirements for permanent registration and decided to restore the matter to the CIT(Exemption) for a fresh decision, emphasizing the need to uphold the principles of natural justice and the welfare-oriented intent of the Income Tax Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 36217 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESHARI
• Assessee Lawyers: ABHAY SHASTRI
• Keywords: Set aside; Principle of natural justice; Charitable institution
• Section: 12AA; 12A; 80G

Judgement Text

"आयकर अपीलीय अधिकरण \"बी\" न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL \"B\" BENCH, PUNE BEFORE Dr. MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.307 & 308/PUN/2025 धििाारण वषा / Assessment Year: NA Rotary E Club of Pune Diamond Charity Trust, 1298 Badve Autocoms Pvt. Ltd., A-3 MIDC, Mahalunge, Chakan, Khed- Maharashtra PAN-AADTR1615H Vs CIT(Exemption), Pune Appellant Respondent Assessee by : Shri Abhay Shastri Revenue by : Shri Ajay Kumar Keshari- CIT Date of hearing : 02.04.2025 Date of pronouncement : 04.04.2025 आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This appeal at the instance of the assessee is directed against the order of Ld. CIT(E) dated 13.12.2024 u/s 12AA and 80G of the Income Tax Act. 2. The Assessee has raised following grounds of appeal in ITA No.307/PUN/2025:- 1. The Leamed CIT(E) erred in rejecting the application under Section 12A solely on limitation grounds, disregarding the merits of the case. 2. The Leamed CIT(E) failed to provide adequate opportunity for the appellant to present evidence demonstrating the genuineness of charitable activities and compliance with Section 12A provisions violating the principles of natural justice. 3. The Learned CIT(E) disregarded the welfare-oriented intent of the Income Tax Act, 1961, and the purpose of Section 12A, which is to promote charitable activities benefiting society. 2 ITA No.307 & 308/PUN/2025 4. The Learned CIT(E)'s decision conflicts with the Directive Principles of State Policy within the Constitution of India. These principles highlight the legislative intent to support charitable trusts for the public good, 5. The above grounds of appeal may kindly be allowed to be amended, altered, modified etc in the interest of natural justice. 3. At the outset Ld. Counsel for the assessee submitted that the application for permanent registration u/s 12A(1)(ac) of the Act was filed on Form No. 10AB on 13.06.2024. However for non-compliance and also for little time given by Ld. CIT(E), the assessee’s application has been rejected and even the provisional registration granted on 21.03.2023 has also been cancelled. The only prayer made is to afford one more opportunity to which Ld. DR was fair enough in not objecting. 4. We have heard rival contentions and perused the record placed before us. Admittedly the assessee did not get fair opportunity to make compliance to the details called for Ld. CIT(A) with regard to the application for permanent registration u/s 12A(1)(ac)(3) of the Act. Considering the facts of the case and also in larger interest of justice we restore the issue on merits to the file of Ld. CIT(E) for afresh adjudication and to decide the application of the assessee filed on Form No. 10AB dated 30.06.2024 for permanent registration u/s 12A. Thus the impugned order is set aside and the provisional registration granted to the assessee on 21.01.2023 is restored till Ld. CIT(E) adjudicates the issue of permanent registration afresh in light of direction given above. Grounds of appeal raised in ITA No. 307/PUN/2025 is allowed for statistical purposes. 5. So far as ITA No. 308/2025 is concerned the same relates to the application for provision u/s 80G of the Act. Since we have restored the issue of registration u/s 12A of the Act to the Ld. CIT(E), therefore the issue regarding approval u/s 80G(5) of the Act also deserves to be set aside to the file of Ld. CIT(E) for 3 ITA No.307 & 308/PUN/2025 afresh adjudication. Needless to mention proper opportunity shall be granted to the assessee. Grounds of appeal raised in ITA No. 308/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 04th day of April, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ Pune; दििांक / Dated: 04th April, 2025. Neeta आिेश की प्रधिधलधप अग्रेधषि / 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, \"बी\" बेंच, पुणे / DR, ITAT, \"B\" Bench, Pune. 5. गार्ा फाइल / Guard File. आिेशािुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune. "