SACHIN MEMORIAL FOUNDATION,PUNE V. CIT EXEMPTION, PUNE

ITA 299/PUN/2025

AI Insights

The case involves Sachin Memorial Foundation, a charitable trust, appealing against the decision of the CIT(Exemptions), Pune, which rejected their application for registration under sections 12A and 80G of the Income Tax Act, 1961. The primary contention was the alleged failure of the CIT(Exemptions) to appreciate the foundation's objectives and activities, which qualify for tax exemptions. The Tribunal noted procedural shortcomings in the handling of the application, particularly the lack of adequate time provided to the assessee to respond to additional documentation requests. Consequently, the Tribunal allowed the appeal for statistical purposes and remanded the matter back to the CIT(E) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469575 (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, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR
• Assessee Lawyers: B. S. RAJPUROHIT
• Keywords: Condonation of delay; Reasonable cause; Principle of natural justice; Charitable institution
• Section: 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.299/PUN/2025 धििाारण वषा / Assessment Year: 2025-26 Sachin Memorial Foundation, Nagdeo Tower Pune Nasik Road, Bhosari, Pune City-411039 Maharashtra PAN-AAGTS4388D Vs CIT(E), Pune Appellant Respondent Assessee by : Shri B.S. Rajpurohit Revenue by : Shri Ajay Kumar Keshari- CIT Date of hearing : 01.04.2025 Date of pronouncement : 04.04.2025 आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The Present appeal at the instance of assessee is directed against the order of Ld. CIT(Exemption) dated 25.11.2024 2. Registry has informed that the present appeal is barred by limitation by 4 days. Application for condonation of delay has been filed and after hearing both the sides we find that the delay in filing the appeal was due to reasonable cause and not intentional or delebrately. We therefore condone the delay of 4 days and admit the appeal for adjudication. 2 ITA No.299/PUN/2025 3. The Assessee has raised following grounds of appeal:- 1. The CIT (Exemptions) erred in rejecting the application for registration under section 124/800 on the basis of non-submission of additional documents. 2. The appellant contends that the CIT (Exemptions) did not properly appreciate the objectives and activities of the appellant, which qualify for exemption under section 12A and 80G 3. The CIT (Exemptions) failed to consider that the appellant has been carrying out genuine charitable activities as defined under the Income Tax Act, 1961, and is entitled to registration under both sections. 4. The CIT (Exemptions) failed to provide the appellant with an adequate and reasonable opportunity to respond to the additional issues raised in the proceedings. The appellant was not given sufficient time to address the additional points raised, thereby denying the right to a fair hearing. 5. The CIT (Exemptions) has failed to appreciate the submission and documentation provided by the appellant during the proceedings, and there has been a failure of natural justice in not considering the same adequately. 6. The appellant was provided with a very short time period to respond to the show-cause notice, and due to this insufficient time, could not present all the necessary additional documents and clarifications demanded in the notice. 4. At the outset Ld. counsel for the assessee submitted that adequate and reasonable opportunity to respond to the additional issues raised in the proceedings was not granted and therefore one more opportunity be given to plead the issue on merits before Ld. CIT(A). Ld. DR did not oppose to this request. 5. We have heard rival contentions and perused the record placed before us. We observe that the assessee is a charitable trust established in 2003 and is recognized by College of Physicians and Surgeons of Mumbai since 24.09.2003 with the object of carrying out charitable activities. Application u/s 12A filed on Form 10AB on 26.06.2024. Various details were called for by Ld. CIT(E) and assessee was required to make compliance by 07.08.2024 and assessee duly submitted the 3 ITA No.299/PUN/2025 details. Ld. CIT(E) after going through these details observed certain discrepancies and again issued a notice to be completed on 25.10.2024. The assessee failed to reply and as a result application filed under section 12A was rejected. 6. We however considering the prayer of Ld. counsel of the assessee and also observing that sufficient opportunity was not granted, and also considering the principles of natural justice deem it proper to restore the issues raised on merits to the file of Ld. CIT(E) for afresh adjudication of the application filed on Form No. 10AB for registration u/s 12A of the Act after duly granting reasonable opportunity to the assessee. Assessee is also directed to remain vigilant and not to take unnecessary adjournment. Effective Grounds of appeal raised by the assessee are allowed for statistical purposes. 7. In the result appeal of the assessee is 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. 4 ITA No.299/PUN/2025 5. गार्ा फाइल / Guard File. आिेशािुसार / BY ORDER, वररष्ठ धिजी सधचव / Sr. Private Secretary आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune "