SANGRAM PUNYASATHI FOUNDATION,PUNE V. CIT, PUNE

ITA 504/PUN/2025

AI Insights

The case involves Sangram Punyasathi Foundation, a public charitable organization, which appealed against the decision of the CIT (Exemption) denying their application for regular registration under section 12AB of the Income Tax Act. The foundation argued that they were not given sufficient opportunity to furnish all required details before the CIT (Exemption) passed the impugned order. The tribunal noted the procedural lapses and the need for a fair hearing, leading to the decision to remit the case back to the CIT (Exemption) for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314515 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Other Referred Cases: Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987) 2 SCC 107
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESHARI
• Assessee Lawyers: ANAND KHANDELWAL
• Keywords: Condonation of delay; Reasonable cause; Charitable institution

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.504/PUN/2025 Sangram Punyasathi Foundation, S.No.75, Bhagyashree Pune City, Prabat Road, Lane No.15, Ex-Serviceman Colony, Pune 411 004, Maharashtra PAN : ABLCS6105K Vs. CIT (Exemption) Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee is directed against the order dated 16.11.2024 passed by ld.CIT (Exemption) denying the grant of regular registration u/s.12AB of the Act. 2. Registry has informed that there is delay of 25 days in filing the appeal before the Tribunal. Application for condonation of delay has been filed stating that it is solely on the part of professional looking after the work of tax related matters. 3. After hearing both the sides and considering the reasons giving rise to the delay and also placing reliance on the judgment of Hon’ble Supreme Court in the case of Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987) 2 SCC 107) we find that there was ‘reasonable cause’ in not filing the appeal within the Appellant by : Shri Anand Khandelwal Revenue by : Shri Ajay Kumar Keshari Date of hearing : 29.04.2025 Date of pronouncement : 08.05.2025 ITA No.504/PUN/2025 Sangram Punyasathi Foundation 2 time limit specified under the Act. We therefore condone the delay of 25 days in filing the appeal and admit the appeal for adjudication. 4. Though the assessee has raised various grounds of appeal but the sole grievance is that ld.CIT(A) erred in rejecting the application filed by the assessee on Form No.10AB for the regular registration u/s.12AB(1)(ac)(iii) of the Act filed on 29.05.2024. 5. At the outset, Ld. Counsel for the assessee submitted that sufficient opportunity was not granted by the ld.CIT(E) to furnish the details. Assessee has submitted certain details in response to notice of hearing but then after the response given on 23.10.2024 ld.CIT(E) again asked for certain details but before the assessee could furnish the requisite details ld.CIT(E) passed the impugned order on 16.11.2024 rejecting the application for grant of registration u/s.12AB cancelling the provisional registration granted on 12.12.2023. Therefore, a prayer was made to provide one more opportunity. Reference was also made to the paper book running into 102 pages which also includes the list of additional documents which the assessee intends to file before ld.CIT(E). 6. Ld. Departmental Representative supported the orders of the lower authorities. 7. We have heard the rival arguments made by both the sides and perused the record placed before us. The assessee is a Public Charitable organisation engaged in the activities aimed at public welfare including Research, Governance models, outreach ITA No.504/PUN/2025 Sangram Punyasathi Foundation 3 programs and social initiatives mainly civic issues of Pune. Provisional registration u/s.12AB of the Act was granted on 12.12.2023. Thereafter, assessee filed application for regular registration u/s.12A r.w.s.12AB of the Act on 29.05.2024. First notice was issued on 25.06.2024 for providing various details which are mentioned in the impugned order from pages 3 to 8 and to file these details by 10.07.2024. These details were filed by the assessee finally on 23.10.2024. However, ld.CIT(E) wanted to examine few more bills of electronic items purchased, stationery and advertisement expenses, date and place of activity, participants and documentary evidences with reference to the purported activities. The said details could not be furnished by the assessee for lack of sufficient time to gather those details. In the mean time, impugned order was passed rejecting the assessee’s application for regular registration u/s.12AB of the Act. Before us, assessee has filed various documents including additional documents and considering the facts and circumstances of the case and in the larger interest of justice being fair to both the parties, we deem it appropriate to remit the issue to the file of ld.CIT(E) for denovo adjudication. Ld.CIT(E) shall deal with the same and decide the assessee’s application for regular registration u/s.12AB of the Act after affording reasonable opportunity to the assessee. Assessee is directed to remain vigilant and not to take unnecessary adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised on merits by the assessee are allowed for statistical purposes. ITA No.504/PUN/2025 Sangram Punyasathi Foundation 4 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on this 08th day of May, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 08th May, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "