SAUBHAGYA ANAND CHARITABLE TRUST,NASHIK V. .CIT(E), PUNE

ITA 2104/PUN/2024

AI Insights

The case involves Saubhagya Anand Charitable Trust, which appealed against the orders of the Commissioner of Income Tax (Exemption), Pune, denying them registration under section 12A and approval under section 80G(5) of the Income Tax Act, 1961. The CIT(E) had initially issued notices to the Trust requesting information to verify the genuineness of its activities, which the Trust responded to. However, the CIT(E) found the responses insufficient, leading to the rejection of their application. The Tribunal, after hearing the parties, decided to set aside the CIT(E)'s orders and remand the matter for a fresh examination, allowing the Trust another opportunity to present its case with adequate evidence.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 41367 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Appeal Filed On: 14-10-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESHARI
• Assessee Lawyers: ABHAY AVACHAT
• Keywords: Reasonable cause; Charitable institution
• Section: 101

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 Nos.2104 and 2105/PUN/2024 Saubhagya Anand Charitable Trust, Anand Nagari Sahakari Patsanstha Building, Artillary Centre Road, Nashik Road, Nashik – 422 101 Maharashtra PAN : AAOTS9602A Vs. CIT (Exemption), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeals at the instance of appellant are directed against the orders framed by ld. Commissioner of Income Tax (Exemption), Pune both dated 29.08.2024 denying grant of registration u/s.12A and approval u/s.80G(5) of the Income Tax Act, 1961 (‘the Act’). ITA No.2105/PUN/2024 : 2. Tersely, the facts of the case are that the appellant filed application on Form No.10AB under clause (iii) of section Assessee by : Shri Abhay Avachat Revenue by : Shri Ajay Kumar Keshari Date of hearing : 09.12.2024 Date of pronouncement : 09.12.2024 ITA Nos.2105 and 2104/PUN/2024 Saubhagya Anand Charitable Trust 2 12A(1)(ac) of the Act for grant of regular registration u/s.12A of the Act on 06.02.2024. In order to verify the genuineness of activities of the appellant, the ld. CIT (Exemption) issued a notice through ITBA portal on 29.04.2024 calling upon the appellant trust to file certain information/clarification. The appellant filed the requisite details. However, the ld.CIT(E) issued another notice to the appellant on 01.08.2024 pointing out certain discrepancies (para 3 of the impugned order). The appellant submitted its response giving description of nature of activities etc. However, the ld.CIT(E) rejected the application filed by the appellant, thereby cancelling the provisional registration granted to it by observing as under : “5. After verification of the documents it is observed that the trust has submitted a general note about activities, despite giving necessary opportunities to furnish the details called for the assessee has failed to submit the evidences with respect to the activities (in the form of snaps, videos, links, media reports, bills, date of activity conducted, identification of beneficiaries etc.) undertaken for the last three years or since inception, whichever is later. In absence of this information the undersigned is not satisfied about the actual commencement of the activities and the genuineness of the same. 6. In view of the above, the undersigned is not satisfied about the genuineness of activities of the assessee and compliance 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. The application filed by the assessee is hereby rejected and the provisional registration granted on 31/08/2021 under section 12AB read with section 12A(1)(ac)(vi) of the Income Tax Act, 1961 is hereby cancelled.” ITA Nos.2105 and 2104/PUN/2024 Saubhagya Anand Charitable Trust 3 3. Aggrieved appellant approached the Tribunal challenging the impugned order denying grant of registration u/s.12A of the Act. 4. We have heard the parties and perused the relevant material on record. On perusal of the impugned order, it would reveal that the appellant in response to notice dated 01.08.2024 submitted details giving description about the nature of activities, however, the ld.CIT(E) was not satisfied with the explanation in absence of evidences. The ld. Counsel for the assessee during the course of present hearing submitted that the appellant is now in a position to submit the requisite information with evidences to the satisfaction of the ld.CIT(E) and therefore prayed for giving one more opportunity to the appellant to represent its case. In view thereof and in the interest of justice, without dwelling into merits of the issue, we set-aside the impugned order under challenge and remit back the issues on merit to the file of Ld. CIT(E) to the stage of its institution with a direction to adjudicate the subject matter denovo in accordance with law after providing reasonable opportunities and pass a speaking order. Appellant is also directed to remain vigilant and make satisfactory compliance to the notice(s) of hearing issued by ld.CIT(E) and should refrain from taking adjournments unless otherwise required for ITA Nos.2105 and 2104/PUN/2024 Saubhagya Anand Charitable Trust 4 reasonable cause. Effective grounds of appeal raised by the appellant are allowed for statistical purposes. ITA No.2104/PUN/2024 : 5. The instant appeal is against the order framed by ld.CIT(A) denying grant of approval u/s.80G(5) of the Act. Since we have remanded the issue of grant of registration to the file of ld.CIT(E) for denovo 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(E), being consequential, for denovo adjudication. 6. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced on this 09th day of December, 2024. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 09th December, 2024. Satish ITA Nos.2105 and 2104/PUN/2024 Saubhagya Anand Charitable Trust 5 आदेश क\u0002 \u0003ितिलिप अ\tेिषत / Copy of the Order forwarded to : 1. अपीलाथ\f / The Appellant. 2. \r\u000eयथ\f / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय \rितिनिध, 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. "