SAVYASACHI GURUKULAM MULTIPURPOSE TRUST VENGRUL,PUNE V. CIT (EXEMPTION) PUNE, PUNE

ITA 2854/PUN/2024

AI Insights

The case involves the Savyasachi Gurukulam Multipurpose Trust, which appealed against the decisions of the CIT, Exemption, Pune, rejecting their applications for registration under section 12AB and for approval under section 80G of the IT Act. The Trust failed to comply with multiple notices requesting information to verify the genuineness of its activities and compliance with legal requirements. The Tribunal found merit in the Trust's argument that the authorized person was sick, preventing compliance, and thus decided to remand the matter back to the CIT for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712417 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADITYA SHUKLA
• Assessee Lawyers: PRASANNA TANAJI KAMBLE
• Keywords: Opportunity of being heard; Corroborative evidences
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.2854 and 2855/PUN/2024 Savyasachi Gurukulam Multipurpose Trust Vengrul, Gat No.167, Vengrul, Bhudargad, Kolhapur- 416210. PAN : ABFTS3989J Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 24.10.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act filed on 07.06.2024 and denying the application for approval in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act filed on 07.06.2024. Assessee by : Shri Prasanna Tanaji Kamble Revenue by : Shri Aditya Shukla Date of hearing : 21.07.2025 Date of pronouncement : 28.07.2025 Printed from counselvise.com ITA Nos.2854 and 2855/PUN/2024 2 ITA No.2855/PUN/2024 : 2. Facts of the case, in brief, are, that the assessee filed application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act on 07.06.2024. With a view to verify 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, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 12.07.2024 requesting the assessee to upload certain information/clarification. The assessee did not comply to this notice. Another notice was issued on 05-10-2024 to furnish desired information & the assessee was specifically asked to show cause why the application for registration should not be rejected. Since the assessee did not comply to this notice also and has not furnished any explanation in reply to the above notice, Ld. CIT, Exemption, Pune rejected the application filed by the assessee by observing as under :- “5. The information / details were called for under the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961. These are the basic details required to ascertain the overall nature of the activities of the assessee and are directly relevant to the present proceedings. However, the assessee has failed to comply despite giving sufficient Printed from counselvise.com ITA Nos.2854 and 2855/PUN/2024 3 opportunities as discussed above including an opportunity of being heard. 6. Thus, the assessee has failed to furnish the details called for under the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961 to verify the genuineness of activities of the trust / institution and to verify the 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. 7. In absence of the compliance to the above requirement, it is not possible to arrive at any conclusion about the genuineness of activities of the assessee and the compliance to the 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. 8. It is clear from the above that the assessee was given sufficient opportunity to comply, but it has not complied to the same. It seems that the assessee is not having any supporting documents / evidence to submit. The assessee has failed to comply with the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961. Hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and the compliance to the 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. Therefore, the undersigned has left no alternative but to reject the application. 9. Without prejudice to the above, it is seen that the trust has obtained provisional registration in form 10AC under item (A) on 26/02/2024. However, as per financial statements the trust's activities were commenced atleast from the FY 2022-23 i.e. before the date of provisional registration. Therefore, said provisions of sec.12A(1)(ac)(vi)(A) of the Act are not applicable to the assessee’s case.” 2.1. It is the above order against which the assessee is in appeal before this Tribunal. 3. Ld. AR appearing from the side of the assessee submitted before us that the order passed by Ld. CIT, Exemption, Pune is not Printed from counselvise.com ITA Nos.2854 and 2855/PUN/2024 4 justified. It is submitted that the information & documents desired by Ld. CIT, Exemption, Pune could not be handed over to the consultant since the authorised person was sick. Ld. AR submitted that since no reply was furnished before Ld. CIT, Exemption, Pune the application for approval u/s 12A of the IT Act was rejected. Ld. AR submitted that the desired information is very well available with the assessee & if one opportunity is provided to him he will be able to produce all such desired information before Ld. CIT, Exemption, Pune. Accordingly, Ld. AR requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune, involving the issue of registration u/s 12AB of the IT Act & requested to remand the matter back to him with a direction to decide the application for registration u/s 12AB of the IT Act afresh. 4. Ld. DR appearing from the side of the Revenue supported the order passed by Ld. CIT, Exemption, Pune and requested to confirm the same. 5. In this regard, we find that admittedly two notices were issued by Ld. CIT, Exemption, Pune & both the above notices were not complied by the assessee. It is the sole contention of Ld. Printed from counselvise.com ITA Nos.2854 and 2855/PUN/2024 5 Counsel of the assessee that if the assessee has not furnished requisite information/documents on the requisite date, one further opportunity should have been provided to him by Ld. CIT, Exemption, Pune. It was also contended that the authorised person was sick & therefore could not supply the desired documents to the consultant who resultantly could not reply to the notices issued by Ld. CIT, Exemption, Pune, which consequently resulted in rejection of application for registration u/s 12AB of the IT Act. It was the sole prayer of Ld. AR that if one more opportunity is provided to the assessee, it will furnish all the desired documents/evidences and supporting evidences before Ld. CIT, Exemption, Pune in support of application for registration u/s 12AB of the IT Act. 5.1 We find some force in the above arguments of Ld. Counsel of the assessee. Considering the totality of the facts of the case & in the interest of justice and without going into the merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the application for registration afresh as per fact and law after providing reasonable opportunity of hearing to the Printed from counselvise.com ITA Nos.2854 and 2855/PUN/2024 6 assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and produce requisite documents/information in support of the application for registration without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee are partly allowed. 6. In the result, the appeal filed by the assessee in ITA No.2855/PUN/2024 is allowed for statistical purposes. ITA No.2854/PUN/2024 : 7. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(iii) to the file of Ld. CIT, Exemption, Pune for de novo 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, Exemption, Pune being consequential, for de novo adjudication. Printed from counselvise.com ITA Nos.2854 and 2855/PUN/2024 7 8. In the result, the appeal filed by the assessee in ITA No.2854/PUN/2024 is allowed for statistical purposes. 9. To sum up, both the above captioned appeals filed by the assessee are allowed for statistical purposes. Order pronounced on this 28th day of July, 2025. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 28th July, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT, Exemption, Pune. 4. The Pr. CIT/CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "