SHAAN EDUCATION SOCIETY ,PUNE V. CIT EXEMPTION , PUNE

ITA 2414/PUN/2024

AI Insights

The case involves the Shaan Education Society, a charitable trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Pune, denying them registration under section 12AA of the Income Tax Act, 1961. The trust had initially filed for registration, which was provisionally granted. However, upon issuing a notice for additional information and not receiving compliance, the CIT(E) cancelled the provisional registration. The Tribunal found that the CIT(E) had not adequately considered the submissions made by the trust and had not provided a reasonable opportunity for the trust to address the discrepancies noted. Consequently, the Tribunal restored the matter to the CIT(E) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474143 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2025
• 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 KESHARI
• Assessee Lawyers: NEELESH KHANDELWAL
• Keywords: Opportunity of being heard; Charitable institution

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2414/PUN/2024 Shaan Education Society, Guardian School, Near PMC School, NIBM Crossing Main Kondhwa Road, Pune 411 047, Maharashtra PAN : AABAS4522K Vs. CIT (Exemption), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of appellant is directed against the order framed by ld. Commissioner of Income Tax (Exemption), Pune dated 24.09.2024 denying grant of registration u/s.12AA of the Income Tax Act, 1961 ( in short ‘the Act’). 2. Facts of the case in brief are that the appellant is a Charitable Trust registered under Maharashtra Public Trust Act, 1950. It is mainly formed with the object of providing education to all. It filed application on Form No.10AB under clause (iii) of section 12A(1)(ac) of the Act for grant of regular registration on 29.03.2024. In order to verify the genuineness of activities of the appellant, the ld. CIT (Exemption) issued a notice through ITBA portal on 24.05.2024 calling upon the appellant to file certain information/clarification. The appellant filed the requisite details. Appellant by : Shri Neelesh Khandelwal Revenue by : Shri Ajay Kumar Keshari Date of hearing : 10.02.2025 Date of pronouncement : 05.03.2025 ITA No.2414/PUN/2024 Shaan Education Society 2 However, the ld.CIT(E) issued another notice to the appellant on 13.09.2024 pointing out certain discrepancies (para 4 of the impugned order). There was no compliance from the side of appellant to such notice. In the circumstances, the ld.CIT(E) rejected the application filed by the appellant, thereby cancelling the provisional registration granted to it. 3. Aggrieved appellant is now in appeal before the Tribunal in the present appeal assailing the impugned order denying grant of registration u/s.12AA of the Act. 4. We have heard both the sides and perused the record placed before us. We find the appellant in response to the first notice issued by the ld. CIT(E) has filed the requisite details. However, when the ld. CIT(E) issued another notice asking the appellant to clarify regarding certain discrepancies found in the above submissions, the appellant failed to comply to the same. During the course of hearing before us, ld. Counsel for the appellant submitted that the appellant vide letter dated 25.06.2024 has filed all the details along with Registration Certificate, Trust Deed, MOA and other details as called for by the ld.CIT(E). However, the ld.CIT(E) without considering the said submissions/details and without providing reasonable opportunity rejected the application filed by the appellant. Considering the totality of the facts of the case, submissions made by the Ld. Counsel for the appellant and in the interest of justice, we deem it proper to restore the issue to the file of the ld. CIT(E) with a direction to grant an opportunity to the appellant to substantiate its case by filing requisite details and decide the issue as per fact and law after giving due opportunity of being heard to the appellant. The appellant is also hereby directed to make its submissions, if any, ITA No.2414/PUN/2024 Shaan Education Society 3 before the ld. CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the ld. CIT(E) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the appellant are accordingly allowed for statistical purposes. 5. In the result, the appeal of the appellant is allowed for statistical purposes. Order pronounced on this 05th day of March, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 05th March, 2025. Satish 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. "