SHAHID CAPTAIN SUSHANT GODBOLE FOUNDATION,PUNE V. CIT EXEMPTION, PUNE

ITA 2852/PUN/2024

AI Insights

The case involves Shahid Captain Sushant Godbole Foundation appealing against the decision of the CIT(Exemption), Pune, which rejected their application for registration under sections 12AA and 80G of the Income Tax Act, 1961, on the grounds of limitation and insufficient documentation. The Tribunal noted that the assessee was not given adequate opportunity to present necessary evidence to demonstrate the genuineness of their charitable activities, which constituted a violation of the principles of natural justice. The Tribunal also referenced a similar case (Dauphin Travel Marketing Private Limited vs. ITO) where the Delhi High Court had set aside an assessment due to insufficient time given to respond to a notice, reinforcing the need for adequate time and opportunity in such proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 36215 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Other Referred Cases: Dauphin Travel Marketing Private Limited vs. ITO
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESHARI
• Keywords: Principle of natural justice; Charitable institution
• Section: 12AA; 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.2851&2852/PUN/2024 धििाारण वषा / Assessment Year: 2025-2026 Shahid Captain Sushant Godbole Foundation, Flat No. 203, Building No. C-4, S No. 7/9, Sun Empire, Sun city Road, Vadgoan-411051 Maharashtra PAN-ABGTS4162G Vs CIT(Exemption), Pune Appellant Respondent Assessee by : None Revenue by : Shri Ajay Kumar Keshari - CIT Date of hearing : 05.03.2025 Date of pronouncement : 25.03.2025 आदेश/ORDER PER DR.MANISH BORAD, ACCOUNTANT MEMBER : This appeal at the instance of assessee is directed against the order of CIT(E), Pune u/s 12AA & 80G of the Income-Tax Act, 1961, dated 23.10.2024 2. Assessee has commonly raised following grounds of appeal:- 1. The Leamed CIT(E) erred in rejecting the application under Section 12AA solely on limitation grounds, disregarding the merits of the case. 2. The Leamed CIT(E) failed to provide adequate opportunity for the appellant to present evidence demonstrating the genuineness of charitable activities and compliance with Section 12A provisions violating the principles of natural justice. 3. The Leamed CIT(E) disregarded the welfare-oriented intent of the Income Tax Act, 1961, and the purpose of Section 12A, which is to promote charitable activities benefiting society. 4. The Leamed CIT(E)'s decision conflicts with the Directive Principles of State Policy within the Constitution of India. These principles highlight the legislative intent to support charitable trusts for the public good. 5. The Learned CIT(E) issued notice on 04-10-2024 requesting the appellant to file explanation to the discrepancies pointed out in the above notice, on or before 11-10-2024. Undisputedly, the time given to the 2 ITA No.2851&2852/PUN/2024 appellant for compliance is less than a week, which is against the Standard Operative Procedure ('SOP') issued by the CBDT dated 19.11.2020, wherein, minimum period of 15 days is required to be given to the assessee to comply with notices from the date of issue of the notice. Recently, the Hon'ble Delhi High Court in the case of Dauphin Travel Marketing Private Limited vs. ITO in W.P.(C) 8870/2023 & CM Nos. 33516-17/2023 dated 05.07.2023 taking note of this SOP held that the grant of insufficient time to respond the notice violates the principles of natural justice and, therefore, set-aside the assessment. Thus, it is clear that the appellant was given unreasonably very short period of time to respond to the notice, which is against the principles of natural justice. 6. The above grounds of appeal may kindly be allowed to be amended, altered, modified etc in the interest of natural justice. 3. At the outset Ld. counsel for the assessee submitted that the issues raised in instant two appeals needs to be restored to the file of Ld. CIT(E) since no adequate opportunity was provided to the appellant to file the evidence demonstrating the genuineness of charitable activities and compliance to provisions of section 12A and section 80G(5) of the Act. Ld. DR raised no objection in the matter and is restored to the file of Ld. CIT(E). 4. We have heard rival contentions and perused the record placed before us. The application on Form 10AB filed u/s 12A(1)(ac)(iii) and 80G(5) of the Act on 22.06.2024 has been rejected by Ld. CIT(E) as the assessee did not filed supporting documents/evidence called for. Perusal of records indicates that adequate opportunity was not granted to the assessee. 5. We therefore in the interest of justice and being fair to both the Parties remit the issue raised on merit regarding registration u/s 12A and section 80G(5) of the Act to the file of Ld. CIT(E) for necessary adjudication in accordance with Law for which assessee should be provided reasonable opportunity of hearing and assessee is also directed to remain vigilant and not to take unnecessary adjournment. Accordingly all the grounds of appeal raised in ITA No. 2851 & 2852/PUN/2024 are allowed for statistical purposes. 3 ITA No.2851&2852/PUN/2024 6. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced on this 25th day of March, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ Pune; दििांक / Dated: 25th March, 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. 5. गार्ा फाइल / Guard File. आिेशािुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune. "