SHALINI PRATISHTHAN,AHMEDNAGAR V. CIT EXEMPTION , PUNE

ITA 2678/PUN/2024

AI Insights

The case involves Shalini Pratishthan, an appellant, who filed an appeal against the order of the CIT(Exemption), Pune, which rejected their application for approval under section 80G of the Income Tax Act, 1961. The rejection was primarily due to the assessee's failure to respond to notices requesting clarification and information to verify the genuineness of their activities and fulfillment of conditions under section 80G(5) of the Act. The Tribunal considered the circumstances presented by the assessee, including a mistake by their accountant, and decided to remand the matter back to the CIT(Exemption) for a final opportunity to comply with the requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24638 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2025
• 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: DEEPA KHARE VIRTUAL
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No.2678/PUN/2024 Shalini Pratishthan C/o Ramdas Bhausaheb Kanade Kanade Mala, Ahmednagar – 414001 Vs. CIT(Exemption), Pune PAN: AAMTS8462Q (Appellant) (Respondent) Assessee by : Smt. Deepa Khare (virtual) Department by : Shri Ajay Kumar Keshari, CIT Date of hearing : 20-03-2025 Date of pronouncement : 21-03-2025 O R D E R PER R. K. PANDA, VP : This appeal filed by the assessee is directed against the order dated 17.10.2024 of the Ld. CIT(Exemption), Pune rejecting the application for approval u/s 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Facts of the case in brief, are that the assessee filed an application in Form No.10AB on 20.06.2024 for approval under sub clause (B) of (iv) of first proviso to sub section (5) of section 80G of the Act. With a view to verify the genuineness of the activities of the assessee and fulfillment of conditions laid down in clause (i) to (v) of section 80G(5) of the Act, a notice was issued through ITBA portal on 18.07.2024 requesting the assessee to upload certain information / clarification. 2 ITA No.2678/PUN/2024 Since the assessee did not respond to the said notice, the Ld. CIT(E) issued another notice to the assessee to substantiate its case for grant of approval u/s 80G of the Act. However, in the absence of any compliance from the side of the assessee, the Ld. CIT(E) rejected the application for approval u/s 80G by observing as under: “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 sub-clause (a) of clause (ii) of second proviso to section 80G(5) of the Income Tax Act, 1961 and hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and fulfilment of conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act and has left no alternative but to reject the application. 9. Without prejudice to the above, the provisions of clause (iii) of first proviso to section 80G(5) of the Act are applicable to a trust / institution which is provisionally approved under section 80G(5)(vi) of the Act. As per the provisions of Rule 11AA(2)(e) of the Income Tax Rules, 1962, the copy of existing order of approval was required to be submitted along with the application itself. Thus, the assessee was required to submit the copy of order of provisional approval u/s 80G(5)(vi) read with clause (iv) of first proviso to section 80G(5) of the Income Tax Act, 1961. However, the assessee has not submitted copy of provisional approval under section 80G(5)(vi) of the Income Tax Act, 1961. The non- submission of copy of order of provisional approval u/s 80G(5) establishes the fact that the prerequisite of the provisions of clause (iii) of first proviso to section 80G(5) of the Act for approval u/s 80G(5) of the Income Tax Act, 1961 is not fulfilled. 10. In view of the above, the application filed by the assessee is hereby rejected.” 3. Aggrieved with such order of Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds: 4. The Ld. Counsel for the assessee submitted that due to the mistake on the part of the accountant of the assessee trust in not informing the notice issued by the Ld. CIT(E) all these unfortunate events happened. She submitted that given an 3 ITA No.2678/PUN/2024 opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. CIT(E). She accordingly submitted that in the interest of justice, the assessee should be given an opportunity to substantiate its case by filing the requisite details before the Ld. CIT(E). 5. The Ld. DR on the other hand heavily relied on the order of Ld. CIT(E). 6. We have heard the rival arguments made by both the sides, perused the order of the CIT(E) and the paper book filed on behalf of the assessee. It is an admitted fact that despite sufficient opportunities granted by the Ld. CIT(E), the assessee did not respond to any of the notices for which he rejected the application for grant of approval u/s 80G of the Act, the reasons of which have already been reproduced in the preceding paragraphs. It is the submission of the Ld. Counsel for the assessee that due to the mistake of the accountant of the trust, those details could not be filed. It is also her submission that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. CIT(E) to his satisfaction. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(Exemption) with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details to his satisfaction and decide the issue as per fact and law. The assessee is also hereby directed to submit the details as called for by the Ld. CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the Ld. CIT(Exemption) is at liberty 4 ITA No.2678/PUN/2024 to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 21st March, 2025. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 21st March, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘B’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune 5 ITA No.2678/PUN/2024 S.No. Details Date Initials Designation 1 Draft dictated on 20.03.2025 Sr. PS/PS 2 Draft placed before author 21.03.2025 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order "