SHREE BRAHMACHAITANYA SEVA MANDAL,PUNE V. COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE, PUNE

ITA 2498/PUN/2024

AI Insights

The case involves an appeal by Shree Brahmachaitanya Seva Mandal Vishwasth Nidhi against the order of the Commissioner of Income Tax (Exemption), Pune, which rejected the assessee's application for registration under section 80G of the Income Tax Act, 1961. The rejection was based on the non-compliance of notices requesting information to verify the genuineness of the trust's activities. The Tribunal found that the notices were sent to an incorrect email address (that of the trust's consultant) and not directly to the assessee, which led to the non-compliance. The Tribunal decided to set aside the matter back to the CIT(E) for fresh consideration, providing the assessee another opportunity to comply and substantiate its application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472722 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: NIKHIL GUGALE
• Keywords: Set aside; Opportunity of being heard
• Section: 80G

Judgement Text

" अपीलीय अिधकरण “ए” Ɋायपीठ पुणे मŐ । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI R.K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2498/PUN/2024 Shree Brahmachaitanya Seva Mandal Vishwasth Nidhi, C/O The Maharashtra Executor and Trustee Company Pvt. Ltd., 568, 1st Floor Kesariwada, Narayan Peth, Pune – 411030 PAN : AACTS8706M Vs. CIT(Exemption), Pune अपीलाथŎ / Appellant ŮȑथŎ / Respondent Assessee by : Mr. Nikhil Gugale Department by : Shri Amol Khairnar Date of hearing : 08-01-2025 Date of Pronouncement : 24-02-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : The appeal filed by the assessee is directed against the order dated 09.09.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”] whereby he rejected the application of the assessee filed before him on 29.03.2024 in Form No. 10AB under clause (iii) of first proviso to sub- section (5) of section 80G of the Income Tax Act, 1961 (the “Act”). 2. The appeal has been filed with a delay of 21 days. The assessee has filed a sworn affidavit of the Managing Trustee of the assessee trust stating therein the reasons for delay in filing of the appeal. On perusal of the same, we are satisfied that the delay in filing of appeal is not intentional or deliberate but has occurred for the reasons mentioned in the affidavit. After hearing both the sides, we are of the view that the delay is attributable to the sufficient cause. We, therefore condone the delay and proceed to decide the appeal. 2 ITA No.2498/PUN/2024 3. The assessee has raised the following grounds of appeal :- “1. On facts and circumstances prevailing in the case and as per provision & scheme of the income-tax act 1956 ('The Act') it be kindly held that the order passed by the Commissioner of Income Tax Exemptions (CIT(E)'), Pune, Rejecting the Appellants application for seeking regular registration u/s 80G of the Act is without providing opportunity of being heard to the assessee and hence the order passed be declared as null and void. 2. On facts and circumstances prevailing in the case and as per provisions & scheme of the Act it be kindly held that Ld. CIT(E) erred in passing the rejection order. Accordingly, the order passed by the Ld. CIT(E) be set aside and be kindly directed to give one more opportunity of being heard. The appellant be granted just and proper relief in this respect. 3. The appellant prays to be allowed to add, amend, modify, rectify, delete, raise any grounds of appeal at the time of hearing.” 4. Briefly stated, the facts of the case are that on perusal of the assessee’s application along with annexures thereto, with a view to verify the genuineness of activities of the assessee trust and fulfillment of conditions specified in clauses (i) to (v) of section 80G(5) of the Act, the Ld. CIT(E) issued a notice through ITBA portal on 24.05.2024, which was duly served via e-portal and email, requesting the assessee to upload certain basic details/ information/clarification by 10.06.2024. The assessee failed to respond. Therefore, another notice was issued on 11.07.2024 asking the assessee to show cause as to why the assessee’s application should not be rejected and why the provisional approval granted under section 80G(5) of the Act should not be cancelled. The said show cause notice was duly served upon the assessee through e-portal and email, the compliance of which was due by 18.07.2024. But the assessee once again did not file its compliance. The Ld. CIT(E) thereafter issued final notice on 21.08.2024 which was duly served on the assessee via email/ e-portal seeking compliance by 28.08.2024. However, the assessee neither furnished the details called for nor availed the opportunity of hearing granted by the Ld. CIT(E). In the absence of any information/ documents/ details furnished by the assessee, the Ld. CIT(E) found himself unable to draw any conclusion about the genuineness of the activities of the assessee trust and fulfillment of conditions specified in clauses (i) to (v) of section 80G(5) of the Act and concluded that the assessee seems to be not having any supporting documents/ evidence to submit. He, therefore, rejected 3 ITA No.2498/PUN/2024 the application for registration filed by the assessee and also cancelled the provisional approval granted on 05.04.2022 u/s 80G(5)(vi) read with clause (iv) of first proviso to section 80G(5) of the Act. 4. Aggrieved, the assessee is in appeal before the Tribunal and all the grounds of appeal relate thereto. 5. The Ld. AR submitted that the non-compliance of notice(s) issued by the Ld. CIT(E) was not intentional but has happened due to the reason that the notice(s) were issued on the incorrect email-id, which was of the consultant of the Trust and not the email-id of the assessee trust. The notices were not sent via registered post to the registered office of the assessee trust. He further submitted that the various information/ details called for by the Ld. CIT(E) are available with the assessee trust and therefore given an opportunity, the assessee is in a position to substantiate its case by filing the same before the Ld. CIT(E). The Ld. AR requested that the matter may be set aside to the file of the Ld. CIT(E) for fresh consideration and adjudication of assessee’s application. 6. The Ld. DR had no objection to the above request of the Ld. AR. 7. We have heard the Ld. Representatives of the parties and perused the material available on record. We observe that the Ld. CIT(E) rejected the application of the assessee for want of any details/ information furnished by the assessee in response to the notice(s) issued by him. Before us, the Ld. Counsel for the assessee submitted that the Ld. CIT(E) issued the notice(s) electronically via email on the email id of the consultant of the assessee trust and they never reached the assessee due to which the assessee failed to file its compliance. The Ld. AR has also submitted that the assessee is having all the requite information/ details called for by the Ld. CIT(E) and therefore requested that one more opportunity may be granted to the assessee trust to establish its case before him. Considering the totality of the facts of the case and in the 4 ITA No.2498/PUN/2024 interest of justice, we deem it proper to restore the matter to the file of the Ld. CIT(E) with a direction to grant one final opportunity to the assessee to substantiate its case before him by filing the requisite details / information/ documents as called for by the Ld. CIT(E) and decide the issue afresh as per fact and law after giving due opportunity of being heard to the assessee. The assessee is also hereby directed to make its submissions before the Ld. CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the Ld. CIT(E) shall be at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 8. In the result, the appeal of assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 25th February, 2025. Sd/- Sd/- (R.K. Panda) (Astha Chandra) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; िदनांक / Dated : 25th February, 2025. आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant. 2. ŮȑथŎ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, “ए” बŐच, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाडŊ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, //सȑािपत Ůित// True Copy// वįरʿ िनजी सिचव / Sr. Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune "