SHRI DODESHWAR MAHADEV MANDIR TRUST, SATANA,NASHIK V. CIT, EXEMPTION, PUNE, PUNE

ITA 2605/PUN/2024

AI Insights

The case involves the Shri Dodeshwar Mahadev Mandir Trust, which appealed against the order of the Commissioner of Income Tax (Exemption), Pune, rejecting their application for permanent registration under section 12AB of the Income Tax Act, 1961. The CIT(E) had initially granted provisional registration but later sought additional information to verify the genuineness of the trust's activities and compliance with legal requirements. The trust failed to adequately respond to the notices, leading to the rejection of their application and cancellation of provisional registration. The Tribunal found that the CIT(E) had not provided sufficient opportunity for the trust to explain the discrepancies and thus allowed the appeal for statistical purposes, directing a re-examination of the case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472372 (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
• Keywords: Set aside; Opportunity of being heard

Judgement Text

" आयकर 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.2605/PUN/2024 Shri Dodeshwar Mahadev Mandir Trust, At Karhe Taluka Baglan, Satana, Dist. Nashik – 423301 PAN : AAWTS0793E Vs. CIT(Exemption), Pune अपीलाथŎ / Appellant ŮȑथŎ / Respondent Assessee by : N O N E Department by : Shri Amol Khairnar Date of hearing : 06-02-2025 Date of Pronouncement : 25-02-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : The appeal filed by the assessee is directed against the order dated 11.03.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”] whereby he rejected the application of the assessee filed before him on 29.09.2023 in Form No. 10AB under clause (iii) of section 12A(1)(ac) of the Income Tax Act, 1961 (the “Act”). 2. The assessee has raised the following grounds of appeal :- “1. On the facts and in the prevailing circumstances of the case and in law, the learned CIT Exemption has erred in rejecting the application in form no 10AB under clause (ii) of section 12A(ac) for permanent registration without considering the submission of the assessee in the right perspective and without giving reasonable opportunity of being heard. The order of the CIT Exemption may kindly be set aside and permanent registration u/s 12AB may kindly be granted with the restoration of provisional registration granted on 30-11-2022 u/s 12AB r.w.s. 12A(1)(ac)(vi). 2 ITA No.2605/PUN/2024 2. The Appellate craves the right to add, amend, modify, alter, revise, substitute, delete any or all grounds of the appeal, if deemed necessary at the time of hearing of the appeal.” 3. Briefly stated, the facts of the case are that on perusal of the assessee’s application for registration along with annexures thereto, with a view to verify the genuineness of activities of the assessee trust 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, the Ld. CIT(E) issued a notice through ITBA portal on 23.11.2023, which was duly served via e-portal and email, requesting the assessee to upload certain information/clarification by 08.12.2023. The assessee failed to respond. Therefore, another notice was issued on 21.12.2023 seeking compliance by 27.12.2023. In response thereto, the assessee filed the requisite details / information. On verification of the same, the Ld. CIT(E) noticed various discrepancies which were communicated to the assessee vide notice dated 26.02.2024 asking the assessee to show cause as to why the application for regular registration should not be rejected and why the provisional registration granted to the assessee should not be cancelled. The said show cause notice was duly served upon the assessee through e-portal and email and the compliance was sought by 04.03.2024. However, the assessee neither submitted any explanation nor availed the opportunity of hearing granted by the Ld. CIT(E). In the absence of any explanation to the discrepancies communicated to the assessee, the Ld. CIT(E) presumed that the assessee has nothing to say in the matter. In this view of the matter, the Ld. CIT(E) observed that he is unable to draw any satisfactory conclusion about the genuineness of the activities of the assessee trust and the compliance of requirements of any other law for the time being in force by the assessee as are material for the purpose of achieving its objects. He, therefore, by this impugned order rejected the application for registration filed by the assessee and also cancelled the 3 ITA No.2605/PUN/2024 provisional registration granted on 30.11.2022 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the Act. 4. Aggrieved, the assessee is in appeal before the Tribunal raising the solitary ground reproduced in paragraph 2 above. 5. When the appeal was called for hearing on 06.02.2025, none appeared on behalf of the assessee despite due service of notice of hearing. We, therefore, proceeded to dispose of the appeal with the able assistance from the Ld. DR ex-parte qua the assessee. 6. The Ld. DR submitted that the ample opportunities were granted by the Ld. CIT(E). However, the assessee did not avail the same. Therefore, the Ld. CIT(E) was completely justified in rejecting the application of the assessee for registration and also cancelling the provisional registration granted earlier. 7. We have heard the Ld. DR and perused the material available on record. We observe that in response to the notice issued on 21.12.2023 by the Ld. CIT(E), the assessee filed the requisite details. On verifying the same, the Ld. CIT(E) issued another notice on 26.02.2024 asking the assessee to clarify certain discrepancies listed by the Ld. CIT(E) in para 2.2 of the impugned order but the assessee failed to file any compliance thereto. Thus, in the absence of any explanation / clarification offered by the assessee, the Ld. CIT(E) could not draw any satisfactory conclusion about the genuineness of the activities of the assessee trust and proceeded to pass the impugned order. Considering the totality of the facts of the case and in the 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 and decide the issue 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. 4 ITA No.2605/PUN/2024 CIT(E) shall be at liberty to pass appropriate order as per law. We hold and direct accordingly. The ground raised by the assessee is 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. रिव 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. //सȑािपत Ůित// True Copy// आदेशानुसार / BY ORDER, / / True Copy / / वįरʿ िनजी सिचव / Sr. Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune "