SHRI GAJANAN MAHARAJ GUPTE SAMADHI VISHVASTA MANDAL,PUNE V. CIT EXEMPTION , PUNE

ITA 918/PUN/2025

AI Insights

The case involves Shri Gajanan Maharaj Gupte Samadhi Vishvasta Mandal, a trust, which appealed against the order of the Commissioner of Income Tax (Exemptions), Pune, rejecting its application for registration under section 12AB of the Income Tax Act, 1961. The rejection was based on the trust's failure to comply with requests for documentation and clarification regarding its charitable activities and financial dealings. The Tribunal noted the trust's non-compliance was not intentional but due to the poor health of its consultant and the advanced age of its trustee. The Tribunal decided to set aside the CIT(E)'s order and remand the case for a fresh decision, allowing the trust an opportunity to substantiate its activities and compliance with the law.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712773 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Other Referred Cases: Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987) 167 ITR 471 (SC), Inder Singh Vs. The State of Madhya Pradesh reported in 2025 LiveLaw (SC) 339
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: BHUVANESH KANKANI
• Keywords: Set aside; Opportunity of being heard; Reasonable cause; Corroborative evidences; Gift; Non compliance; Tangible material

Judgement Text

" आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । 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.918/PUN/2025 Shri Gajanan Maharaj Gupte Samadhi Vishvasta Mandal, House No. 669, Rahalkar Wada, Raviwar Peth Raviwar Karanja, Nashik-422001 PAN : AADTS2109R Vs. CIT (Exemptions), Pune अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee by : Shri Bhuvanesh Kankani Department by : Shri Amol Khairnar Date of hearing : 28-07-2025 Date of Pronouncement : 30-07-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : The appeal filed by the assessee is directed against the order dated 20.09.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”] whereby he rejected the application of the assessee filed before him on 30.03.2024 in Form No. 10AB under clause (iii) of section 12A(1)(ac) of the Income Tax Act, 1961 (the “Act”). 2. There is a delay of 132 days in filing of this appeal before the Tribunal for which the assessee has filed an affidavit explaining the reasons for such delay which is mainly because of poor health condition of his consultant which has been evidenced by the submission of the medical documents, annexed with the affidavit. 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, in light of the decisions of the Hon'ble Supreme Court in the case of Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987) 167 ITR 471 (SC) and in the case of Inder Printed from counselvise.com 2 ITA No.918/PUN/2025 Singh Vs. The State of Madhya Pradesh reported in 2025 LiveLaw (SC) 339, condone the said delay and proceed to decide the appeal. 3. The assessee has raised the following grounds of appeal : “1. On facts and circumstances prevailing in the case and as per provisions & scheme of the Income-tax Act, 1961 ('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 registration u/s 12AB of the Act is against the provisions of the Act. Accordingly, the order passed by the Ld. CIT(E) be held as not tenable in law and be set aside directing the Ld. CIT(E) to grant registration. The appellant be granted just and proper relief in this respect. 2. On facts and circumstances prevailing in the case and as per provisions & scheme of the Act it be kindly held that Appellant be kindly granted an opportunity to furnish relevant documents to prove/substantiate its charitable activities before Ld. CIT(E). Accordingly, the order passed by the Ld. CIT(E) be kindly set aside and 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 receipt of the assessee’s application filed in Form No. 10AB u/s 12A(1)(ac)(iii) of the Act along with annexures thereto, with a view to verify the genuineness of the activities of the assessee and compliance to requirements of any other law for the time being in force, the Ld. CIT(E) issued notice on 24.05.2024 through ITBA portal which was duly served on the assessee requesting the assessee to upload certain information/clarification such as date of commencement of activity, date of expiry of provisional registration, details of any other law applicable for achievement of objectives and the proof of compliance of said law, proof of identity of main trustees/managing trustees/directors/trustees/secretary, list of donors, note on activities carried out in the last three years/inception etc. under the provisions of section 12AB of the Act. The compliance was sought by 10.06.2024. On verification of the details/documents filed by the assessee, the Ld. CIT(E) noticed various discrepancies which were communicated vide issue of another notice dated 03.09.2024 seeking compliance by 10.09.2024 which was extended till 16.09.2024 on request for adjournment made by the assessee. The said discrepancies are reproduced below : \"(i) Kindly furnish evidences claiming expenses on charitable activities such as bills/vouchers/invoices alongwith photographs of charitable activities carried out by your trust. Printed from counselvise.com 3 ITA No.918/PUN/2025 (ii) You have not submitted ledger account of donation receipts. You were specifically requested to furnish year-wise list of all donations received (including corpus donations etc.) during the last 3 years / since inception, whichever is later viz. name of donor, address of donor, amount of donation, mode of donation / receipts etc. vide initial notice. You have not furnished the details as required in above format. Please furnish the same. (iii) It is seen from your submission that you have not furnished note on activity. As per the provisions of Rule 17A(2)(k) /11AA(2)(h) of the Income Tax Rules, 1962, the application in Form No.10AB shall be accompanied by note on activities giving details of activities actually carried out but you have failed to comply with those provisions. You ought to be submit the details of actual activities carried out in the last 3 years or since inception, whichever is later. Further, the supporting evidence of the activities in the form bills and photographs are also not submitted by you. In absence of any such tangible material in respect of details and proof of activities being carried out, it is not possible to ascertain as to whether the activities are charitable and in line with the objects of the trust / institution. (iv) It is seen that expenses on religious activities is more than the prescribed limit in your case in violation of section 80G(5B). Please clarify alongwith evidences. (v) It is seen that no credible evidence is furnished in support of the charitable activities claimed to have been carried out except some expenses i.e. Abhishek expenses, kanya chatra expenses, naivaidya expenses, guru pournima expenses, festival expenses, puja expenses, diwali gifts and considering the fact that a very meagre expenditure is shown on objects as compared to expenditure on establishment, and it is found that the trust is defunct since very meager expenditure are made on objects in last three years and as per financial statement of the trust. Kindly furnish your explanation with credible evidences.\" 4.1 As the assessee failed to furnish any explanation to the discrepancies communicated to it vide the above notice, the Ld. CIT(E) presumed that the assessee has nothing to say in the matter. Having been unable to draw any satisfactory conclusion about the genuineness of the activities of the assessee trust, the Ld. CIT(E) therefore proceeded to pass the impugned order rejecting the application of the assessee and also cancelling the provisional registration earlier granted to the assessee observing as under : “7. Considering the above facts discussed in the show notice and discrepancies noticed and also that the assessee has not complied with the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961 as well as the provisions of Rule 17A(2) of Income Tax Rules, 1962 in spite giving sufficient opportunities, the undersigned is unable to draw any satisfactory conclusion about the genuineness of activities of the assessee and 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. 8. In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 02/12/2022 under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961 is hereby cancelled.” Printed from counselvise.com 4 ITA No.918/PUN/2025 5. Aggrieved, the assessee is in appeal before the Tribunal and all the grounds of appeal relate thereto. 6. The Ld. AR submitted that the Ld. CIT(E) non-compliance to the second notice cause notice was not intentional but occurred on account of certain unavoidable circumstances beyond the control of the assessee. He submitted that the assessee’s trustee who has been assigned the work of looking after the income tax affairs, is a 85 year old senior citizen and the assessee’s consultant who was looking after the impugned matter suffered from certain neurological issues at the relevant time which has been evidenced by his medical reports filed along with the affidavit of the trustee of the assessee. He therefore prayed that in the interest of justice an opportunity may be granted to the assessee to substantiate and present its case by furnishing all the detail/ documents sought for by the Ld. CIT(E). Accordingly, the matter may be set aside to the file of the Ld. CIT(E) to adjudicate the same afresh on merits after affording an opportunity of being heard to the assessee. 7. The Ld. DR had no objection the above request of the Ld. AR. 8. We have heard the Ld. Representatives of the parties and perused the records and the paper book filed by the Ld. AR on behalf of the assessee. We find that the Ld. CIT(E) has rejected the application of the assessee due to non- compliance to the second notice issued asking for certain clarification/document evidence as per the discrepancy noted by him including the lack of supporting evidence proving the genuineness of the charitable activities of the assessee trust. From the reasons stated by the Ld. Counsel for the assessee for non-compliance to the second notice issued by the Ld. CIT(E), in our view, the assessee had a reasonable cause for such-non compliance. It is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate its case by filing all the relevant supporting details/documents/ evidence before the Ld. CIT(E) to his satisfaction. Considering the totality of the facts and in the circumstances of the case enumerated above, we are of the view that it would be judicially expedient and in the interest of justice and fair play, if the matter is restored back to the file of Ld. CIT(E) to consider the assessee’s application afresh and decide the same on merits, in accordance with fact and law after allowing one final opportunity of being heard to the assessee and present its case. Needless Printed from counselvise.com 5 ITA No.918/PUN/2025 to say, the assessee shall provide the requisite support in terms of submitting the relevant details/documentary evidence as may be required/called upon on the appointed date without seeking adjournment under any pretext unless required for sufficient cause, failing which the Ld. CIT(E) shall be at liberty to pass appropriate order as per law. We direct and order accordingly. 9. In the result, the appeal of assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 30th July, 2025. Sd/- Sd/- (R.K. Panda) (Astha Chandra) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; दिन ांक / Dated : 30th July, 2025. रदि आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1. अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. दिभ गीय प्रदिदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 5. ग र्ड फ़ इल / Guard File. //सत्य दपि प्रदि// True Copy// आिेश नुस र / BY ORDER, िररष्ठ दनजी सदचि / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune Printed from counselvise.com "