SHRI JAI JHULELAL TRUST,SATARA V. THE COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE

ITA 2776/PUN/2024

AI Insights

The case involves Shri Jai Jhulelal Trust, which appealed against the decision of the CIT, Exemption, Pune, rejecting their application for registration under section 12AB of the Income Tax Act. The Trust had initially filed for registration on 29.06.2024, which was provisionally granted. However, upon further scrutiny, discrepancies were found in the information provided by the Trust, leading to the rejection of their application and cancellation of the provisional registration. The Trust contested that they were not given adequate opportunity to respond to the notices issued by the CIT, Exemption, Pune, particularly the last notice which allowed only seven days for compliance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315846 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESHARI
• Assessee Lawyers: DEEPA KHARE

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2776/PUN/2024 Shri Jai Jhulelal Trust, 572, Shaniwar Peth, Pajan Colony, Karad, Satara- 415110. PAN : AAUTS4456L Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 18.12.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act. 2. Facts of the case, in brief, are, that the assessee filed application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act on 29.06.2024. With a view to Assessee by : Smt. Deepa Khare Revenue by : Shri Ajay Kumar Keshari Date of hearing : 02.04.2025 Date of pronouncement : 16.05.2025 ITA No.2776/PUN/2024 2 verify the genuineness of activities of the assessee 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, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 05.08.2024 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. On verification of said information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies in the information furnished by the assessee and issued another notice on 26.11.2024. Not being satisfied with the explanation furnished by assessee in response to above notice, Ld. CIT, Exemption, Pune rejected the application for registration and also cancelled the provisional registration granted to the assessee on 31.12.2021 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the IT Act. It is this order against which the assessee is in appeal before this Tribunal. 3. Ld. AR appearing from the side of the assessee submitted before us that Ld. CIT, Exemption, Pune has not provided proper opportunity to the assessee and, therefore, the impugned order of Ld. CIT, Exemption, Pune is not justified. It was submitted that the last notice was issued on 26.11.2024 asking for various information ITA No.2776/PUN/2024 3 and other details and the compliance was required to be made on or before 03.12.2024. It was submitted that lots of information was already furnished by the assessee and again various information was required through the above notice dated 26.11.2024 and only seven days were provided to the assessee to furnish the desired information. Due to paucity of time, the assessee could not comply in full with the above notice and certain information remained to be furnished before Ld. CIT, Exemption, Pune. It was therefore contended before the Bench that if Ld. CIT, Exemption, Pune was not satisfied with the reply of the assessee, he could have provided one more opportunity to the assessee to furnish required details since the application was not getting time barred within next 25 days. Accordingly, it was requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune with a direction to provide at least one more opportunity to furnish the requisite documents/information as desired by him. 4. Ld. DR appearing from the side of the Revenue relied on the order of Ld. CIT, Exemption, Pune and requested to confirm the same. ITA No.2776/PUN/2024 4 5. We have heard Ld. Counsels from both the sides and perused the material available. We find that admittedly the assessee made compliance to the initial notice issued by the Ld. CIT, Exemption, Pune. It is the sole contention of the assessee trust that one more opportunity may kindly be provided to furnish reply before Ld. CIT, Exemption, Pune. In this regard, it was contended before the Bench that due to paucity of time the full reply could not be filed by the assessee trust & in such kind of situation, Ld. CIT, Exemption, Pune ought to have provided at-least one more opportunity to the assessee to substantiate his case. Considering the totality of the facts of the case, & also in the interest of justice and without going into merits of the case, we set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the application for registration afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and produce requisite documents/information/ submissions in support of the application for registration without taking any adjournment under any pretext, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass ITA No.2776/PUN/2024 5 appropriate order as per law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 16th day of May, 2025. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 16th May, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT, Exemption, Pune. 4. The Pr. CIT/CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "