SHWAS FOUNDATION,NASHIK V. CIT EXEMPTION, PUNE

ITA 736/PUN/2025

AI Insights

The case involves two appeals by Shwas Foundation against the orders of the Commissioner of Income Tax (Exemptions), Pune, which rejected the applications for grant of registration under sections 80G and 12A of the Income Tax Act, 1961. The primary reason for rejection was the non-submission of the earlier registration certificate under section 12AB, which was required to be submitted along with the application for renewal. The Tribunal found that the Commissioner could have accessed the required document from their database and noted the assurance from the assessee to submit the document if given another opportunity.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360913 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHINAY KUMBHAR
• Keywords: Set aside
• Section: 12A

Judgement Text

" आयकर अपीलीय अिधकरण ”बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.736 & 753/PUN/2025 िनधाᭅरण वषᭅ / Assessment Years: 2024-25 Shwas Foundation, Makrand S Wagh, Row House No.3, Dyanganga Row House, Near Swami Samarth Kendra Kart, Nashik – 422008. Maharashtra. V s. The Commissioner of Income Tax Exemptions, Pune. PAN: AAVTS4322G Appellant/ Assessee Respondent / Revenue Assessee by None. Revenue by Shri Abhinay Kumbhar –CIT(DR) Date of hearing 07/05/2025 Date of pronouncement 19/05/2025 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: These two appeal filed by the assessee are directed against the separate orders of ld.Commissioner of Income Tax(Exemption), Pune rejecting the application for grant of registration u/s.80G and 12A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). For the sake of convenience, these two appeals were heard together and are being disposed of by this common order. The ITA Nos.736 & 753/PUN/2025 [A] 2 Assessee in ITA No.736/PUN/2025 has raised the following grounds of appeal : “1. On the facts and in the circumstances of the case and in law, the learned CIT, Exemption erred in rejecting the registration asked u/s 12AB of the IT Act for the reason that trust has not submitted the copy of earlier approval u/s.12AB. Your appellant submits that necessary details are available and can be submitted and therefore appellant prays before this Hon'ble Bench for restoring the matter back to the file of CIT (Exemption) for reconsideration of the application made in form no.10AB, and to submit the copy of such order.” 1.1 The Assessee in ITA No.753/PUN/2025 has raised the following grounds of appeal : “1. On the facts and in circumstances of the case and in law, the learned CIT, Exemption erred in rejecting the registration asked u/s 80(G)(5) of the IT Act for the reason that trust has not submitted the copy of earlier approval u/s.80G. Your appellant submits that necessary details are available and can be submitted and therefore appellant prays before this Hon'ble Bench for restoring the matter back to the file of CIT (Exemption) for reconsideration of the application made in form no.10AB, and to submit the copy of such order.” ITA No.736/PUN/2025 Findings & Analysis : 2. We have heard ld.DR for the Revenue and perused the material available on record. ITA Nos.736 & 753/PUN/2025 [A] 3 2.1 The ld.CIT(E) has rejected the assessee’s application as under : “7. The present application is filed by the assessee under clause (ii) of section 12A(1)(ac) of the Income Tax Act, 1961. The provisions of clause (ii) of section 12A(1)(ac) are related to application for renewal of regular registration of a trust or institution which is already having regular registration under section 12AB of the Act and the period of said registration is about to expire. 8. The assessee was specifically requested vide the initial notice to furnish the copy of order of regular registration under section 12AB of the Income Tax Act, 1961. Such copy is actually required to be furnished along with the application itself under the provisions of Rule 17A(2)(e) of the Income Tax Rules, 1962. However, the assessee has neither submitted the same along with the application nor in response to the notice issued in this regard. Thus the assessee failed to furnish the same. The copy of order submitted by the assessee is a copy of provisional registration under section 12AB read with clause (vi) of section 12A(1)(ac) of the Income Tax Act, 1961 and not a copy of regular registration under section 12AB read with clause (i) or clause (iii) of section 12A(1)(ac) of the Income Tax Act, 1961. 9. The non-submission of copy of order of regular registration under section 12AB of the Income Tax Act, 1961 establishes the fact that the prerequisite for application under clause (ii) of Section 12A(1)(ac) of the Income Tax Act, 1961 is not fulfilled in this case. Therefore, prima- facie it appears that the application is not maintainable. 10. In view of the above, the application filed by the assessee is treated as non-maintainable and hence, 'rejected' for statistical purposes ITA Nos.736 & 753/PUN/2025 [A] 4 without going into the merits of the case and no adverse inference is drawn against the assessee.” 2.2 Thus, it can be observed the ld.CIT(Exemption) has rejected the application of the assessee only because the assessee failed to file copy of the earlier registration certificate u/s.12AB of the Act issued by Ld.CIT(E). The earlier Certificate was also issued by Ld.CIT(E), thus the Ld Commissioner had access to the data base to get the copy of the registration already issued by ld.CIT(E). However, instead of accessing the same from the data base of the ld.Commissioner of Income Tax(Exemption) the Commissioner has asked the assessee to produce it. During the hearing before us the ld.AR for the Assessee assured that the assessee will file copy of the same before the ld.CIT(E) if one more opportunity is provided. Ld.DR for the Revenue has not objected to it. 3. In these facts and circumstances, we set aside the order of ld.CIT(E) to the Ld.CIT(E) for de-novo adjudication. The Ld.CIT(E) shall provide opportunity of hearing to the assessee and assessee shall file all relevant documents. 4. In the result, the Grounds of appeal raised by the assessee are allowed for statistical purpose. ITA Nos.736 & 753/PUN/2025 [A] 5 ITA No.753/PUN/2025 5. Since we have set aside the issue of Registration u/s.12A to ld.CIT(E), we also set aside the Order u/s.80G to CIT(E) for de- novo adjudication. The Ld.CIT(E) shall provide opportunity of hearing to the assessee and assessee shall file all relevant documents. 5.1 In the result, the Grounds of appeal raised by the assessee are allowed for statistical purpose. 6. To sum up, both appeals of the assessee are allowed for statistical purpose. Order pronounced in the open Court on 19 May, 2025. Sd/- Sd/- (VINAY BHAMORE) (DIPAK P.RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 19 May, 2025/ SGR आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. ITA Nos.736 & 753/PUN/2025 [A] 6 आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune. "