SMILES FOUNDATION,SATARA V. CIT EXEMPTION PUNE, PUNE

ITA 379/PUN/2025

AI Insights

The case involves Smiles Foundation, which appealed against the decision of the CIT, Exemption, Pune, rejecting their application for registration under section 12AB of the Income Tax Act. The initial rejection was due to non-compliance with a notice requesting additional information, which the assessee failed to provide within the given timeframe. The Tribunal found that the assessee had initially complied with the CIT's request but failed to provide further information due to the short notice period. The Tribunal decided to set aside the CIT's order and remand the case for a fresh decision, emphasizing the need for a fair opportunity for the assessee to comply.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314372 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESHARI
• Assessee Lawyers: PRAFULL SURESH SHAHA
• Keywords: Condonation of delay; Reasonable cause

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.379/PUN/2025 Smiles Foundation, Shop No.2, 167/A170, Sushila Vasant Vihar, Mangalwarpeth, Satara- 415002. PAN : AASTS2069K Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 08.08.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act. 2. There is a delay of 104 days in filing of the present appeal. In this regard, the assessee has filed an application for condonation of delay along with an affidavit. We are satisfied with the explanation of the assessee that he was prevented by reasonable cause for not filing the present appeal within prescribed time limit. Ld. DR raised Assessee by : Shri Prafull Suresh Shaha Revenue by : Shri Ajay Kumar Keshari Date of hearing : 03.04.2025 Date of pronouncement : 06.05.2025 ITA No.379/PUN/2025 2 no serious objection to the condonation request made by the assessee. Accordingly, the delay of 104 days is condoned and the appeal is admitted for adjudication. 3. 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 09.02.2024. With a view to 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 30.04.2024 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 27.07.2024. Since the assessee has not furnished any explanation in reply to the above notice, Ld. CIT, Exemption, Pune rejected the application for registration and also cancelled the provisional registration granted to the assessee on 08.10.2023 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. ITA No.379/PUN/2025 3 4. 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 27.07.2024 asking for various information and other details and the compliance was required to be made on or before 05.08.2024. It was submitted that lots of information was already furnished by the assessee and again various information was required through the above notice dated 27.07.2024 and only seven days were provided to the assessee to furnish the desired information. Due to paucity of time, the assessee could not comply with the above notice. 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 Ld. CIT, Exemption, Pune. 5. Ld. DR appearing from the side of the Revenue relied on the order of Ld. CIT, Exemption, Pune and requested to confirm the same. 6. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper-book filed by ITA No.379/PUN/2025 4 the assessee. 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 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 appropriate order as per law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes. ITA No.379/PUN/2025 5 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 06th day of May, 2025. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 06th 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. "