SONIYA HOLKAR CHARITABLE TRUST,NASHIK V. .CIT (E), PUNE

ITA 2096/PUN/2024

AI Insights

The case involves the Soniya Holkar Charitable Trust, which appealed against the orders of the Commissioner of Income Tax (Exemption), Pune, denying them registration under section 12A and approval under section 80G(5) of the Income Tax Act, 1961. The Trust had initially filed an application for registration, which was provisionally granted but later cancelled due to non-compliance with notices regarding discrepancies in their application. The Tribunal found that the Trust was not given a proper and fair opportunity to present its case and thus remitted the matter back to the CIT(E) for a thorough re-examination.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 24741 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Appeal Filed On: 11-10-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH KUMAR SINGH
• Keywords: Reasonable cause; Principle of natural justice; Charitable institution

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.2096 and 2097/PUN/2024 Soniya Holkar Charitable Trust, 08, Yashoda Ahaliyadevi Holkar Road, Gole Club, Tidke Colony, Nashik – 422 001, Maharashtra PAN : ABCTS0091G Vs. The CIT (Exemption), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeals at the instance of appellant are directed against the orders framed by ld. Commissioner of Income Tax (Exemption), Pune both dated 08.08.2024 denying grant of registration u/s.12A and approval u/s.80G(5) of the Income Tax Act, 1961 (‘the Act’). ITA No.2096/PUN/2024 : 2. Tersely, the facts of the case are that the appellant filed application on Form No.10AB under clause (iii) of section 12A(1)(ac) of the Act for grant of regular registration u/s.12A of the Act on 12.02.2024. In order to verify the genuineness of activities of the appellant, the ld. CIT (Exemption) issued a notice through ITBA portal on 03.05.2024 calling upon the appellant trust to file certain information/clarification. The appellant filed Assessee by : None Revenue by : Shri Manish Kumar Singh Date of hearing : 05.12.2024 Date of pronouncement : 09.12.2024 ITA Nos.2096 and 2097/PUN/2024 Soniya Holkar Charitable Trust 2 the requisite details. However, the ld.CIT(E) issued another notice to the appellant on 29.07.2024 pointing out certain discrepancies (para 4 of the impugned order). There was no compliance from the side of appellant to such notice. In the circumstances, the ld.CIT(E) rejected the application filed by the appellant, thereby cancelling the provisional registration granted to it by observing as under : “6. Since, the assessee has not furnished any explanation to the discrepancies communicated to it, it is presumed that the assessee has nothing to say in the matter. 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 16/02/2022 under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961 is hereby cancelled.” 3. Aggrieved appellant is in appeal before the Tribunal in the present appeal assailing the impugned order denying grant of registration u/s.12A of the Act. 4. When the matter was called for, none appeared on behalf of the appellant despite due service of notice of hearing. We therefore proceed to dispose of the appeal with the able assistance from the side of Ld. Departmental Representative exparte qua the appellant. 5. The ld. DR submitted that ample opportunities were given to the appellant and the appellant has not complied with any of ITA Nos.2096 and 2097/PUN/2024 Soniya Holkar Charitable Trust 3 the notices sent to it. The ld.CIT(E) was justified in rejecting the application filed by it. Therefore, the impugned order passed by the ld.CIT(E) should be confirmed. 6. We have heard the Ld. Departmental Representative and perused the relevant material on record. We have given our thoughtful consideration to the facts and circumstances of the case, lack of proper and fair opportunity having been granted to appellant trust and the principles of natural justice being fair to both the parties. Considering the same, we are of the view that the appellant was for sufficient cause prevented from prosecuting the appeal effectively, therefore deserves to be given one more opportunity to prove its case on merits. In view thereof, without commenting on merits, we set-aside the impugned order under challenge and remit back to the file of Ld. CIT(E) to the stage of its institution with a direction to adjudicate the subject matter denovo in accordance with law after providing three effective opportunities and pass a speaking order. Appellant is also directed to remain vigilant and make satisfactory compliance to the notice(s) of hearing issued by ld.CIT(E). It should refrain from taking adjournments unless otherwise required for reasonable cause. Effective grounds of appeal raised by the appellant are allowed for statistical purposes. ITA No.2097/PUN/2024 : 7. We have remanded the issue of grant of registration to the file of ld.CIT(E) for denovo adjudication. Therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s.80G(5) as well to the file of ld.CIT(E), being consequential, for denovo adjudication. ITA Nos.2096 and 2097/PUN/2024 Soniya Holkar Charitable Trust 4 8. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced on this 09th day of December, 2024. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 09th December, 2024. Satish आदेश क\u0002 \u0003ितिलिप अ\tेिषत / Copy of the Order forwarded to : 1. अपीलाथ\f / The Appellant. 2. \r\u000eयथ\f / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय \rितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "