SUNANDA RAJABHAU VAIDYA CHARITABLE TRUST,PUNE V. CIT EXEMPTION , PUNE

ITA 2327/PUN/2024

AI Insights

The case involves the Sunanda Rajabhau Vaidya Charitable Trust, which appealed against the order of the Commissioner of Income Tax (Exemption), Pune, denying the grant of registration under section 12A of the Income Tax Act, 1961. The Trust, a non-profit organization, had applied for registration to facilitate donations to various charitable organizations as per the will of its founder, Late Rajabhau Vaidya. The initial application was filed on 02.03.2024, and although the Trust responded to the first notice from the CIT (Exemption), it failed to address discrepancies pointed out in a subsequent notice, leading to the rejection of their application. The Tribunal, after hearing the Departmental Representative and reviewing the case, decided to remand the matter back to the CIT (Exemption) for a final opportunity for the Trust to comply and substantiate its application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24707 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESHARI
• Keywords: Opportunity of being heard; Charitable institution

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2327/PUN/2024 Sunanda Rajabhau Vaidya Charitable Trust, Flat No.9, 10, Smruti Apartment, Mahaganesh Colony, Paud Road, Kothrud, Pune 411 038, Maharashtra PAN : AANTS9394Q Vs. CIT (Exemption), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of appellant is directed against the order framed by ld. Commissioner of Income Tax (Exemption), Pune dated 12.09.2024 denying grant of registration u/s.12A of the Income Tax Act, 1961 ( in short ‘the Act’). 2. Succinctly, the facts of the case are that the appellant is stated to be a non profit organisation registered under the Maharashtra Public Trust Act formed with the object of offering donations to various charitable organisations, as stated in the will of Late Rajabhau Vaidya. It filed application on Form No.10AB under clause (iii) of section 12A(1)(ac) of the Act for grant of regular registration on 02.03.2024. In order to verify the genuineness of activities of the appellant, the ld. CIT (Exemption) issued a notice through ITBA portal on 09.05.2024 calling upon Appellant by : None Revenue by : Shri Ajay Kumar Keshari Date of hearing : 11.02.2025 Date of pronouncement : 13.02.2025 ITA No.2327/PUN/2024 Sunanda Rajabhau Vaidya Charitable Trust 2 the appellant to file certain information/clarification. The appellant filed the requisite details. However, the ld.CIT(E) issued another notice to the appellant on 05.08.2024 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. 3. Aggrieved appellant is now 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 appeal 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 ld. Departmental Representative exparte qua the appellant. 5. Ld. Departmental Representative submitted that ample opportunities were granted by the ld. CIT(E) and the appellant could not avail them, therefore, the order of the ld. CIT(E) be upheld. 6. We have heard the ld. Departmental Representative and perused the record placed before us. We find the appellant in response to the first notice issued by the ld. CIT(E) has filed the requisite details. However, when the ld. CIT(E) issued another notice asking the appellant to clarify regarding certain discrepancies found in the above submissions, the appellant failed to comply to the same. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to ITA No.2327/PUN/2024 Sunanda Rajabhau Vaidya Charitable Trust 3 restore the issue to the file of the ld. CIT(E) with a direction to grant one final opportunity to the appellant to substantiate its case by filing requisite details and decide the issue as per fact and law after giving due opportunity of being heard to the appellant. The appellant is also hereby directed to make its submissions, if any, before the ld. CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the ld. CIT(E) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the appellant are accordingly allowed for statistical purposes. 7. In the result, the appeals of the appellant is allowed for statistical purposes. Order pronounced on this 13th day of February, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 13th February, 2025. 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. "