VAKRATUND EDUCATION SOCIETY,KOLHAPUR V. CIT EXEMPTION, PUNE, PUNE

ITA 47/PUN/2025

AI Insights

The case involves the Vakratund Education Society, which appealed against the decision of the Commissioner of Income Tax (Exemption), Pune, rejecting their application for registration under section 12A of the Income Tax Act, 1961. The CIT(E) had rejected the application on the grounds of non-compliance with notices regarding discrepancies in the application form and the selection of an incorrect section code. The Tribunal found that the CIT(E) had not considered the merits of the case and decided to set aside the CIT(E)'s order and restore the matter for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772159 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT BOBDE
• Assessee Lawyers: PRAMOD S SHINGTE
• Keywords: Set aside
• Section: 12A

Judgement Text

" आयकर अपीलीय अधिकरण “बी” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI R.K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.47/PUN/2025 Vakratund Education Society, Main Road, Radhanagari, Kolhapur-416212 PAN : AABAV0021C Vs. CIT Exemption, Pune अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee by : Shri Pramod S Shingte Department by : Shri Amit Bobde Date of hearing : 12-08-2025 Date of Pronouncement : 26-08-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : The appeal filed by the assessee is directed against the order dated 16.12.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”] whereby he rejected the application of the assessee filed before him on30.06.2024 in Form No. 10ABunder section 12A(1)(ac)(ii) of the Income Tax Act, 1961 (the “Act”). 2. Briefly stated, the facts of the case are that on receipt of the assessee‟s application filed in Form No. 10AB u/s 12A(1)(ac)(ii) of the Act, considering the possibility that the assessee might have obtained provisional registration under section 12AB of the Act and while applying for regular registration the section code „01-Sub clause (ii) of clause (ac) of sub-section (1) of section 12A‟ might have got erroneously selected from the drop down menu in the present application instead of selecting section code „02-Sub clause (iii) of clause (ac) of sub-section (1) of section 12A‟, the Ld. CIT(E) issued notice on 13.08.2024 through ITBA portal which was duly served on the assessee requesting the assessee toverify its records and furnish a copy of order of regular registration u/s 12AB of the Act by 28.08.2024.As the assessee failed to furnish response Printed from counselvise.com 2 ITA No.47/PUN/2025 to the said notice, another show cause notice was given to the assessee on 16.10.2024 seeking compliance by 22.10.2024requesting it to show cause as to why the application should not be rejected and why the registration granted under section 12AB of the Act should not be cancelledin the event of failure to comply by the said due date.On verification of the details/documents submitted by the assessee, the Ld. CIT(E) noticed certain discrepancies which were communicated to the assessee vide issue of another notice dated 05.12.2024 seeking compliance by 12.12.2024. The said discrepancies are reproduced below : \"(i) t is seen that you have furnished such copy of Form 10AC dated 25/05/2022 which was cancelled by this office vide order dated 30/06/2023. In view of the above, it is seen that you are not having valid provisional registration under section 12AB of the Act. Hence, the prerequisite for application under the provisions of clause (iii) of section 12A(1)(ac) of the Income Tax Act, 1961 is not fulfilled. You are therefore requested to show cause as to why your application should not be rejected. Kindly furnish your explanation with credible evidences. (ii) The section code of your present application is related to renewal of regular registration for a trust/institution which is having regular registration u/s 12AB of the Act. Hence, you are requested to furnish the self certified copy of regular registration in Form 10AC/10AD (not provisional registration).\" 2.1 As the assessee failed to furnish any explanation to the discrepancies communicated to it vide the above notice, the Ld. CIT(E) concluded that prima facie it appears that prima-facie it appears that the assessee has inadvertently filed the present application as the pre-requisite for approval under clause (ii) of Section 12A(1)(ac) of the Act is not fulfilled in this case. The Ld. CIT(E) therefore proceeded to pass the impugned order rejecting the application of the assessee as non-maintainable without going into the merits of the case and drawing no adverse inference against the assessee by observing as under: “7. The assessee was specifically requested vide the initial notice to furnish the copy of order of regular approval 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 failed to furnish the same despite given sufficient opportunity. The pre-requisite for approval under clause (ii) of Section 12A(1)(ac) of the Income Tax Act is not fulfilled in this case. Therefore, prima-facie it appears that the assessee has inadvertently filed the present application. 8. In view of the above, the application filed by the assessee is treated as non- maintainable and hence, 'rejected' for statistical purposes without going into the merits of the case and no adverse inference is drawn against the assessee.” Printed from counselvise.com 3 ITA No.47/PUN/2025 3. Aggrieved, the assessee is in appeal before the Tribunal raising the solitary ground of appeal reproduced below: “1. On the facts and circumstances of the case and in law the Ld. CIT erred in not granting registration u/s 12AB on the ground of incorrect clause [clause (ii) of S.12A(1)(ac)] while filing Form 10AB, not appreciating the legal position that in the case of the appellant trust there is no' specific clause u/s 12A(1)(ac) under which it could apply and hence it had to choose the option made available by the on-line filing system on the income tax portal. The appellant craves leave to add to, amend, alter, delete or modify all or any of the above ground of appeal or raise a new ground of appeal before or at the time of hearing.” 4. The Ld. AR at the outset submitted that the Ld. CIT(E) has rejected the assessee‟s application for registration under section 12A of the Act on account of non-compliance of the notice issued by him pointing out the discrepancies mentioned therein. He submitted that the non-compliance before the Ld. CIT(E) was not intentional but it was owing to the mistake on the part of the employee of the trust. He therefore submitted that in the interest of justice, the assessee may be provided with an opportunity to present and substantiate its case before the Ld. CIT(E) by filing all the requisite details/ documents to his satisfaction and the matter may be restored back to his file for fresh adjudication on merits. 5. The Ld. DR, on the other hand, supported the order of the Ld. CIT(E) but had no objection if the matter is restored to the file of the Ld. CIT(E) for adjudication of assessee‟s application afresh. 6. We have heard the heard the Ld. Representatives of the parties, perused the order of the Ld. CIT(E) and the paper book filed on behalf of the assessee. We observe that the Ld. CIT(E) has rejected the assessee‟s application on ground of selection of wrong section code andfailure on the part of the assessee to furnish a copy of the regular registration u/s 12AB of the Act.Admittedly there was non-compliance on the part of the assessee. The Ld. Counsel for the assessee has requested for setting aside the matter to the file of the Ld. CIT(E) for fresh adjudication on merits after affording an opportunity of hearing to the assessee to explain and substantiate its case. Considering the totality of the facts and in the circumstances of the case, we deem it fit and proper, in the interest of justice, to set aside the impugned order of the Ld. CIT(E) and restore the matter to his file with a direction to decide the assessee‟s application for Printed from counselvise.com 4 ITA No.47/PUN/2025 grant of approval under section 12A of the Act afresh as per fact and law after affordingone final opportunity of hearing to the assessee. The assessee is also hereby directed to remain vigilant and make his submissions on the appointed date without seeking any adjournment under any pretext unless required for the sufficient cause, failing which the Ld. CIT(E) shall be at liberty to pass appropriate order as per law. We hold and direct accordingly. The solitary ground raised by the assessee is accordingly allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 26th August, 2025. Sd/- Sd/- (R.K. Panda) (Astha Chandra) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; दिन ांक / Dated : 26th August, 2025. रदि आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1. अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. दिभ गीय प्रदिदनदि, आयकर अपीलीय अदिकरण, “बी”बेंच, पुणे / DR, ITAT, “B” Bench, Pune. 5. ग र्ड फ़ इल / Guard File. //सत्य दपि प्रदि// True Copy// आिेश नुस र / BY ORDER, िररष्ठदनजीसदचि/ Sr. Private Secretary आयकरअपीलीयअदिकरण ,पुणे/ ITAT, Pune Printed from counselvise.com "