VESSOMAG,PUNE V. CIT EXEMPTION, PUNE

ITA 2879/PUN/2024

AI Insights

The case involves Vessomag, an entity seeking registration under section 12AB of the Income Tax Act, which was initially granted provisional registration but later rejected by the CIT, Exemption, Pune due to non-compliance with certain requirements. The CIT issued notices to the assessee requesting additional information to verify the genuineness of its activities, which the assessee partially complied with. However, due to alleged discrepancies and non-compliance with the final notice, the CIT rejected the application for registration. The assessee appealed against this decision, arguing that they were not given a proper opportunity to respond to the final notice. The Tribunal, considering the circumstances, set aside the CIT's order and remanded the case for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474181 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESHARI
• Assessee Lawyers: DEEPA KHARE

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.2879/PUN/2024 Vessomag, S.No.20A2, Office No.891011, Uttam Market, Chinchwad Station, Pune- 411019. PAN : AAHAV2598Q Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 16.12.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act. 2. The appellant has raised the following revised grounds of appeal :- “1. The ld CIT Exemption erred in law and on facts in rejection of application for Registration u/s 12A(1)(ac)(iii) and cancelling provisional registration granted u/s 12A(1)(ac)(vi) dt 28.03.2023 without considering the facts and circumstances of the case. 2. The appellant prays for opportunity so as to explain its case. 3. The appellant craves leave to add, alter, modify or substitute any ground of appeal at the time of hearing.” Assessee by : Smt. Deepa Khare Revenue by : Shri Ajay Kumar Keshari Date of hearing : 04.03.2025 Date of pronouncement : 04.03.2025 ITA No.2879/PUN/2024 2 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 18.06.2024. 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 16.07.2024 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. On verification of said information, Ld. CIT, Exemption, Pune found certain discrepancies and issued another notice requesting the assessee to furnish further details/information in this regard on or before 04.12.2024. Since the assessee has not furnished any explanation in response to last notice dated 28.11.2024, Ld. CIT, Exemption, Pune rejected the application for registration by observing as under :- “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. ITA No.2879/PUN/2024 3 8. In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 28/03/2023 under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961 is hereby cancelled.” 4. It is the above order against which the assessee is in appeal before this Tribunal. 5. 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 28.11.2024 asking for various information and other details and the compliance was required to be made on or before 04.12.2024. It was submitted that lots of information was already furnished by the assessee and again various information was required through the above notice dated 28.11.2024 and only seven days were provided to the assessee to furnish the desired information. 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. ITA No.2879/PUN/2024 4 6. Ld. DR appearing from the side of the Revenue relied on the order of Ld. CIT, Exemption, Pune and requested to confirm the same. 7. We have heard Ld. Counsels from both the sides and perused the material available on record. We find that admittedly the assessee made compliance to the initial notices issued by the Ld. CIT, Exemption, Pune. It is the sole contention of the assessee that one more opportunity may kindly be provided to furnish reply before Ld. CIT, Exemption, Pune. In this regard, it was also contended before the Bench that somehow the notice was missed & the reply could not be filed by the assessee & 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 ITA No.2879/PUN/2024 5 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. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 04th day of March, 2025. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 04th March, 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. "