VIDYARTHI VIKAS MANDAL,SANGLI V. THE COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE

ITA 2775/PUN/2024

AI Insights

The case involves Vidyarthi Vikas Mandal, an organization based in Maharashtra, which appealed against the decision of the Commissioner of Income Tax (Exemption), Pune. The Commissioner had rejected the assessee's application for approval under section 80G(5) of the Income Tax Act, 1961, due to non-compliance with the required documentation and discrepancies noted during the review process. The Tribunal noted that a related appeal concerning the rejection of the assessee's application for regular registration under section 12A was set aside for fresh adjudication, and thus, decided to remit this issue as well for a comprehensive re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472569 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Other Referred Cases: ITA 2090/Pun/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESHARI
• Assessee Lawyers: DEEPA KHARE
• Keywords: Set aside; Opportunity of being heard
• Section: 12A; 10(23C); 80G

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. 2775/PUN/2024 Vidyarthi Vikas Mandal, Vivekand Hospital, Bomnoli, Tal-Sangli, Maharashtra – 416436. PAN: AADAV0886B Vs. The Commissioner of Income Tax(Exemption), Pune. अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee by : Smt. Deepa Khare, Department by : Shri Ajay Kumar Keshari – CIT Date of hearing : 20-02-2025 Date of Pronouncement : 28-02-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : The appeal filed by the assessee is directed against the order dated 12.12.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”] whereby he rejected the application of the assessee filed before him on 29.06.2024 in Form No. 10AB under clause (iii) of first proviso to sub- section (5) of section 80G of the Income Tax Act, 1961 (the “Act”). 2. The assessee has raised the following grounds of appeal :- “1. The Ld. CIT Exemption erred in law and on facts in rejection of application for Approval u/s 80G(5) 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.” 3. Briefly stated, the facts of the case are that on perusal of the assessee’s application along with annexures thereto, with a view to verify the genuineness of activities of the assessee trust and fulfillment of conditions specified in clauses (i) to (v) of section 80G(5) of the Act, the Ld. CIT(E) issued a notice through ITBA portal on 10.08.24, which was duly served via e-portal and email, requesting the assessee to upload certain basic details/ information/clarification by 27.08.2024. On verification of the details / 2 ITA No.2775/PUN/2024 documents submitted by the assessee, the Ld. CIT(E) noticed certain discrepancies (listed out in para 4 of his order) which were duly communicated to the assessee vide show cause notice dated 29.11.2024. The assessee was asked to show cause as to why the assessee’s application should not be rejected and why the provisional approval granted under section 80G(5) of the Act should not be cancelled in the light of the said discrepancies. The said show cause notice was duly served upon the assessee through e-portal and email, the compliance of which was due by 06.12.2024. However, the assessee neither furnished any explanation nor availed the opportunity of hearing granted by the Ld. CIT(E). In the absence of any information furnished by the assessee, the Ld. CIT(E) presumed that the assessee trust has nothing to say in the matter. He, therefore found himself unable to draw any conclusion about the genuineness of the activities of the assessee trust and fulfillment of conditions specified in clauses (i) to (v) of section 80G(5) of the Act. He further noticed that the assessee is neither regularly registered under section 12AB read with section 12A(1)(ac)(i)/(iii) of the Act nor having regular approval under section 10(23C) of the Act and that the assessee’s case does not fall within the purview of exclusions provided under proviso to clause (i) of section 80G(5) of the Act. Further, it is also not a regimental fund/ non-public fund and not having approval under section 10(23AA) of the Act, therefore the condition (i) of section 80G(5) of the Act is also not fulfilled by the assessee. He, therefore, rejected the application for registration filed by the assessee and also cancelled the provisional approval granted on 19.01.2023 u/s 80G(5)(vi) read with clause (iv) of first proviso to section 80G(5) of the Act . 4. Aggrieved, the assessee is in appeal before the Tribunal and all the grounds of appeal relate thereto. 5. The Ld. AR submitted the assessee filed compliance to the first notice but the second and the final notice issued by the Ld. CIT(E) listing out the discrepancies noticed by him could not be compiled with. However, the non- compliance was not intentional. The Ld. AR also brought to the notice of the bench the appeal of the assessee (ITA 2090/Pun/2024) that was filed challenging the rejection of application for regular registration under section 12A of the Act and the Tribunal in the said appeal vide its order dated 09.12.2024 has set aside the matter to the file of Ld. CIT(E) for denovo adjudication. The Ld. AR therefore prayed that he present issue may also be set aside to the file of the Ld. CIT(E) being consequential. 6. The Ld. DR fairly conceded to the above request of the Ld. AR 3 ITA No.2775/PUN/2024 7. We have heard the Ld. Representative of the parties and perused the material available on record. Before us the Ld. AR has submitted that given an opportunity the assessee is in a position to substantiate its case before the Ld. CIT(E) by filing the requisite details / explanation to the queries / discrepancies raised by him. We have also perused the order of the coordinate bench of the Tribunal in ITA No. 2090/PUN/ 2024 (supra), a copy of which was placed on record before us and find that the issue pertaining to application for regular registration under section 12A of the Act has been set aside to the file of the Ld. CIT(E) for fresh adjudication. Therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval under section 80G(5) of the Act raised by the assessee in the present appeal also to the file of the Ld. CIT(E), being consequential, for denovo consideration and adjudication. The Ld. CIT(E) shall decide the issue in accordance with facts and law after providing due opportunity of being heard to the assessee. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 8. In the result, the appeal of assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 28th February, 2025. Sd/- Sd/- (R.K. Panda) (Astha Chandra) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; दिन ांक / Dated : 28th February, 2025. 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, / / True Copy / / िररष्ठ दनजी सदचि / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune 4 ITA No.2775/PUN/2024 S. No Details Date Initials Designation 1 Draft dictated on 2 Final Draft placed before author 3 Draft proposed & placed before the Second Member 4 Draft discussed/approved by Second Member 5 Approved Draft comes to the Sr. PS/PS 6 Kept for pronouncement on 7 Date of uploading of Order 8 File sent to Bench Clerk 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order "