VISHRANTI GRUH,AMRAVATI V. CIT(EXEMPTION), PUNE, PUNE

ITA 276/PUN/2025

AI Insights

The case involves Vishranti Gruh (City Club), an association of persons and a club, which appealed against the decision of the CIT(E), Pune, rejecting their application for permanent registration under section 12A(1)(ac)(iii) of the Income-tax Act, 1961. The CIT(E) had also cancelled the provisional registration previously granted. The Tribunal found that the assessee was not given a reasonable opportunity of being heard, which is a fundamental right in legal proceedings. Consequently, the Tribunal set aside the CIT(E)'s order and remanded the matter back for a fresh decision after providing a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469577 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2025
• 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
• Keywords: Set aside; Opportunity of being heard
• Section: 12A; 2

Judgement Text

"आयकर अपीलीय अधिकरण \"बी\" न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL \"B\" BENCH, PUNE BEFORE Dr. MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.276/PUN/2025 धििाारण वषा / Assessment Year: NA Vishranti Gruh (City Club), Opp. City Kotwali, Near Shyam Chowk, Amravati- 444601 Maharashtra PAN-AAATV3589M Vs CIT(E), Pune Appellant Respondent Assessee by : None Revenue by : Shri Ajay Kumar Keshari- CIT Date of hearing : 01.04.2025 Date of pronouncement : .04.2025 आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This appeal by the assessee is directed against the order dated 02.12.2024 passed by the Commissioner of Income Tax, Exemptions, [CIT(E)] u/s 12A(1)(ac)(iii) of the Income-tax Act, 1961. 2. The Assessee has raised following grounds of appeal:- 1. On the facts and in the prevailing circumstances of the case and in law, the learned CIT-Exemption, Pune has erred in rejecting the application in form no 10AB under clause (iii) of section 12A(ac) for permanent registration without giving reasonable opportunity of being heard. The order of the CIT Exemption, Pune may kindly be set aside and permanent registration u/s 2 ITA No.276/PUN/2025 12AB may kindly be granted with the restoration of provisional registration granted on 09-02-2022 u/s 12AC r.w.s. 12A(1)(ac)(vi). 2. On the facts and in the prevailing circumstances of the case and in law, the learned CIT-Exemption, Pune has erred in rejecting the application in form no 10AB under clause (iii) of section 12A(ac) for permanent registration in a summary manner, without considering the information and documents available on record viz., Income tax returns for AY 2022-23,2023-24,2024-25 and other mandatory required documents viz., Incorporation certificate and financial Statements filed along with application for permanent registration. The order of the CIT Exemption, Pune may kindly be set aside and permanent registration u/s 12AB may kindly be granted with the restoration of provisional registration granted on 09-02-2022 u/s 12AC r.w.s. 12A(1)(ac)(vi). 3. The Appellate craves the right to add, amend, modify, alter, revise, substitute, delete any or all grounds of the appeal, if deemed necessary at the time of hearing of the appeal. 3. A valid notice of hearing has been issued and served upon the assessee on their e-mail ID mentioned on Form No. 36. When the case was called for none appeared on behalf of the assessee. However, considering the fact that impugned order has been passed ex parte we proceed to adjudicate the appeal with the assistance of Ld. DR who also fairly accepted that the issue needs to be restored to the file of Ld. CIT(E). 4. We have heard Ld. DR and perused the record placed before us. The assessee is an association of persons and is a club and had filed Form No. 10AB for permanent registration u/s 12A(1)(AC)(iii) on 26.06.2024. The assessee has been issued provisional registration granted on 09.02.2022 u/s 3 ITA No.276/PUN/2025 12ACRWS12A(1)(AC)(vi). The assessee filed application on Form No. 10AB on 29.06.2024 for getting permanent registration, however few opportunities of hearing were granted by Ld. CIT(E) and on 27.11.2024 i.e. date of hearing, assessee seeked adjournment but Ld. CIT(E) rejected the adjournment application, rejected the application given on Form 10AB filed for permanent registration u/s 12A and also cancelled the provisional registration granted on 09.02.2022. 5. We observe that reasonable opportunity has not been granted to the assessee and in the larger interest of justice and being fair to both the parties, we deem it fit to restore the matter raised on merits back to the file of Ld. CIT(E) and set aside the impugned order and direct Ld. CIT(E) to provide reasonable opportunity of hearing to the assessee and then decide in accordance with law. However till Ld. CIT(E) decides the application of the assessee filed on Form 10AB for permanent registration u/s 12A of the Act, the provisional registration granted on 09.02.2022 shall be restored to its original place. Assessee is directed to remain vigilant and not to take adjournment. Grounds of appeal raised by the assessee are allowed for statistical purposes. 4 ITA No.276/PUN/2025 6. In the result appeal of the assessee is allowed for statistical purposes. Order pronounced on this day of April, 2025. (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; दििांक / Dated: April, 2025. Neeta आिेश की प्रधिधलधप अग्रेधषि / Copy of the Order forwarded to: 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. धवभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, \"बी\" बेंच, पुणे / DR, ITAT, \"B\" Bench, Pune. 5. गार्ा फाइल / Guard File. आिेशािुसार / BY ORDER, वररष्ठ धिजी सधचव / Sr. Private Secretary आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune "