Y D LIMAYE MEMORIAL EDUCATIONAL TRUST,PUNE V. COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE

ITA 2550/PUN/2024

AI Insights

The case involves Y.D. Limaye Memorial Educational Trust, a charitable trust focused on education, which appealed against the orders of the CIT (Exemption), Pune, denying them registration under section 12A and approval under section 80G(5) of the Income Tax Act, 1961. The CIT(E) had initially issued notices to the trust to verify the genuineness of its activities and later pointed out discrepancies in their submissions, to which the trust failed to respond adequately. The Tribunal found that while the trust had responded to the first notice, it did not comply with the second notice regarding discrepancies, leading to the CIT(E)'s decision to reject their application. The Tribunal, considering the circumstances and in the interest of justice, decided to remand the matter back to the CIT(E) for a de novo adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24715 (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
• Assessee Lawyers: KISHOR PHADKE
• 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 Nos.2550 and 2551/PUN/2024 Y.D. Limaye Memorial Educational Trust, F-901, 85, 1 Paud Road, Kothrud, Pune 411 038 Maharashtra PAN : AAATY9174B Vs. CIT (Exemption), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeals at the instance of appellant are directed against the orders framed by ld. Commissioner of Income Tax (Exemption), Pune both dated 08.10.2024 denying grant of registration u/s.12A and approval u/s.80G(5) of the Income Tax Act, 1961 ( in short ‘the Act’). ITA No.2550/PUN/2024 : 2. Tersely, the facts of the case are that the appellant is a Charitable Trust formed with the main object of providing education. It filed application on Form No.10AB under clause (iii) of section 12A(1)(ac) of the Act for grant of regular registration on 21.05.2024. In order to verify the genuineness of activities of the appellant, the ld. CIT (Exemption) issued a notice through ITBA portal on 24.06.2024 calling upon the appellant Appellant by : Shri Kishor Phadke Revenue by : Shri Ajay Kumar Keshari Date of hearing : 12.02.2025 Date of pronouncement : 13.02.2025 ITA Nos.2550 and 2551/PUN/2024 Y.D. Limaye Educational Trust 2 trust to file certain information/clarification. The appellant filed the requisite details. However, the ld.CIT(E) issued another notice to the appellant on 26.09.2024 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 by observing as under : “6. Since, the appellant has not furnished any explanation to the discrepancies communicated to it, it is presumed that the appellant has nothing to say in the matter. 7. Considering the above facts discussed in the show notice and discrepancies noticed and also that the appellant 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 appellant and compliance of requirements of any other law for the time being in force by the appellant as are material for the purpose of achieving its objects. 8. In view of the above, the application filed by the appellant is hereby rejected and the provisional registration granted on 28/02/2023 under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961 is hereby cancelled.” 3. Aggrieved appellant is in appeal before the Tribunal in the present appeal assailing the impugned order denying grant of registration u/s.12A of the Act. 4. Learned Counsel for the appellant at the outset submitted that the appellant had responded to the first notice issued by the CIT(E) by filing the various details. However, the appellant could not file the requisite details in response to second notice wherein the ld.CIT(E) has pointed out certain discrepancies. He submitted that in the interest of justice the appellant should be ITA Nos.2550 and 2551/PUN/2024 Y.D. Limaye Educational Trust 3 given an opportunity to substantiate its case by filing the requisite details before the ld.CIT(E). 5. The ld. DR on the other hand opposed the above submission made by the Ld. Counsel for the appellant and submitted that ample opportunities were granted by the ld. CIT(E) which the appellant failed to avail them, therefore, the order of the ld. CIT(E) be upheld. 6. We have heard both the sides 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. It is the submission of the Ld. Counsel for the appellant that in the interest of justice, the appellant should be given an opportunity to substantiate its case by filing the requisite details to the satisfaction of ld. CIT(E). Considering the totality of the facts of the case, the submissions made by ld. Counsel for the appellant and in the interest of justice, we deem it proper to 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. ITA Nos.2550 and 2551/PUN/2024 Y.D. Limaye Educational Trust 4 ITA No.2551/PUN/2024 : 7. We have remanded the issue of grant of registration to the file of ld.CIT(E) for denovo adjudication. Therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s.80G(5) as well to the file of ld.CIT(E), being consequential, for denovo adjudication. 8. In the result, both the appeals of the appellant are 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. "