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Income Tax Appellate Tribunal, “A” BENCH, PUNE
Before: SHRI INTURI RAMA RAO & SHRI PARTHA SARATHI CHAUDHURY
आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM:
This appeal preferred by the assessee emanates from the order of the Ld. CIT(Exemption), Pune dated 17.09.2020 passed u/s.12AA(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟) as per the following grounds of appeal on record:
“1. The CIT(Exemption) has erred in stating at Para 3 of his order that the opportunity was given to the appellant under letter dated 13.08.2020 to furnish the compliance.
2. The CIT(Exemption) has erred in concluding in Para 4 of his order that the applicant has not furnished the requisite details on the ITBA portal fully or complied to the notice dated 23.11.2019.
3. The CIT(Exemption) has erred in rejecting the application for grant of registration u/s.12AA (1)(b)(ii) of the Income Tax Act, 1961 without considering the facts on record and circumstances of the case and in law.
4. The appellant craves leave to add, to alter, to amend any of the grounds of appeal at or before the time of hearing of the appeal.”
Though the assessee has raised multiple grounds of appeal, the crux of the grievance of the assessee is with regard to rejection of application for grant of registration u/s.12AA of the Act to the assessee trust.
The brief facts of the case are that the assessee trust has made an online application in Form No.10A for approval of the Trust/Institution u/s.12AA of the Act on 01.11.2019 under the category of charitable trust/institution. The time limit for disposal of the application has been extended to 31.03.2021 as per CBDT Notification No.S.O.2033 (E) dated 24.06.2020 read with provisions of the Taxation and Other Laws ( Relaxation of certain Provisions) Ordinance 2020 No.2 of 2020 dated 31.03.2020. The assessee is registered under Bombay Public Trust Act, 1950 with registration No.E-8617/PUNE dated 09.09.2019.
The Ld. CIT(Exemption) vide Para 3 of his order held and observed as follows:
“3. Further, the submission uploaded by the applicant on ITBA portal in response to notice dated 23.11.2019 is not complete in as much as the applicant has not uploaded NOC from the owner of the premises, Copy of trust deed/MOA, Identity details of trustees/Directors, Supportive credible evidence in respect of activities carried out as required under the provisions of Section 12AA(1)(a) of the IT Act. As the time barring date was extended, the applicant was given an opportunity vide letter dated
15.06.2020 issued through ITBA portal, specifically requesting to upload the documents in this regard on the portal. However, the applicant has not responded to the same till date. Another opportunity was given to the applicant vide letter dated 13.08.2020 to furnish the compliance but the applicant has failed to comply. Thus, it is seen that the applicant has not uploaded required documents in spite of giving ample opportunities. In the absence of proper copy of the Trust Deed, the charitable nature of objects of the applicant cannot be verified.”
Therefore, it was the observation of the Ld. CIT(Exemption) that the assessee trust has not furnished the requisite details as called for by the Office of the Ld. CIT(Exemption) on the ITBA portal and since these evidences were not filed by the assessee, the Ld. CIT(Exemption) was not satisfied about the charitable nature of the objects as well as genuineness of activities of the trust and hence, request for grant of registration u/s.12AA of the Act was rejected.
The order of the Ld. CIT(Exemption) clearly spells out that he did not grant registration u/s.12AA of the Act to the assessee trust for want of details/evidences which were not filed by the assessee. That at the time of hearing, the Ld. AR of the assessee brought to our notice Para 3 of the Ld. CIT(Exemption)‟s order wherein it is evident that three opportunities were granted to the assessee for furnishing such evidences i.e. vide notices on 23.11.2019, 15.06.2020 and 13.08.2020. The Ld. AR submitted that they have complied with these notices and referring to Pages 20 to 21 of the paper book wherein the assessee has electronically filed reply to the notice dated 23.11.2019 and therein, it is evident that the assessee had submitted the requisite details/information on 12.12.2019. The Department has also issued acknowledgement to this effect with acknowledgement number.
That further in response to the notice dated 15.06.2020 issued by the Ld.CIT(Exemption), the assessee had filed its reply and similarly the acknowledgement number has been issued to the assessee by the Department which is annexed at Pages 33 to 34 of the paper book. However, we do not find the specific date of submission of the assessee in respect of this notice dated 15.06.2020 as filed in the paper book before us. Similarly the assessee was unable to show with evidence that whether they have responded to the third notice dated 13.08.2020 or not. That therefore, the assessee has filed evidence of reply to the first two notices dated 23.11.2019 & 15.06.2020 but could not bring on record any evidence whether they have filed reply or not on third notice dated 13.08.2020. That even in the second notice due date of submission is not there. That on the other hand, the Ld. CIT(Exemption) has categorically stated to have not received any reply from the assessee and therefore, as evident from his order, he was not able to record any satisfaction regarding the genuineness of the charitable activities of the assessee trust.
The assessee has placed reliance on the decision of the Pune Bench of the Tribunal in dated 08.12.2020. However, substantially the facts are different. That in the referred case, specific date was mentioned wherein the assessee had uploaded all the details that was called for by the Ld. CIT(Exemption). In the present case, there were three notices issued to the assessee wherein in respect of the two notices, the assessee had filed reply. The date of submission is there on record only in respect of the first notice dated 23.11.2019 and for the other notice in which reply was uploaded, due date of submission is not there. As regards the third notice dated 13.08.2020, the assessee was unable to substantiate through evidences whether they have actually filed reply or not. Therefore, the referred case law is not applicable to the present set of facts of the assessee. However, in the interest of justice, we are of the considered view that one more opportunity should be provided to the assessee wherein the assessee trust shall file requisite details as called for by the Ld. CIT(Exemption) and most important, the Ld. CIT(Exemption) shall, thereafter, record satisfaction in respect of those documents placed before him and re-adjudicate the matter for granting of registration u/s.12AA of the Act in respect to the assessee as per law complying with the principles of natural justice. In view thereof, we set aside the order of the Ld. CIT(Exemption) and restore the matter back to his file as indicated hereinabove.
In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 04th day of February, 2021.
Sd/- Sd/- INTURI RAMA RAO PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER ऩुणे / Pune; ददनाांक / Dated : 04th February, 2021 SB आदेश की प्रतिलऱपप अग्रेपिि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2.