PUNE INTERNATIONAL COACH FEDERATION CHAPTER,PUNE vs. COMMISSIONER OF INCOME-TAX, EXEMPTION, PUNE

This appeal preferred by the assessee emanates from the order of the Ld. CIT (Exemption) Pune dated 22.09.2020 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:

The brief facts in this case are that the assessee/applicant has made an online application in Form 10A for approval of the Trust/Institution u/s.12AA of the Act on 07.01.2020 under the category of Charitable Trust/Institution 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/applicant is registered under Companies Act, 2013 with registration number: U85320PN2018NPL175275 dated 10.03.2018. The application was carefully perused and considered along with its annexures. Thereafter, a letter was issued through ITBA portal to the assessee/applicant on 10.02.2020 requesting to upload certain other information/clarification by 27.02.2020 in order to process the application. However, the assessee/applicant has not responded to the said notice.

In this case, the grievance of the assessee is denial of registration u/s.12AA of the Act by the Ld. CIT(Exemption) vide order dated 22.09.2020. It is further the case of the assessee that an application for registration u/s.12AA of the Act was rejected by the Ld. Ld. CIT(Exemption) since requisite details/evidences as sought for, were not submitted by the assessee. However, this was for the reason beyond the control of the assessee. Non compliance as recorded in the order of the Ld. CIT(Exemption) cannot be attributed to deliberate or willful default of the assessee and it was due to compelling circumstances which were beyond the reasonable control of the assessee. That as found in the record, the assessee has stated as follows:

Total three notices were issued by the Department. The first notice issued on 27.02.2020 through ITBA system to call for the details. But this letter was never received by the appellant on email or through SMS i.e. it was just uploaded on the portal. It was then realized i.e. after the service of second notice that the earlier notice was corrupted and couldn't open.

The second notice was issued on 15.06.2020 and was communicated through SMS. This notice did not contain the details to be uploaded. But since Pune was again under complete lockdown due to pandemic, the office of the appellant company was closed. As such there were no office bearers to gather and submit the documents. An email was sent to CIT Exemption on 03.08.2020 in this regard. The email also stated that the earlier notice was corrupted and couldn't open and therefore a detailed list of documents to be uploaded was required. But there was no response to this e mail.

It is observed from record that one letter was issued on 15.06.2020 and another letter was issued on 10.09.2020 asking the assessee to upload documents and credible evidences of activities carried out by them. It is also observed that this was the period of pandemic being effective specially in Maharashtra, particularly in the city of Pune wherein most of the offices remain closed and were not functioning. In such scenario, non compliance by the assessee is definitely not a deliberate act. The assessee has acted bona- fide explaining reasons, more particularly that their office was closed and therefore, they were not able to upload the requisite details/evidences in the department‟s portal.

In the result, appeal of the assessee is allowed for statistical purposes.