CREATIVE LEADERS FOUNDATION ,MUMBAI vs. CIT EXEMPTION, , PUNE

Keeping in view the fact that the applicant trust has been newly formed and due to paucity of trained staff/technical assistance the appeals within the period of limitation could not be filed which is a “sufficient cause” to our mind to condone the delay of 49 days and 45 days in both the appeals respectively, in view of the law laid down by Hon’ble Supreme Court in case of Collector Land Acquisition vs. MST Katiji & Others (supra) wherein it is held that “it is on contention of delay that when substantial justice and technical considerations are pitted against each other, the case of substantial justice deserves to be preferred, for the other side cannot claim to have a vested right in injustice being done because of a non deliberate delay”. So the application for condonation of delay is allowed and appeals are ordered to be registered and heard in the open court.

The assessee trust by filing aforesaid appeals sought to set aside the impugned orders dated 26.09.2022 & 30.09.2022 passed by the Commissioner of Income Tax (Exemption), Pune [hereinafter referred to as the CIT(E)] qua the assessment year 2022-23 on the grounds inter-alia that: Grounds of “1. Order passed by the Learned Commissioner of Income-Tax Exemption, Pune u/s 12AB(1)(b)(ii)(B) dated 26/09/2022 (DIN: ITBA/EXM/F/EXM45/2022-23/1045951718[1]] is Bad in low as: (a) it seems that the Judicial Mind has not been applied. (b) the Proper Reasonable Opportunity of being Heard has not been given. (c) Rejected for the want of basic documents and Note on the Activities of the Trust and therefore the provisional registration granted U/S 124(1)(ac)(vi) vide URN:AACTC4406GE20212 may please be restored. 2. The appellant craves to leave, add, alter, amend and/or delete any of the above referred grounds of appeal at the time of the hearing of the appeal.”

The assessee trust feeling aggrieved with the impugned orders passed by the Ld. CIT(E) has come up before the Tribunal by way of filing present appeals.

We have heard the Ld. Authorised Representatives of the parties to the appeal, perused the orders passed by the Ld. Lower Revenue Authorities and documents available on record in the light of the facts and circumstances of the case and law applicable thereto.

At the very outset, it is brought to the notice of the Bench by the Ld. A.R.s for the parties to the appeals that registration under section 12A and approval under section 80G have been declined by the Ld. CIT(E) on the sole ground that the assessee trust has not filed complete documents required under the statute and drew our attention towards para 3 of annexure annexed with the impugned order passed by the Ld. CIT(E), which is extracted as under: “3. It is seen that the assessee has not submitted the requisite details. Even on perusal of the application in form No.10AB, it is seen that the assessee has not submitted the basic documents which were required to be submitted along with the application viz. copy of instrument creating the trust or establishing the institution / document evidencing the creation of the trust or establishment of the institution (trust deed/MoA), notes on activities and copy of certificate of registration with Registrar of Companies or Registrar of Societies or Registrar of Public Trusts, as the case may be, etc.” & 119/M/2023 5 M/s. Creative Leaders Foundation

Now the assessee trust has furnished complete documents viz. audit financials for the year ending 31.03.2022, photographs of the charitable events to prove the activities of the assessee trust being carried out by the assessee trust, documents pertaining to creation of trust or establishing the institution etc. However, we are of the considered view that all these documents are required to be examined by the competent authority under the Act so as to arrive at the conclusion if registration under section 12A and consequential approval under section 80G is to be granted to the assessee trust.

In these circumstances, the impugned orders passed by the Ld. CIT(E) are set aside and remitted back to the Ld. CIT(E) to decide afresh after considering all the documents brought on record by the assessee trust by way of paper book running into 1 to 28 pages and by considering all other documents so required to be submitted by the assessee after providing opportunity of being heard to the assessee trust.

Resultantly, both the appeals filed by the assessee trust are hereby allowed for statistical purposes.