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Income Tax Appellate Tribunal, MUMBAI BENCH “B” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI RAHUL CHAUDHARY
PER OM PRAKASH KANT, AM
These appeals by the assessee are directed against two separate orders, both dated 31.10.2022 passed by the Ld. Commissioner of Income-tax (Exemptions), Pune (in short ‘the Ld. CIT’) rejecting the application of the assessee seeking
Braingyan Foundation 2 Braingyan & 3093/M/2022 ITA No. AY 2022-23 registrationu/s 12AA and u u/s 12AA and u/s 80G of the Income-tax Act, 1961 (in tax Act, 1961 (in short ‘the Act’) respectively respectively.
The grounds raised by the assessee in appeal (i.e. grounds raised by the assessee in appeal (i.e. ITA No. The grounds raised by the assessee in appeal (i.e. 12AA are 3092/Mum/2022) against rejection of registration u/s 12AA are 3092/Mum/2022) against rejection of registration u/s 12AA are reproduced as under: reproduced as under:
Order passed by the Learned Commissioner of Income 1. Order passed by the Learned Commissioner of Income 1. Order passed by the Learned Commissioner of Income-Tax, Exemption, Pune U/s 12AA Exemption, Pune U/s 12AA (1)(b)(1) dated 30/09/202 (1)(b)(1) dated 30/09/202 [DIN:ITBA/EXM/F/EXM45/2022 [DIN:ITBA/EXM/F/EXM45/2022-23/1046535722(1)] is Bad 23/1046535722(1)] is Bad in law as (a) it seems that the Judicial Mind has not been in law as (a) it seems that the Judicial Mind has not been in law as (a) it seems that the Judicial Mind has not been applied, (b) the Proper Reasonable Opportunity of being Heard applied, (b) the Proper Reasonable Opportunity of being Heard applied, (b) the Proper Reasonable Opportunity of being Heard has not been given & (c) Rejected only for the want of No has not been given & (c) Rejected only for the want of No has not been given & (c) Rejected only for the want of Note on the Activities of the Trust or Rebutting the same for its the Activities of the Trust or Rebutting the same for its the Activities of the Trust or Rebutting the same for its compliance and therefore the aforesaid Original Order passed compliance and therefore the aforesaid Original Order passed compliance and therefore the aforesaid Original Order passed may please be restored. may please be restored. 3. The grounds raised by the assessee raised by the assessee in appeal bearing appeal bearing ITA No. 3093/Mum/2022 challenging rejection u/s 80G 3093/Mum/2022 challenging rejection u/s 80G of the Act are reproduced as under: reproduced as under:
1. Order passed by the Learned Commissioner of Income 1. Order passed by the Learned Commissioner of Income 1. Order passed by the Learned Commissioner of Income-Tax, Exemption, Pune U/s 12AB rws 80G(5)(iii) dated 31/10/2022 Exemption, Pune U/s 12AB rws 80G(5)(iii) dated 31/10/2022 Exemption, Pune U/s 12AB rws 80G(5)(iii) dated 31/10/2022 (DIN:/TBA/EXM/F/EXM45/2022 (DIN:/TBA/EXM/F/EXM45/2022-23/1046535844(1)] is Bad 23/1046535844(1)] is Bad in law as (a) it seems that the Judicial Mind ha in law as (a) it seems that the Judicial Mind ha in law as (a) it seems that the Judicial Mind has not been applied, (b) the Proper Reasonable Opportunity of being Heard applied, (b) the Proper Reasonable Opportunity of being Heard applied, (b) the Proper Reasonable Opportunity of being Heard has not been given & (c) Rejected only for the want of Note on has not been given & (c) Rejected only for the want of Note on has not been given & (c) Rejected only for the want of Note on the Activities of the Trust or Rebutting the same for its the Activities of the Trust or Rebutting the same for its the Activities of the Trust or Rebutting the same for its compliance and therefore the aforesaid Original Order passed compliance and therefore the aforesaid Original Order passed compliance and therefore the aforesaid Original Order passed may please be restored ay please be restored.
We find that despite notifying espite notifying for the hearing none attended on none attended on behalf of the assessee. behalf of the assessee. On perusal of the record, we found that On perusal of the record, we found that written submission filed by the assessee are already on record, we written submission filed by the assessee are already on record, we written submission filed by the assessee are already on record, we
Braingyan Foundation 3 Braingyan & 3093/M/2022 ITA No. AY 2022-23 rejected the adjournment applicati rejected the adjournment application filed by the Ld Counsel of the the Ld Counsel of the assessee and proceeded to adjudicate the appeals ex-partee qua the assessee and proceeded to adjudicate the appeals ex assessee and proceeded to adjudicate the appeals ex assessee assessee assessee after after after hearing hearing hearing arguments arguments arguments of of of the the the ld. ld. ld. Department Department Department Representative.
As regards to rejection of registration u/s 12AA of the Act is As regards to rejection of registration u/s 12AA of the Act is As regards to rejection of registration u/s 12AA of the Act is concerned, the we find that the Ld. CIT find that the Ld. CIT observed as under: observed as under:
“2. The application was carefully perused and considered 2. The application was carefully perused and considered 2. The application was carefully perused and considered along with its annexures. Thereafter, certain informaiton / along with its annexures. Thereafter, certain informaiton / along with its annexures. Thereafter, certain informaiton / clarification was called for under the provisions of section clarification was called for under the provisions of section clarification was called for under the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 12AB(1)(b)(i) of the Income Tax Act, 1961 to verify the 1961 to verify the genuineness of activities of the assessee viz, date of genuineness of activities of the assessee viz, date of genuineness of activities of the assessee viz, date of commencement of activity, date of expiry of provisional commencement of activity, date of expiry of provisional commencement of activity, date of expiry of provisional registration, details of any registration, details of any registration, details of any other Law other other Law Law applicable for applicable for applicable for achievement of objectives and the proof of compliance of said achievement of objectives and the proof of compliance of said achievement of objectives and the proof of compliance of said Law, proof of identity of main trustees / directors, year f of identity of main trustees / directors, year f of identity of main trustees / directors, year-wise list of donations received, copies of annual accounts for the list of donations received, copies of annual accounts for the list of donations received, copies of annual accounts for the last 3 years or since inception whichever is later, note on last 3 years or since inception whichever is later, note on last 3 years or since inception whichever is later, note on activities carried out along with supporting credible evidence activities carried out along with supporting credible evidence activities carried out along with supporting credible evidence etc. vide notice etc. vide notice issued through ITBA portal on 25/08/2022. issued through ITBA portal on 25/08/2022. The assessee was requested to submit his compliance by The assessee was requested to submit his compliance by The assessee was requested to submit his compliance by 09/09/2022. The assessee was specifically informed that in 09/09/2022. The assessee was specifically informed that in 09/09/2022. The assessee was specifically informed that in the event of failure to comply by the due date, the matter will the event of failure to comply by the due date, the matter will the event of failure to comply by the due date, the matter will be decided based on material availab be decided based on material available on record. The notice le on record. The notice was duly served on the assessee through e was duly served on the assessee through e-portal / email. portal / email.
It is seen that the note on activities submitted by the 3. It is seen that the note on activities submitted by the 3. It is seen that the note on activities submitted by the assessee is general viz. conducting workshop for wellness assessee is general viz. conducting workshop for wellness assessee is general viz. conducting workshop for wellness student, couples, training workshop seminar kids, studen student, couples, training workshop seminar kids, studen student, couples, training workshop seminar kids, students, parents, help students/adults come out of depression and parents, help students/adults come out of depression and parents, help students/adults come out of depression and stress helps them use of social media to spread awareness stress helps them use of social media to spread awareness stress helps them use of social media to spread awareness etc. without giving any specific details of what actual activities etc. without giving any specific details of what actual activities etc. without giving any specific details of what actual activities were carried out, who were the beneficiaries, where the were carried out, who were the beneficiaries, where the were carried out, who were the beneficiaries, where the activity was c activity was carried out and without any supporting proof of arried out and without any supporting proof of his claim. In absence of any such tangible material in respect his claim. In absence of any such tangible material in respect his claim. In absence of any such tangible material in respect of activities being carried out, it is not possible to ascertain as of activities being carried out, it is not possible to ascertain as of activities being carried out, it is not possible to ascertain as Braingyan Foundation 4 Braingyan & 3093/M/2022 ITA No. AY 2022-23 to whether the activities are in line with the objects of the trust to whether the activities are in line with the objects of the trust to whether the activities are in line with the objects of the trust / institution. Hence, the undersigned is unable to draw any ion. Hence, the undersigned is unable to draw any ion. Hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the satisfactory conclusion about genuineness of activities of the satisfactory conclusion about genuineness of activities of the assessee.”
As regards to the appeal against rejection of registration u/s As regards to the appeal against rejection of registration u/s As regards to the appeal against rejection of registration u/s 12AA of the Act, we find that the Ld. CIT has called for certain e find that the Ld. CIT has called for certain e find that the Ld. CIT has called for certain information for verification of genuineness of the activity of the nformation for verification of genuineness of the activity of the nformation for verification of genuineness of the activity of the assessee vide notice issued through Income tice issued through Income-tax tax website portal date for submission of the same was dated 25/08/2022 and due 25/08/2022 and due-date for submission of the same was 09/09/2022 whereas the assessee 09/09/2022 whereas the assessee complied the same on complied the same on 13/09/2022, which is ich is evident from the written submission filed. evident from the written submission filed. According to the Ld. CIT(A) note on activity submitted by the According to the Ld. CIT(A) note on activity submitted by the According to the Ld. CIT(A) note on activity submitted by the assessee was very general without giving any specific details as who assessee was very general without giving any specific details as assessee was very general without giving any specific details as the beneficiaries and where the activities were carried out. We were the beneficiaries and where the activities were carried out. We the beneficiaries and where the activities were carried out. We hat Ld. CIT has a straightway passed the order rejecting the find that Ld. CIT has a straightway passed the order rejecting the hat Ld. CIT has a straightway passed the order rejecting the registration of the assessee registration of the assessee, without giving oppournity of being , without giving oppournity of being of the Ld. CIT is not justified. If, he heard. In our opinion, thisaction opinion, thisaction of the Ld. CIT is not justified desired to go through the specific activit go through the specific activities of the ass ies of the assessee, he for further information from the assessee. The should have called for further information from the assessee. The for further information from the assessee. The action of the Ld. CIT amounts to not providing adequate action of the Ld. CIT amounts to not providing adequate action of the Ld. CIT amounts to not providing adequate opportunity of being he opportunity of being heard to the assessee. Accordingly, we set to the assessee. Accordingly, we set aside the finding of the Ld. CIT and restore the matter back to him aside the finding of the Ld. CIT and restore the matter back to him aside the finding of the Ld. CIT and restore the matter back to him for deciding afresh after providing adequate opportunity of being for deciding afresh after providing adequate opportunity of being for deciding afresh after providing adequate opportunity of being eard to the assessee. The grounds raised in the appeal are heard to the assessee. The grounds raised in the appeal eard to the assessee. The grounds raised in the appeal accordingly allowed for accordingly allowed for statistical purposes.
Braingyan Foundation 5 Braingyan & 3093/M/2022 ITA No. AY 2022-23
As regard to appeal against rejection of r As regard to appeal against rejection of registration of the egistration of the assessee u/s 80G of the Act assessee u/s 80G of the Act is concerned, the Ld. CIT rejected the is concerned, the Ld. CIT rejected the for the reasons, firstly ,for non-filing specific details of application for the reason filing specific details of actual activities carried out and secondly, non-filing of Registration actual activities carried out filing of Registration certificate u/s 12AA or 10(23C) of the Act. On perusal of the written or 10(23C) of the Act. On perusal of the written or 10(23C) of the Act. On perusal of the written submission filed by the assessee, we find that the submission filed by the assessee, we find that the assessee has filed assessee has filed general information regarding the genuineness of the activity in general information regarding the genuineness of the activity in general information regarding the genuineness of the activity in respect of the notice dated 30/08/2022 issued by the Ld. CIT on f the notice dated 30/08/2022 issued by the Ld. CIT on f the notice dated 30/08/2022 issued by the Ld. CIT on Income-tax Portal. The learned CIT was not satisfied with the said tax Portal. The learned CIT was not satisfied with the said tax Portal. The learned CIT was not satisfied with the said information and according to him the assessee should have filed information and according to him the assessee should have filed information and according to him the assessee should have filed specific details of the activities carried out by it including name of specific details of the activities carried out by it including name of specific details of the activities carried out by it including name of the beneficiaries and the places where activity was carried out. But the beneficiaries and the places where activity was carried out. But the beneficiaries and the places where activity was carried out. But the Ld. CIT without issuing any further the Ld. CIT without issuing any further notice, notice, rejected the registration of the assessee under section 80G on this ground. The registration of the assessee under section 80G on this ground. The registration of the assessee under section 80G on this ground. The second reason for rejection reason for rejection of application u/s 80G of application u/s 80G by the learned CIT is non-registration registration under section 12AA of the Act ct. The appeal of the assessee against rejection of registration has already been set the assessee against rejection of registration has already been set the assessee against rejection of registration has already been set aside and restored back to the Ld CIT. aside and restored back to the Ld CIT. In our opinion, the action of In our opinion, the action of the Ld. CITof rejection of application u of rejection of application u/s 80G of the /s 80G of the Act, is in violation of the principle of natural of the principle of natural justice. Therefore, Therefore, in the interest of substantial justice, we feel it appropriate to restore this issue of substantial justice, we feel it appropriate to restore this issue of substantial justice, we feel it appropriate to restore this issue back to the Ld. CIT for back to the Ld. CIT for deciding afresh after providing adequate h after providing adequate opportunity of hearing nity of hearing to the assessee. The ground of appeal of the . The ground of appeal of the assessee is according allowed for statistical purposes. assessee is according allowed for statistical purposes. assessee is according allowed for statistical purposes.
Braingyan Foundation 6 Braingyan & 3093/M/2022 ITA No. AY 2022-23
In the result, In the result, both the appeals filed by the assessee filed by the assessee are allowed for statistical purposes. allowed for statistical purposes.