SHRI BABANRAO NARAYAN DHOKALE SHIKSHAN V SANSHODHAN SANSTHA,PUNE vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE

We have heard rival contention and perused material placed on records and note that, the appellant vide Form No.10AB dt. 26/11/2022 applied to respondent u/c (iii) of section 12A(1)(ac) of the Act, thereby seeking regular/final registration u/s 12AB of the Act. We note that, upon appellants failure to annexe required & necessary documents as contemplated u/r 17A(2) of IT-Rules, the Ld. CIT(E) by notice dt. 03/03/2023 accorded an opportunity to make good the deficiency in the application. Following principle of natural justice, a further notice dt. 24/07/2023 was also served on the appellant calling upon to cure defects/discrepancies which came to notice from material submitted by the assessee. The appellant’s failure to address discrepancies has constrained the registering authority Ld. CIT(E) to reject the application. In absence of necessary explanation and submission of cogent evidences against discrepancies communicated, positive satisfaction about genuineness of activities of the appellant could not be arrived by the Ld. CIT(E), which resulted into rejection of application and cancellation of provisional registration granted earlier.

Per contra, the Ld. AR after solidifying facts of the case; has sufficiently spelt-out reasons behind appellant’s failure to attend discrepancies and thus prayed for one effective opportunity in the matter with an undertaking to comply with the direction of the Ld. CIT(E) without delay.

It has to be appreciated that the purpose of the provisions for registration of trust u/s 12A/12AB and granting of recognition u/s 80G of the Act, derives their spirit from Directive Principles of State Policy enshrined in the Constitution of India. The Govt. of India makes every endeavour to provide welfare to one and all in the society at large, and in view thereof the registration for public charitable trusts are given in order to ensure that through these charitable trusts benefits flows to entire society, thus the Directive Principles of State Policy are achieved. These provisions of registration u/s 12A/12AB and granting of recognition u/s 80G of the Act enhance socio economic welfare of the society.

Furthermore, Income Tax laws are welfare legislations and not penal in nature, therefore, in larger interest of ITAT-Pune Page 3 of 4 Shri Babanrao Narayan Dhokale Shikshan V Sanshodhan Sanstha. justice with forgoing observations, we are of the considered view that, the appellant deserves one more opportunity to make good the defects/shortcomings. In view thereof, without offering our comment on merits of the case, we set aside the impugned order and remit the matter back to the Ld. CIT(E) for de-nova consideration, preferably in two effective hearings to the appellant.

In result, the appeal is ALLOWED FOR STATISTCIAL PURPOSES. U/r 34 of ITAT Rules, order pronounced in open court on this Tuesday 05th day of December, 2023.