ADIMATA SHAKTI PRATISHTHAN, AMRAVATI,AMRAVATI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE, PUNE

We have heard rival contention and perused the material placed on records and note that, the appellant vide Form No.10AB dt. 31/01/2023 made an application to the respondent under clause (iii) of section 12A(1)(ac) of the Act thereby seeking regular/final registration u/s 12AB of the Act. The aforestated application by the impugned order is rejected by the registering authority Ld. CIT(E) for his failure to arrive at positive satisfaction about genuineness of activities of the assessee in the absence of evidences and compliance of discrepancies communicate.

We also note that, upon appellants failure to annexe required documents as contemplated u/r 17A(2)(k) of IT- Rules, the Ld. CIT(E) by notice dt. 13/04/2023 accorded an opportunity to make good the deficiency in the application, the assessee complied accordingly. After considering the submission of the appellant, certain discrepancies were noticed and for the reason by a notice dt. 07/07/2023 the appellant was again called upon to cure the defects and clarify the discrepancies; however this remained unattended for the good reason of non-receipt of notice by the appellant.

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 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 three effective hearings to the appellant assessee.

Before we depart, it necessitated us to place on record the oral statement of the Ld. AR made during the course of physical hearing that, appellant undertakes to attend the discrepancies communicated and ensure necessary compliance in accordance with law so has to assist this remand proceedings and also undertakes to adhere to timelines without seeking any unreasoned adjournment.

In result, the appeal is ALLOWED FOR STATISTCIAL PURPOSES. U/r 34 of ITAT Rules, order pronounced in open court on this Friday 13th day of October, 2023.