BRAHMIN SABHA, JALGAON,JALGAON vs. COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE, PUNE

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ITA 639/PUN/2023Status: DisposedITAT Pune27 June 20234 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that Income Tax laws are welfare legislations and not penal. Considering the spirit of providing welfare, the assessee should be given one more opportunity to present its case and furnish the necessary details.

What were the facts?

The assessee-trust applied for registration under Section 12AB of the Income Tax Act. The CIT(Exemption) rejected the application due to the assessee's failure to furnish required details and documents to verify the genuineness of its activities and compliance with other laws.

What were the issues?

Whether the rejection of the application for registration under Section 12AB was justified without providing a final opportunity to the assessee to furnish required documents.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE „A‟ BENCHES :: PUNE

For Appellant: Smt. Deepa Khare, Adv
For Respondent: Shri Keyur Patel, CIT-DR
Hearing: 15/06/2023Pronounced: 27/06/2023

Brahmin Sabha Jalgaon, vs CIT (Exemption), Pune. Brahmin Sabha Baliram Peth, Jalgaon. PAN: AAATB 9398 N Appellant Respondent Assessee by : Smt. Deepa Khare, Adv. Revenue by : Shri Keyur Patel, CIT-DR Date of hearing : 15/06/2023 Date of pronouncement : 27/06/2023 O R D E R

Per PARTHA SARATHI CHAUDHURY, JM:

1.

This appeal preferred by the assessee emanates from the order of Commissioner of Income Tax (Exemption), Pune, dated 28.03.2023 as per the grounds of appeal on record.

2.

That, on perusal of the grounds of appeal, it is evident that solitary grievance of the assessee is the rejection of application for registration to the assessee-trust u/sec. 12AB of the Act.

2.1 That, on perusal of the order of ld. CIT(E), it is apparently clear that various details were called for from the assessee-trust to verify the genuineness of the activities of the assessee-trust and whether the assessee is complying with the requirement of any other laws in force at the relevant point of time and the objects of the trust. These details /PUN/2023 Brahmin Sabha Jalgaon were called for as per section 12AB(1)(b)(i) of the Act. These information/documents are basic requirement for ascertaining the overall nature of the activities performed by the assessee and whether genuinely the activities are public charitable in nature or not. The assessee submitted certain documents, however, various discrepancies have been noticed which were communicated to the assessee by the Department. However, irrespective of effective communication, these details were not furnished by the assessee and, therefore, it was not possible for the ld. CIT(E) to examine the ingredients of sec. 12AB i.e. to examine the genuineness of the activities of the assessee and whether assessee is complying with the other applicable laws in force at the relevant time and objects of the applicant trust. He therefore rejected the application for grant of registration of the assessee.

3.

We are of the considered view that it is a case where the application for registration of a trust was filed by the assessee, and for want of supporting evidences, the matter was rejected by the Department. It has to be appreciated that the purpose of the provisions for registration of trust u/sec. 12AB and granting of exemption u/sec. 80G, all these sections derives their spirit from the Directive Principles of State Policy enshrined in the Constitution of India. Since, the Govt. of India makes endeavor 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 /PUN/2023 Brahmin Sabha Jalgaon these charitable trusts benefits should flow to the entire society wherefrom various charitable activities, the entire society is benefited and the objectives of the Govt. of India in furtherance to the Directive Principles of State Policy are achieved. These provisions for the trust registration and granting of exemption u/sec. 80G enhance the socio economic welfare in the society. Furthermore, the Income Tax laws are welfare legislations and not penal in nature. Therefore, in the interest of justice and considering all the afore-stated observations, we are of the considered view that one more opportunity should be provided to the assessee to file the relevant details before the ld. CIT(E) and present their case on merits. In view thereof, we set aside the order of the ld. CIT(E) and remit the matter back to his file with the aforesaid direction and the ld. CIT(E) shall re-adjudicate as per law complying with the principles of natural justice. Grounds of appeal of the assessee are allowed for statistical purpose.

4.

In the result, appeal of the assessee stands allowed for statistical purpose. Order pronounced in open Court on 27th June, 2023.

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