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Income Tax Appellate Tribunal, PUNE BENCHES “A” :: PUNE
Before: SHRI S.S.GODARA & DR. DIPAK P. RIPOTE
ORDER
PER DR. DIPAK P. RIPOTE, AM:
This appeal filed by the Assessee is directed against the order of ld.Commissioner of Income Tax (Exemption), Pune passed under section 12A(1) of the Act, dated 31.03.2023. The Assessee has raised the following grounds of appeal:
1. In the facts and circumstances of the case, the Ld.CIT(E) has erred in rejecting the application of the Appellant Trust u/s 12AB r.w.s 12A(1)(ac)(iii) terming the transaction of the Trust with other Trusts as non-genuine. Shree Agrasen Samiti [A]
2. In the facts and circumstances of the case, the Ld.CIT(E) has erred in cancelling the provisional registration granted to the Appellant Trust u/s 12AB r.w.s 12A(1)(ac)(vi) dated 27/10/2021.”
Submission of the ld.Authorised Representative : 2. The ld.AR submitted that assessee has been doing small charitable activities. The ld.AR submitted that assessee had filed all the details before the ld.CIT(Exemption), however, the ld.CIT(E) failed to consider the submission made by the assessee. The ld.AR invited our attention to the Screenshots of E-Proceedings response acknowledgment which were enclosed at page no.27, 28, 29, 30 and 32 of the paper book to demonstrate that assessee had submitted necessary documents. The ld.AR submitted that during the year, assessee had sold the land to another trust with the approval Charity Commissioner, dated 03.08.2021. The ld.AR filed copy of the order passed by the ld.Joint Chairty Commissioner under section 36(1)(c) of the Maharashtra Public Trust Act, 1950. The ld.AR submitted that said order was also filed before the ld.CIT(Exemption).
Submissions of Ld.Departmental Representative (ld.DR) : 3. The ld.Departmental Representative of the Revenue submitted that assessee has not filed any details before the ld.CIT(Exemptions) and therefore, ld.CIT(E) has rejected the assessee’s application as 2 Shree Agrasen Samiti [A] genuineness of the activities the could not be verified. The ld.DR also read out Clause-IV(1), (2), (3), (4) of the Memorandum of Association(MoA) of the Trust which were enclosed in Assessee’s paper book. The same are as under :
“1. Collect money through charity, business, or other means and to make him liable for the fulfillment of his purposes.
2. Buy, sell, lease, exchange property. To take on rent otherwise any administration or property or its rights as per any other requirement.
3. Constructing building, mangal karyalaya (marriage hall) etc. as required.
4. Creating other trusts for the fulfilment and progress of the objectives of the trust.
5. Celebrating mass marriage, Agrasen Jayanti, birth anniversary of young men, organizing works for public interest.”
3.1 The ld.DR therefore stated that the objects of the Trust are not charitable, hence assessee is not eligible for registration.
Findings and Analysis : 4. We have heard both the parties and perused the records. The assessee filed copy of Memorandum of Association at page no.51 to 3 Shree Agrasen Samiti [A] 65 of the paper book. The ancillary objects as mentioned in the Memorandum of Association(MoA) are as under :
“1. Collect money through charity, business, or other means and to make him liable for the fulfillment of his purposes.
Buy, sell, lease, exchange property. To take on rent otherwise any administration or property or its rights as per any other requirement.
Constructing building, mangal karyalaya (marriage hall) etc. as required.
Creating other trusts for the fulfilment and progress of the objectives of the trust.
5. Celebrating mass marriage, Agrasen Jayanti, birth anniversary of young men, organizing works for public interest.”
However, it is also observed that the ld.CIT(Exemption) has not discussed anything about the objects of the trust. It is also observed that ld.CIT(Exemption) has merely mentioned in the order that assessee failed to file the relevant details. However, before us, assessee has filed copies of the Screenshots to demonstrate that assessee had filed relevant details. In these facts and circumstances of the case, we set-aside the order of the ld.CIT(Exemption) to the ld.CIT(Exemption) for denovo adjudication. The ld.CIT(Exemption)
4 Shree Agrasen Samiti [A] shall discuss objects of the assessee, activities of the assessee trust and give categorical findings whether they are charitable or not! The ld.CIT(Exemption) shall provide opportunity to the assessee before passing the order. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.