SANMATI EDUCATIONAL SOCIAL WELFARE SOCIETY,MALEGAON, NASHIK vs. COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE, PUNE

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ITA 536/PUN/2023Status: DisposedITAT Pune25 May 2023AY 2024-253 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored both issues back to the CIT(Exemption) for re-deciding the matter afresh. The Tribunal noted there was no categorical finding doubting the assessee's objectives or activities on merits.

What were the facts?

The assessee society's applications for registration under Section 12AA and Section 80G of the Income Tax Act were rejected by the CIT(Exemption) ex-parte. The assessee failed to provide necessary details despite multiple opportunities.

What were the issues?

Whether the CIT(Exemption) was justified in rejecting the applications ex-parte without considering the merits of the assessee's objectives and activities.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “B” : PUNE

Before: SHRI SATBEER SINGH GODARA & DR. DIPAK P. RIPOTE

Hearing: 24.05.2023Pronounced: 25.05.2023

ORDER PER SATBEER SINGH GODARA, J.M. :

These assessees twin appeals I.T.A.Nos.536 & 537/PUN./2023 arise against the CIT (Exemption), Pune’s Din Nos.ITBA/EXM/F/EXM45/2022-23/1050395605(1) & Notice dated 03.03.2023 and 1051064678(1), dated 21.03.2023, involving proceedings u/sec.12AA and sec.80G of the Income Tax Act, 1961 (in short “the Act”); respectively.

Cases called twice. None appears at assessee’s behest. It is accordingly proceeded ex-parte.

2 ITA.No.536 & 537/PUN./2023 2. We notice with the able assistance coming from the Revenue side that the CIT(E) both orders under challenge rejecting the assessee’s registration u/sec.12AA and 80G of the Act, respectively have been passed ex-parte after holding that it had failed to file all the necessary details in respect thereof. Learned CIT-DR invited our attention to the CIT(E)’s former order in paras 2 and 2.1 that the latter had afforded ample opportunities of hearing to the assessee to do the needful by way of filing all clarifications regarding date of commencement of activity, expiry of date of registration, objections, compliance thereof, main trustees/directors, year- wise list of donations with donors, notes on activities, business undertakings etc. Mr. Garg strongly argued that we ought to confirm the learned CIT(E)’s both the orders under challenge rejecting sec.12AA as well as sec.80G registration.

3.

We have given our thoughtful consideration to the assessee’s pleadings and Revenue’s above stated arguments. We are of the opinion that larger interest of justice would be met in case the learned CIT(E) re-decides the issue(s) afresh within two effective opportunities of hearing. We make it clear that we are restoring both these issues back to the CIT(E) in light of the fact that there is no categorical finding in either of these two orders doubting the assessee’s objectives/activities, if any on merits. We, therefore, make it clear that in the 3 ITA.No.536 & 537/PUN./2023 instant remand proceedings, the assessee would be entitled only for two effective opportunities at it’s own risk and responsibility. Ordered accordingly. 4. Delay of one day is condoned in larger interest of justice.

5.

These assessee’s twin appeals are allowed for statistical purposes. A copy of this common order be placed in the respective case files.

Order pronounced in the open Court on 25.05.2023.

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