SHIV SMARAK BAHUUDDESHIY SAMITI,NANDURBAR vs. CIT (E), PUNE

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ITA 1727/PUN/2026Status: DisposedITAT Pune30 July 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the file of the CIT(Exemption) with a direction to grant one final opportunity to the assessee to submit the required details. The assessee was directed to comply without seeking adjournments, failing which the CIT(Exemption) could pass an appropriate order.

What were the facts?

The assessee's application for registration under Section 12A was rejected, and its provisional registration under Section 12AB was cancelled by the CIT(Exemption) due to non-compliance with statutory notices. The assessee claimed the non-compliance was due to an employee's mistake and sought an opportunity to submit the required documents.

What were the issues?

Whether the CIT(Exemption) was justified in rejecting the registration application and cancelling provisional registration solely on grounds of non-compliance without granting a final opportunity to the assessee.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, PUNE

Before: SHRI R.K. PANDA & MS. ASTHA CHANDRA

For Appellant: Shri R.P. Daware
For Respondent: Shri Amit Bobde, CIT-DR

आयकर अपीलीय अधिकरण “बी” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE

BEFORE SHRI R.K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1727/PUN/2026 Shiv Smarak Bahuuddeshiy Samiti, CIT (Exemption), Pune Shiv Smarak Bahuuddeshiy At Post Gangotri, Plot No. 1, Vikas Colony, Vs. Shahada Juna Mohida Road, Shahada, Nandurbar-425409 PAN : AAXTS6336A अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee by : Shri R.P. Daware Department by : Shri Amit Bobde, CIT-DR Date of hearing : 29-07-2026 Date of 30-07-2026 Pronouncement : आदेश / ORDER PER ASTHA CHANDRA, JM : This appeal filed by the assessee is directed against the order dated 06.11.2024 of the Ld. CIT(Exemption), Pune rejecting the application for grant of registration u/s 12A of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟) and cancelling the provisional registration granted earlier u/s 12AB of the Act.

2.

Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 30.06.2024 for registration of the trust under clause (iii) of section 12A(1)(ac) of the Act. With a view to verify the genuineness of the activities of the assessee and compliance to requirements of any other law for the time being in force by the trust / institution as are material for the purpose of achieving its objects, a notice was issued through ITBA portal on 14.08.2024 requesting the assessee to upload certain information / clarification. The assessee was also requested to submit the compliance by 29.08.2024. Since the assessee did not comply to the said notice, another opportunity was granted by the Ld. CIT(E) vide letter dated 17.10.2024 asking the assessee to explain as to why the application for registration u/s 12A should not be rejected and why the provisional

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registration granted earlier u/s 12AB should not be cancelled. Despite this letter/notice there was no compliance from the side of the assessee. Hence, due to consistent non-compliance to the statutory notices, the Ld. CIT(E) rejected the application for grant of registration u/s 12A of the Act and also cancelled the provisional registration granted earlier u/s 12AB by observing as under:

“7 In absence of the compliance to the above requirement, it is not possible to arrive at any conclusion about the genuineness of activities of the assessee and the compliance to the requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects. 8. It is clear from the above that the assessee was given sufficient opportunity to comply, but it has not complied to the same. It seems that the assessee is not having any supporting documents / evidence to submit. The assessee has failed to comply with the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961. Hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and the compliance to the requirements of any other law for the time being in force by the trust / institution as are material for the purpose of achieving its objects. Therefore, the undersigned has left no alternative but to reject the application. 9. In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 09/01/2022 under section 12AB read with section 12A(1)(ac)(vi) of the Income Tax Act, 1961 is hereby cancelled.”

3.

Aggrieved with such order of Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds:

“1. On the facts and in the circumstances of the case and in law, the learned Commissioner of Income Tax (Exemption), Pune ["CIT(E)"] has erred in rejecting the application for registration under section 12AB of the Income-tax Act, 1961. 2. The learned CIT(E) has further erred in cancelling the provisional registration granted earlier under section 12AB without establishing any violation of statutory provisions or recording proper satisfaction as required under law. 3. The learned CIT(E) has erred in rejecting the application merely on the ground of alleged non-compliance, without appreciating that the scope of section 12AB is limited to examining the objects of the trust and the genuineness of its activities. 4. The learned CIT(E) has failed to appreciate that non-submission of certain details, by itself, cannot be a ground for rejection of registration without making independent enquiries or verification.

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5.

The learned CIT(E) has erred in passing the impugned order in violation of the principles of natural justice, without providing adequate and effective opportunity of being heard to the appellant. 6. The learned CIT(E) has failed to appreciate that the appellant trust is engaged in charitable activities and no adverse finding has been recorded regarding the objects of the trust. 7. The learned CIT(E) has exceeded the jurisdiction vested under section 12AB by drawing adverse conclusions without bringing any cogent material on record. 8. The learned CIT(E) has erred in concluding that the genuineness of activities could not be verified, without making any independent inquiry or verification. 9. The impugned order is arbitrary, non-speaking and bad in law as it has been passed without proper application of mind to the facts of the case. 10. The appellant craves leave to add, amend, alter or withdraw any of the above grounds at the time of hearing. 11. The learned CIT(E) has failed to appreciate that the appellant trust is in possession of all the requisite documents, records and evidences as called for during the course of proceedings; however, due to inadvertent and bona fide reasons, the notices issued by the learned CIT(E) could not be complied with in time and the said details could not be produced. The appellant submits that it is now ready and willing to furnish all such details to substantiate the genuineness of its activities, and therefore, the impugned order deserves to be set aside in the interest of justice.”

4.

The Ld. Counsel for the assessee submitted that due to mistake on the part of the employee of the trust, the requisite details/documents could not be furnished. He submitted that given an opportunity the assessee is in a position to substantiate its case by filing all the relevant details/documents for deciding the issue afresh. He accordingly submitted that the matter may be restored to the file of the Ld. CIT(E).

5.

The Ld. DR, on the other hand, strongly objected to the arguments advanced by the Ld. Counsel for the assessee.

6.

We have heard the rival arguments made by both the sides, perused the order of the Ld. CIT(E) and the paper book filed on behalf of the assessee. It is an admitted fact that due to non-compliance to the notice(s) issued by the Ld. CIT(E) asking for certain details/documents, he rejected the application for grant of registration and also cancelled the provisional registration granted earlier. It is the submission of the Ld. Counsel for the

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assessee that due to mistake on the part of the employee of the trust, the details/documents could not be furnished. It is also his submission that given an opportunity the assessee is in a position to substantiate its case by filing all the relevant details/documents before the Ld. CIT(E). Considering the totality of the facts of the case and in the interest of justice, we deem it proper, to restore the issue to the file of the CIT(E) with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details to his satisfaction and decide the issue as per fact and law. The assessee is also hereby directed to submit the details as called for by the CIT(E) on the appointed date without seeking any adjournment under any pretext, unless required for a sufficient cause, failing which the CIT(E) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 30th July, 2026.

Sd/- Sd/- (R.K. Panda) (Astha Chandra) JUDICIAL MEMBER VICE PRESIDENT पुणे / Pune; दिन ांक / Dated : 30th July, 2026. रदि Ravi Kumar Digitally signed by Ravi Kumar Date: 2026.07.31 12:33:15 +05'30' आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : अपील र्थी / The Appellant. 1. प्रत्यर्थी / The Respondent. 2. 3. The Pr. CIT concerned. दिभ गीय प्रदिदनदि, आयकर अपीलीय अदिकरण, “बी” बेंच, 4. पुणे / DR, ITAT, “B” Bench, Pune. ग र्ड फ़ इल / Guard File. 5. //सत्य दपि प्रदि// True Copy// आिेश नुस र / BY ORDER,

सहायक पंजीकार/ Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune

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