AKSHAR SANGEET FOUNDATION,PUNE, MAHARASHTRA vs. THE CIT (EXEMPTION), PUNE, PUNE, MAHARASHTRA

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.2048 & 2049/PUN/2025 Akshar Sangeet Foundation, Vs. CIT, Exemption, Pune. Flat No.C-203, Treasury Park, Sant Nagar, Padmavati, Pune- 411009. PAN : AAWCA8360L Appellant Respondent Assessee by : Shri C. H. Naniwadekar Revenue by : Shri Amol Khairnar Date of hearing : 25.03.2026 Date of pronouncement : 11.05.2026 आदेश / ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 24.06.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB u/s 12A(1)(ac)(vi)-ITEM(B) of the IT Act filed on 02.01.2025 and denying the application for approval in Form

2 ITA Nos.2048 & 2049/PUN/2025 No.10AB under sub-clause (B) of (iv) of first proviso to sub-section (5) of section 80G of the IT Act filed on 02.01.2025. ITA No.2049/PUN/2025 : 2. Facts of the case, in brief, are, that the assessee filed its application for registration in Form No.10AB u/s 12A(1)(ac)(vi)- ITEM(B) of the IT Act on 02.01.2025. With a view to verify the genuineness of 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, notices were issued by Ld. CIT, Exemption, Pune through ITBA portal requesting the assessee to upload certain information/clarification. In reply to the said notices, the desired information was furnished by the assessee. On verification of the information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies, therefore, issued another notice on 25.04.2025 and asked the assessee to furnish other details on or before 02.05.2025. In reply to the said notices, the desired information was furnished by the assessee. However, not being satisfied with the above reply, Ld. CIT, Exemption, Pune rejected

3 ITA Nos.2048 & 2049/PUN/2025 the application for registration u/s 12AB of the IT Act by observing as under :- “4. The assessee responded to the said notice and furnished the compliance on 17.05.2025. The assessee was specifically asked about the deduction claimed u/s 11 as per the financial statement. On verification, it is seen that the assessee stated that deduction was claimed as it was provisionally registered. The same is not accepted as the assessee has filed the present application u/s 12(1)(ac)(vi)(B) of the Income-lax Act, 1961. The extract of the said provision is reproduced herewith for ready reference: " 12(1)(ac)(vi)- in any other case, where activities of the trust or institution have (A).... (B) commenced and no income or part thereof of the said trust or institution has been excluded from the total income on account of applicability of sub-clause (iv) or subclause (v) or sub-clause (vi) or subclause (via) of clause (23C) of section 10, or section 11 or section 12, for any previous year ending on or before the date of such application, at any time after the commencement of such activities," 4.1 It can be thus seen that the provisions of said section applies to a case where activities of the trust or institution have 'commenced and no income or part thereof of the said trust or institution has been excluded from the total income on account of applicability of sub-clause (iv) or subclause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, or section 11 or section 12, for any previous year ending on or before the date of such application, at any time after the commencement of such activities.' In the light of said provision, the submission of the assessee trust has been verified. It is seen that the assessee trust has claimed deduction u/s 11 in its past AYs. Thus, the assessee's income pertaining to previous years has been excluded from the total income on account of applicability of section 11 which occurs after the commencement of such activities. 5. Therefore, said provisions of sec.12A(1)(ac)(vi)(B) of the Act are not applicable in the assessee's case. Thus, the undersigned is not satisfied about the fulfillment of conditions laid down in the section 12A(1)(ac)(vi)(B) of the Act and hence, the undersigned is left with no alternative but to reject the application.

4 ITA Nos.2048 & 2049/PUN/2025 6. In view of the above, the application filed by the assessee under section 12A(1)(ac)(vi)-ITEM(B) of the Income Tax Act, 1961 is hereby rejected.” 3. It is the above order against which the assessee is in appeal before this Tribunal. 4. We have heard Ld. Counsels from both the sides and perused the material available on record. In this regard, the assessee submitted that the deduction claimed u/s 11 of the IT Act for assessment year 2024-25 was surrendered and an updated return u/s 139(8A) of the IT Act was furnished after making payment of due taxes, however, Ld. CIT, Exemption, Pune has not considered this aspect and rejected the application for registration which is not justified. 5. Considering the totality of the facts of the case, & also in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the application for registration afresh and as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to furnish the

5 ITA Nos.2048 & 2049/PUN/2025 relevant documents, evidences and submissions in support of application for registration without taking any adjournment under any pretext, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal filed by the assessee in ITA No.2049/PUN/2025 is allowed for statistical purposes. ITA No.2048/PUN/2025 : 7. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(vi)-ITEM(B) to the file of Ld. CIT, Exemption, Pune for de novo adjudication, therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s 80G(5) as well to the file of Ld. CIT, Exemption, Pune being consequential, for de novo adjudication. 8. In the result, the appeal filed by the assessee in ITA No.2048/PUN/2025 is allowed for statistical purposes.

6 ITA Nos.2048 & 2049/PUN/2025 9. To sum up, both the above captioned appeals filed by the assessee are allowed for statistical purposes. Order pronounced on this 11th day of May, 2026. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; �दनांक / Dated : 11th May, 2026. Sujeet/DOC Sujeet Kumar Digitally signed by Sujeet Kumar Sharma Sharma Date: 2026.05.12 11:58:17 आदेश क� �ितिलिप अ�ेिषत / Copy of the Order forwarded to : +05'30' अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT, Exemption, Pune. 4. The Pr CIT/CIT concerned. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “A” ब�च, 5. पुणे / DR, ITAT, “A” Bench, Pune. गाड� फ़ाइल / Guard File. 6. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.