LOKATITA FOUNDATION ,SATARA vs. CIT EXEMPTION PUNE, CIT EXEMPTION PUNE

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ITA 2953/PUN/2025Status: DisposedITAT Pune21 May 2026AY 2025-264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal and set aside the order of the CIT(E) for de-novo adjudication. The CIT(E) was directed to provide an opportunity of hearing to the assessee and consider all documents submitted.

What were the facts?

The assessee, Lokatita Foundation, applied for registration under Section 12A of the Income Tax Act. The Commissioner of Income Tax (Exemption) rejected the application, citing that the foundation collected fees for courses and claimed them as donations, did not issue receipts, and lacked actual expenditure on charitable activities.

What were the issues?

Whether the activities of the assessee, including collecting fees for courses, are charitable in nature for the purpose of Section 12A registration. Whether the assessee was given a proper opportunity to explain its activities and submit evidence to the CIT(E).

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE

Before: MS. ASTHA CHANDRA & SHRI Dr. DIPAK P. RIPOTE

For Appellant: Shri Prakash B. Doiphode
For Respondent: Shri Anmol Khairnar, CIT-DR

PER Dr. DIPAK P. RIPOTE, A.M : This is an appeal filed by the assessee against the Order rejecting registration u/s 12A of the Income Tax Act 1961(Act) passed by the Commissioner of Income Tax (Exemption) dated 30/09/2025.

2.

There was delay of 33 days in filling appeal before this Tribunal. Assessee filed affidavit of director. We are convinced that there was sufficient cause for delay. Hence delay condoned.

3.

We have heard both the parties and perused the records. During the hearing Mr.Mahesh Patil, Director of assessee was also present and answered relevant questions.

4.

The Ld.CIT(A) has rejected the Application filed by the Assessee for Registraion u/s 12A of the Act, for following reasons mainly: ➢ assessee has collected fees for some courses related to Share Market, Share trading and claimed the fees collected as Donations. The fess ranged between Rs.40,000/ to Rs.70,000/-.

ITA No. 2953/PUN/2025

➢ Assessee has not issued any receipts to those participants. ➢ No actual expenditure on educational activities. ➢ Activities are not charitable in nature

5.

Submission of Ld.AR:

Ld.AR submitted that Commissioner of Income Tax(Exemption) has erred in rejecting the Application for registration u/s 12A of the Act. Ld.AR submitted that Objects of the assessee are charitable in nature. Ld.AR read out the objects which have been mentioned by CIT(E) in the order. Ld.AR filed copy of MOA of the assessee and explained the objects. Ld.AR submitted that all the objects are charitable in nature. During the pleading of Ld.AR, Mr.Patil Director of the Assessee sought our permission to explain the objects and activities of the assessee. We granted permission to Mr.Patil to make his submission. Mr.Patil submitted that aim of the assessee foundation is to create awareness among villagers or people staying in interior about financial literacy. Mr.Patil submitted that they conduct awareness camps in interior of Maharashtra . He also submitted that the Foundation had conducted Health Camp, Health awareness camp, distributed sanitary pads to rural girls. He submitted that the foundation had distributed Stationary to school children studying in ZP schools, distributed notebooks to poor students. Mr.Patil submitted that the activities of the Foundation were not properly explained to the CIT(E) by his Authorized Representative and he was under the impression that only AR can appear before the Commissioner. Mr.Patil also admitted that they have conducted some Courses by charging fees. He filed the details of the courses and fee structure. He submitted that Receipts were issued. He submitted that the Fee collected was used for the Charitable Activities like distributing Books, note books to students, distributing food items to poor, etc. Mr.Patil pleaded that if an opportunity is provided he will file all necessary documents before the Commissioner of Income Tax and explain the activities.

ITA No. 2953/PUN/2025

6.

Ld.DR submitted that he does not have any objection if the assessee is provided one more opportunity.

7.

We reproduce here under the scan copy of the document filed by Ld.AR regarding the courses conducted by the assessee :

Thus, it is an admitted fact that assessee is running certain paid courses. However, as per the submission of the assessee, the assessee has carried out activities like distributing Notebooks to needy students. Assessee filed evidence before us in the form of photographs. But these photographs were not admittedly filed before Ld.CIT(E). However, as submitted by Mr.Patil, the foundation could not explain properly the activities of the assessee to CIT(E), therefore, in the interest of justice, we set aside the order of the

ITA No. 2953/PUN/2025

CIT(E) to CIT(E) for de-novo adjudication. The CIT(E) shall provide opportunity of hearing to assessee. Assessee shall file all documents before CIT(E).

8.

Accordingly, the appeal filed by the assessee is allowed for statistical purpose.

Order pronounced in the open Court on 21st May, 2026

Sd/- Sd/- (MS. ASTHA CHANDRA) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/Pune; दिन ांक/Dated : 21-05-2026 TNMM

आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: अपील र्थी / The Appellant 1. प्रत्यर्थी / The Respondent 2. 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘A’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune

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