SHRI PRINCE SHIVAJI MARATHA BOARDING HOUSE,PUNE vs. CIT(EXEMPTION), PUNE, PUNE

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ITA 2657/PUN/2026Status: DisposedITAT Pune14 October 20266 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, considering the rival submissions and the fact that the CIT(Exemption) had granted only one opportunity to the assessee, which the assessee failed to comply with, decided to restore both issues to the file of the CIT(Exemption). The Tribunal directed the CIT(Exemption) to grant one final opportunity to the assessee to substantiate its case by filing the requisite details to his satisfaction. The assessee was also directed to submit the details on the appointed date without seeking any adjournment. The CIT(Exemption) was given liberty to pass an appropriate order as per law if the assessee failed to comply. The grounds raised by the assessee were allowed for statistical purposes. The Tribunal held that since the issue of registration under Section 12A was restored, the issue of approval under Section 80G should also be restored for fresh adjudication with similar directions. The operative direction was to restore the matters to the CIT(Exemption) for fresh consideration with a final opportunity to the assessee.

What were the facts?

The assessee, Shri Prince Shivaji Maratha Boarding House, filed an application for registration under Section 12A of the Income Tax Act, 1961, on September 30, 2025, in Form No. 10AB. The Assessing Officer (AO), CIT(Exemption), Pune, issued a notice on December 29, 2025, through the ITBA portal requesting specific information to verify the genuineness of the assessee's activities and compliance with other laws. The assessee failed to furnish the requested details. Consequently, the CIT(Exemption) rejected the application for registration and cancelled the provisional registration granted earlier under Section 12AB. This also led to the refusal of approval under Section 80G of the Act. The assessee appealed these orders before the Income Tax Appellate Tribunal (ITAT), Pune Bench.

What were the issues?

1. Whether the CIT(Exemption) erred in rejecting the application for registration under Section 12A of the Income Tax Act, 1961, by providing only one opportunity to the assessee and for improper reasons, and whether the assessee should be granted a proper opportunity to substantiate its case? - Assessee's Contention: The CIT(Exemption) provided only one opportunity and the trust is an educational institute receiving state government grants, as evidenced by its financial accounts and provisional registration. The assessee seeks a proper and effective opportunity. - Revenue's Contention: The Ld. DR heavily relied on the order of the Ld. CIT(E). 2. Whether the CIT(Exemption) erred in cancelling the provisional registration granted under Section 12AB of the Act? - Assessee's Contention: Similar to the first ground, the assessee prays for the restoration of the provisional registration. - Revenue's Contention: Not recorded. 3. Whether the CIT(Exemption) erred in rejecting the application for approval under Section 80G of the Income Tax Act, 1961, on a technical reason, and whether the assessee should be granted another opportunity? - Assessee's Contention: The rejection was for a technical reason, and the assessee seeks another opportunity to obtain approval. The assessee missed checking a notice dated January 14, 2026. - Revenue's Contention: Not recorded.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

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

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

For Appellant: Shri S.N. Puranik
For Respondent: Shri Amit Bobde, CIT-DR

PER R.K. PANDA, VP :

The above two appeals filed by the assessee are directed against the separate orders dated 06.03.2026 and 24.03.2026 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 grant of approval u/s 80G of the Act respectively. For the sake of convenience, both these appeals were heard together and are being disposed of by this common order.

2.

Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 30.09.2025 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

2 ITA Nos.2657 & 2658/PUN/2026

force by the trust / institution as are material for the purpose of achieving its objects, a notice was issued through ITBA portal on 29.12.2025 requesting the assessee to upload certain information / clarification. Since the assessee did not furnish any details, the Ld. CIT(E) rejected the application for grant of registration and also cancelled the provisional registration granted earlier u/s 12AB of the Act by observing as under: “3. The information/details were called for under the provisions of section 12AB(1)(b)(i) of the Income Tax Act. 1961. These are the basic details required to ascertain the overall nature of the activities of the assessee and are directly relevant to the present proceedings. However, the assessee neither submitted explanation to the show cause notice till date nor availed the opportunity of being heard 4. Since, the assessee has not furnished any explanation to the discrepancies communicated to it, it is presumed that the assessee has nothing to say in the matter. 5. Considering the above facts discussed in the show notice and discrepancies noticed and also that the assessee has not complied with the provisions of section 12AB(1)(b)(i) of the Income Tax Act 1961 as well as the provisions of Rule 17A(2) of Income Tax Rules, 1962 in spite giving sufficient opportunities, the undersigned is not satisfied about the genuineness of activities of the assessee and compliance of requirements of any other law for the time being in force by the assessee as are material for the purpose of achieving its objects. 6. In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 02/12/2022 under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961 is hereby cancelled.”

3.

Since he rejected the application for grant of registration u/s 12A of the Act and cancelled the provisional registration granted earlier, he refused to grant approval u/s 80G of the Act.

4.

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

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1.

Commissioner of Income Tax (E) has erred in rejecting registration u/s 12A. Same may be directed to be granted by giving proper and effective opportunity. (CIT(E) issued only one notice). 2. CIT(E) has erred in cancelling provisional registration granted. Appellant prays to restore the same. 3. CIT (E) has erred in not giving proper opportunity and for improper reason. Trust is a educational institute receiving State Govt Grants is clear from final accounts attached with Application and Provisional Registration. 4. Appellant prays to add, alter, amend, take additional grounds, submit additional evidence, and/or withdraw the ground/s, during appellate Proceedings.

5.

The Ld. Counsel for the assessee at the outset submitted that the Ld. CIT(E) has given only one opportunity. He submitted that in the interest of justice, the assessee should be given an opportunity to substantiate its case by filing the requisite details before the Ld. CIT(E).

6.

The Ld. DR on the other hand heavily relied on the order of the Ld. CIT(E).

7.

We have heard the rival arguments made by both the sides, perused the orders of the Ld. CIT(E) and the paper book filed on behalf of the assessee. It is an admitted fact that the Ld. CIT(E) has given only one opportunity to the assessee to furnish the details which the assessee failed to do. However, no further opportunity was granted by the Ld. CIT(E). It is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. CIT(E) to his satisfaction. Considering the totality of the facts of the case and in the interest of

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justice, we deem it proper to restore the issue to the file of the Ld. CIT(Exemption) with the 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 Ld. CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the Ld. CIT(Exemption) 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.

ITA No.2658/PUN/2026

8.

Grounds raised by the assessee are as under: 1. CIT(E) has erred in rejecting registration u/s 80G(5) for Technical reason. Appellant prays for direction for granting registration giving another opportunity. 2. Appellant Prays to restore the case to CIT (E) as only one notice appears to have sent dated 14.01.2026 which Assessee missed to check. 3. Appellant prays to add, alter, amend, take additional grounds, submit additional evidence, and/or withdraw the ground/s, during appellate Proceedings.

9.

After hearing both the sides, we find the Ld. CIT(E) rejected the application for grant of approval u/s 80G by observing as under: “2. The application was carefully perused and considered along with its annexures. On verification of the details/documents submitted by the assessee along with its application, it is seen that the assessee has not furnished the copy of REGULAR APPROVAL in form No. 10AC under section 80G(5)(vi) read with clause (i) or clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 but submitted a copy of PROVISIONAL APPROVAL under section 80G(5)(vi) read with clause (iv) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961. 3. In view of the above, the application filed by the assessee is rejected.”

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10.

Since we have already restored the issue of grant of registration u/s 12A to the file of the Ld. CIT(E) for fresh adjudication, therefore, we restore the issue of grant of approval u/s 80G also to his file for fresh adjudication with similar directions. The grounds raised by the assessee are accordingly allowed for statistical purposes.

11.

In the result, both the appeals filed by the assessee are allowed for statistical purposes.

Order pronounced in the open Court on 14th October, 2026.

Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 14th October, 2026 GCVSR

आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘B’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Digitally signed by Sunil Kumar Sunil Kumar More More Date: 2026.10.15 17:23:08 +05'30' Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune

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S.No. Details Date Initials Designation 1 Draft dictated on 05.10.2026 Sr. PS/PS 2 Draft placed before author 06.10.2026 Sr. PS/PS Draft proposed & placed before the 3 JM/AM Second Member Draft discussed/approved by Second 4 AM/AM Member 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS Date on which the file goes to the Office 9 Superintendent 10 Date on which file goes to the A.R. 11 Date of Dispatch of order

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