SAMSHODHAN DNYAN VICHAR PRATISHTHAN, ,PUNE vs. COMMISSIONER OF INCOME-TAX, (EXEMPTIONS),, PUNE

The crux of the grievance of the assessee in this appeal before us is rejection of application for granting registration u/s.12AA of the Act.

The Ld. CIT(Exemption) in his order at Para 4 observed that on perusal of the submission uploaded on ITBA portal, it is seen that the assessee trust is claimed to be engaged in charitable activities such as to provide the learning community with a forum for engaging in multiple intellectual and educational pursuits. Though the trust has uploaded financial statements of last three years i.e. from A.Y.2016-17 to 2018-19 however, no submission has been uploaded in respect of details of charitable activities carried out/taken up in last three years along with proof and utilization of funds towards the charitable activities despite the fact that the trust is quite old as established in 1975 under BPT Act, 1950 vide registration number F-838/Pune dated 29.09.1975. Therefore, genuineness of the charitable nature of the activities is not established. This is the sole ground for which the Ld. CIT(Exemption) rejected the application of the assessee trust for registration u/s.12AA of the Act.

At the time of hearing, the Ld. AR of the assessee invited our attention to Page 18 of the paper book which is the letter from the Ld. CIT(Exemption) to the assessee trust has been given and therein at S. No.7 of the said letter, it is stated that “please attach a note on activities conducted since inception/during last three years.”

The Ld. DR submitted that in the present facts and scenario of the case, the matter may be restored back to the file of the Ld. CIT(Exemption) for proper examination of facts and evidences and adjudicate the matter afresh.

We have perused the case records and heard the rival contentions. We find the only ground for which the application for registration u/s.12AA of the Act of the assessee trust was rejected by the Ld. CIT(Exemption) that according to him, the assessee was unable to establish the genuineness of the charitable nature of the activities conducted by the assessee trust. At the same time, the Ld. AR tried to demonstrate referring various documents annexed in the paper book that these documents were submitted before the Revenue Authorities but still summarily they have rejected the application for registration u/s.12AA of the Act without giving proper opportunity of hearing to the assessee.

We have also heard the submission of the Ld. DR and she submitted that the matter may be restored back to the file of Ld. CIT(Exemption). That further, the Ld. DR submitted that from the order of the Ld. CIT(Exemption), it is not clear whether he has analyzed the evidences placed before him and

In view of the matter, we set aside the order of the Ld. CIT(Exemption) and restore the matter back to his file for adjudication after considering the detail evidences and relevant documents on record and then decide the issue with a speaking order regarding the genuineness of charitable nature of the activities which are conducted by the assessee trust.

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