GYANYOG EDUCATIONAL TRUST,PALGHAR vs. CIT (EXEMPTIONS), PUNE, PUNE

PDF · subscribers
ITA 1490/MUM/2025Status: DisposedITAT Mumbai22 April 2025AY 2025-263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, upon considering the concession made by the assessee's counsel regarding miscommunication and the request for an opportunity to comply, deemed it fit to remit the matter back to the file of the ld. CIT(E). The assessee is directed to furnish the requisite details. The ld. CIT(E) is further directed to consider these details and decide the issues afresh, in accordance with the provisions of the law, after providing the assessee with a reasonable and adequate opportunity of being heard. The Tribunal explicitly stated that the appeal was allowed for statistical purposes.

What were the facts?

The assessee, Gyanyog Educational Trust, filed an appeal against the order dated 17/12/2024 passed by the learned Commissioner of Income Tax (Exemptions), Pune (hereinafter referred to as the "ld. CIT(E)"). The ld. CIT(E) rejected the assessee's application for registration under section 12A of the Income Tax Act, 1961. The rejection was based on the assessee's failure to comply with a show-cause notice issued by the ld. CIT(E). The notice required the assessee to explain why its application should not be rejected and its registration under section 12AB be cancelled. The compliance was due on 03/12/2024, and subsequent requests for adjournment were also not fully complied with. The assessee's application was served via e-portal and email.

What were the issues?

1. Whether the learned CIT(E) was justified in rejecting the assessee's application for registration under section 12A of the Income Tax Act, 1961, on the grounds of non-compliance with the show-cause notice and failure to provide requisite details and opportunity of being heard. Assessee's Contention: The assessee's counsel submitted that due to a miscommunication between the trust and its counsel, who is based in Mumbai while the jurisdiction lies with the ld. CIT(E) in Pune, the requisite details could not be furnished. The assessee requested an opportunity to comply with the directions of the ld. CIT(E). Revenue's Contention: The judgment does not record any specific contentions from the revenue's side regarding the merits of the rejection. The revenue's position is reflected in the order of the ld. CIT(E) which rejected the application.

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, “G” BENCH, MUMBAI

Before: SHRI NARENDRA KUMAR BILLAIYA, HONBLE & SHRI SANDEEP SINGH KARHAIL, HONBLE

For Appellant: Shri Bhupendra Shah, A/R
For Respondent: Shri Dr. Kishor Dhule, CIT, D/R
Hearing: 22/04/2025Pronounced: 22/04/2025

PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 17/12/2024 by ld. CIT (Exemptions), Pune [hereinafter the “ld. CIT(E)"] who rejected the application of the assessee for registration u/s 12A of the Act.

2.

The ld. CIT(E) has given the following reason for rejecting the application:- “5. The assessee was requested to show cause as to why the application should not be rejected and why the registration granted under section 12AB of the Income Tax Act, 1961 should not be cancelled. The assessee was also given opportunity of being heard vide the said notice. The assessee was specifically informed that in the event of failure to comply by the due date, the application shall be liable to be rejected and the registration shall also be liable to be cancelled. The compliance to the said notice was due on 03/12/2024. The notice was duly served on the assessee through e-portal and email. The assessee responded to the said notice on 03/12/2024 and requested for an adjournment. The assessee vide notice dated 07/12/2024 further requested to furnish the compliance till 11/12/2024. However, the assessee neither submitted explanation to the show cause notice till date nor availed the opportunity of being heard.”

आयकर अपीलीय अधिकरण INCOME TAX APPELLATE TRIBUNAL

3.

Before us the ld. Counsel for the assessee stated that since the jurisdiction lies with ld. CIT(E), Pune and the Counsel was placed at Mumbai, there was mis-communication between the trust and the ld. Counsel and, therefore, the requisite details could not be furnished as sought by the ld. CIT(E) and if an opportunity is given, the assessee will comply with the directions of the ld. CIT(E).

4.

On such concession, we deem it fit to remit the matter to the file of the ld. CIT(E). The assessee is directed to furnish requisite details and the ld. CIT(E) is directed to consider the same and decide the issues afresh as per the provisions of the law after affording reasonable and adequate opportunity of being hearing to the assessee.

5.

In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 22nd April, 2025 at Mumbai. Mumbai, Dated 22/04/2025 *SC SPS आयकर अपीलीय अधिकरण INCOME TAX APPELLATE TRIBUNAL आदेश की प्रतिलिपि अग्रेषित/

More judgments on Section 12A

All 6,064 judgments and leading authorities on Section 12A →

Recent GST High Court judgments

Search GST case law →