HOTFUT FOUNDATION ,PUNE vs. CIT EXEMPTION , PUNE

When the case called for, none appeared on behalf of the appellant despite due service of notice of hearing. Even on the previous date of hearing, i.e. 21.08.2025 and 03.11.2025, there was no appearance from the side of appellant. We therefore proceed to adjudicate the appeal with the assistance of ld. DR and the available records.

The learned CIT, Exemption, Pune; erred in law and on facts in not granting registration under section 12AB of the Income Tax Act, 1961 to the appellant by stating that appellant is sharing revenue with the academies with which it collaborates, thereby considering the activities of the appellant as of commercial nature.

The learned CIT, Exemption, Pune; erred in law and on facts in not granting registration under section 12AB of the Income Tax Act, 1961 to appellant without raising discrepancies/issues relating to details of charitable activities carried out in show cause notice and thereby rejecting the registration of the appellant on the basis of those discrepancies/issues.

Appellant craves leave to add, alter, clarify, explain, modify, delete any of the grounds of appeal, and to seek any just and fair relief.”

Ld. DR supported the order of ld.CIT(E).

We have heard the ld. DR and perused the record placed before us. We observe that the appellant is a Charitable Organisation and it filed the application for regular registration u/s.12A(1)(ac)(iii) of the Act on 29.09.2024. Appellant has been granted provisional registration vide order dated 21.07.2023. The main object of the appellant is to promote Sports, Athletics, Games, Fitness, Nutritional Awareness within India and abroad etc. After the application for regular registration on Form No.10AB, certain details were called for by ld.CIT(E) to which compliances was made by uploading documents on 29.09.2024, 05.11.2024 and 05.02.2025. Ld.CIT(E) vide impugned order has refused to grant registration on account of delay in filing the application, commercial nature of activities and absence of charitable activity. We observe that the appellant has raised Ground Hotfut Foundation

Considering the fact that appellant has complied to most of the notices issued by ld.CIT(E), we deem it appropriate that in the interest of justice and being fair to both the parties, assessee deserves one more opportunity. Therefore, the issues raised in the instant appeal are remitted back to the file of ld.CIT(E) for necessary adjudication. Needless to mention that ld.CIT(E) shall afford reasonable opportunity to the appellant in the set aside proceedings. Appellant is directed to update latest email id and contact detail on ITBA portal. Appellant is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and ground of appeal No.1 raised by the appellant is allowed for statistical purposes.

Since in the Ground No.1, we have remitted the issues to the file of ld.CIT(E) dealing with remaining grounds would be merely academic in nature.

In the result, the appeal filed by the appellant is allowed for statistical purposes as per terms indicated hereinabove.

अपीलाथ / The Appellant. 2. यथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “A” बच, पुणे / DR, ITAT, “A” Bench, Pune.

गाड फ़ाइल / Guard File. आदेशानुसार / BY ORDER,