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Facts
The assessee, Vaghmi Foundation, applied for registration under sections 12A and 80G of the Income Tax Act. The CIT(Exemption) rejected the application citing non-compliance and lack of proper opportunity to be heard. The assessee had previously received provisional registration.
Held
The Tribunal set aside the orders of the CIT(Exemption) for denovo adjudication. The CIT(Exemption) was directed to provide an opportunity of hearing to the assessee, who was also directed to file necessary documents.
Key Issues
Whether the CIT(Exemption) erred in rejecting the application for registration without providing a reasonable opportunity of being heard and whether the grounds for rejection were justified.
Sections Cited
12A, 12AB, 80G, 12A(1)(ac)(i), 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B” :: PUNE
Before: MS.ASTHA CHANDRA & DR.DIPAK P. RIPOTE
ORDER PER DR. DIPAK P. RIPOTE, AM: These two appeals filed by the assessee are directed against the separate orders of ld.Commissioner of Income Tax(Exemption), Pune rejecting the application for grant of registration u/s.12A r.w.s 12AB and 80G(5) of the Income Tax Act, 1961(hereinafter referred to as „the Act‟) dated 30.09.2022 and 22.11.2024 respectively. For the sake of convenience, these two appeals were heard together and are being disposed of by this common order. We treat the appeal in
1. The learned CIT Exemption, Pune erred in law and on facts in rejecting appellant's application for registration u/s 12A of ITA, 1961 vide order dated 30/09/2022
The learned CIT Exemption, Pune erred in law and on facts in not providing reasonable opportunity of being heard to the appellant, as provided u/s 12AB of the ITA, 1961, to submit the details / information. Appellant undertakes to submit all the details/information required by the learned CIT Exemption, Pune if granted another opportunity of being heard.
The learned CIT Exemption, Pune; ought to have appreciated that appellant's activities are genuine and bonafide, and as such, eligible for registration u/s 12A of ITA, 1961.
4. Appellant craves leave to add, alter, clarify, explain, modify, delete any or all of the grounds of appeal
, and to seek any just and fair relief.” Submission of ld.AR :
2. Ld.AR filed a paper book. Ld.AR submitted that in this case, ld.CIT(Exemption) granted registration u/s.12A(1)(ac)(i) of the Act, vide order dated 01.12.2022. The copy of the order is at page no.51 to 52 of the paper book. Ld.AR submitted that however, Assessee should have applied u/s.12A(1)(ac)(iii) of the Act. Ld.CIT(Exemption) noticed this fact while rejecting the application of the Assessee filed for 80G approval. Present appeal is against 12A rejected vide order dated 30.09.2022, with reference to 2 & 1978/PUN/2025 [A] Application in Form No.10AB dated 30.03.2022 applied under section 12A(1)(ac)(iii) of the Act. Ld.AR submitted that the said application has been rejected only for non-compliance. Ld.AR submitted that once ld.CIT(Exemption) noted that Assessee is eligible for registration u/s.12A, then there is no reason for rejecting assessee‟s application dated 30.03.2022.
Findings & Analysis : 3. We have heard both the parties and perused the records.
Assessee is a company incorporated on 02.01.2019. Copy of the Incorporation Certificate is the page no.23 of the paper book. It is observed that Assessee received Provisional Registration on 28/05/2021 which was valid from A.Y. 2022-23 to A.Y.2024-25. Copy of the same is at page 29-30 of the Paper book.
4.1 Then, assessee applied for Regular Registration in Form 10AB on 30/03/2022 under section 12A(1)(ac)(iii) of the Act. Ld.CIT(E) issued notice dated 26.08.2022 then, notice dated 16.09.2022. Since assessee failed to file the details, ld.CIT(Exemption) rejected assessee‟s application. We have perused Affidavit filed by Mr.Iqbal Abdulgani Shaikh-Director of the Assessee Company. On perusal 3 & 1978/PUN/2025 [A] of the Affidavit, it is observed that there was sufficient reason for non-compliance.
In these facts and circumstances of the case, we set-aside the order dated 30.09.2022 to ld.CIT(Exemption) for denovo adjudication. Ld.CIT(Exemption) shall provide opportunity of hearing. Assessee shall file necessary documents before the ld.CIT(Exemption). Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose.
– 80G : 7. Ld.CIT(E) rejected Assessee‟s application for registration u/s.80G on account of non-availability of registration u/s.12A of the Act. Since we have set-aside the order u/s.12A for denovo adjudication, accordingly, we set-aside the order u/s.80G to ld.CIT(Exemption) for denovo adjudication. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. 4
ITA Nos.1977 & 1978/PUN/2025 [A]
To sum up, both appeals of the assessee are allowed for statistical purpose. Order pronounced in the open Court on 24 November, 2025.