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Facts
The assessee, a society registered under the Societies Registration Act and Maharashtra Public Trusts Act since 1971, applied for registration under Section 12AB of the IT Act. The CIT rejected the application because the assessee mentioned that activities had not commenced, while the application was filed under a clause applicable to entities that had commenced activities.
Held
The Tribunal held that the assessee had indeed commenced activities since 1971, as evidenced by its long-standing operation and registration under earlier Acts. The rejection by the CIT was based on a discrepancy arising from a change in PAN status, and thus, the matter was remanded.
Key Issues
Whether the CIT was justified in rejecting the registration application under Section 12AB based on the assessee stating activities had not commenced, despite evidence of prior commencement of activities.
Sections Cited
12A(1)(ac)(vi), 80G(5), 12AB, 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 19.06.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB u/s 12A(1)(ac)(vi)-ITEM(B) of the IT Act filed on 22.01.2025 and denying the application for approval in Form No.10AB under sub-clause (B) of (iv) of first proviso to sub-section (5) of section 80G of the IT Act filed on 22.01.2025.
: 2. Facts of the case, in brief, are, that the assessee is a society registered with Maharashtra Public Trust Act, 1950 and has filed application for registration in Form No.10AB under section 12(1)(ac)(vi)-ITEM(B) of the IT Act on 22.01.2025. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, notices were issued by Ld. CIT, Exemption, Pune through ITBA portal requesting the assessee to upload certain information/clarification. It was specifically asked by Ld. CIT, Exemption, Pune that the application for registration u/s 12AB of the IT Act was furnished u/s 12A(1)(ac)(vi)-ITEM(B) which is applicable for the assessee who have already commenced their activities, however, it is found that in your application you have mentioned that activities have not been commenced. In reply, the assessee submitted that earlier another PAN was used by the assessee which was allotted in the status of ‘Trust’ and now the assessee has obtained new PAN as a society under the status of ‘AOP’. It was also clarified that since 1971 the assessee society is engaged in the educational activity and therefore its activities have & 1886/PUN/2025 already commenced since 1971 and due to this fact the application for registration u/s 12AB of the IT Act was filed u/s 12A(1)(ac)(vi)- ITEM(B). However, Ld. CIT, Exemption, Pune was not satisfied with the above reply and rejected the application for registration u/s 12AB of the IT Act. It is this order against which the assessee is in appeal before this Tribunal.
Ld. AR appearing from side of the assessee submitted before us that order passed by Ld. CIT, Exemption, Pune is not justified. Ld. AR submitted that the assessee society was duly registered under Societies Registration Act, 1860 w.e.f. 22.07.1971 and was also registered under the Maharashtra Public Trusts Act, 1950 w.e.f. 28.06.1972 since dual registration was permitted. The assessee society came into existence on 22.07.1971. Accordingly, the date of commencement of activity of assessee society is 22.07.1971. However, the assessee society was allotted Permanent Account Number (PAN) i.e. AAATV1713H under the status of a ‘Trust’ which was used by the assessee upto 11.11.2024. Subsequently, the assessee society obtained new PAN – AAJAV1403E under the status of ‘AOP’ which was issued on 24.05.2024. It was also submitted that the name of assessee society remained same as ‘Vasantrao Naik Shikshan Prasarak Mandal’ and the objects and & 1886/PUN/2025 activity of the assessee society also remained same. Ld. AR also submitted that since 1971 the assessee is working in the field of education and the activities are continued since then. Ld. AR contended that the assessee society was already registered u/s 12A of the IT Act w.e.f. 24.09.2021 on the old PAN, the copy of registration is furnished in the paper book at page no.5 to 7. Since the assessee society surrendered the old PAN Number and obtained new PAN Number, fresh application for registration u/s 12AB of the IT was made under ITEM(B) of section 12A(1)(ac)(vi) of the IT Act which was wrongly rejected by Ld. CIT, Exemption, Pune. Accordingly, Ld. AR requested before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to grant registration u/s 12AB of the IT Act.
Ld. DR appearing from side of the Revenue placed heavy reliance on the order passed by Ld. CIT, Exemption, Pune and requested to confirm the same.
We have heard Ld. Counsels from both the sides and perused the material available on record including paper book furnished by the assessee. In this regard, we find that admittedly the assessee society himself mentioned in the application for registration that the activities have not been commenced, however, the application was & 1886/PUN/2025 filed under ITEM-B of section 12A(1)(ac)(vi) of the IT Act which is for an assessee who has already commenced the activities and for this discrepancy alone Ld. CIT, Exemption, Pune rejected the application for registration u/s 12AB of the IT Act. We further find that the assessee is registered under Societies Act, 1860 and also registered under Maharashtra Public Trusts Act, 1950 since 1971 and also engaged in providing educational facilities on the old PAN which was allotted under the status of ‘Trust’. Subsequently, the assessee society obtained new PAN- AAJAV1403E under the status of ‘AOP’ under the same name, style & objects and surrendered the old PAN- AAATV1713H. With the new PAN, the assessee society made application for registration u/s 12AB of the IT Act and since according to the assessee on this new PAN no activity was commenced, in the application for registration, it was mentioned that activities have not been commenced, however, we find that the assessee society was already in existence since 1971 and was also providing educational facilities since then and therefore it can be said that its activities have already been commenced prior to filing of fresh impugned application for registration u/s 12AB of the IT Act and therefore the application was rightly filed under ITEM-B of section 12A(1)(ac)(vi) of the IT Act. Considering the totality of the & 1886/PUN/2025 facts of the case & in the interest of justice and without going into the merits of the case, we set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to treat the application as correct and decide the application for registration afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and produce requisite documents/information in support of the application for registration, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal
raised by the assessee are partly allowed.
6. In the result, the appeal filed by the assessee in is partly allowed for statistical purposes. :
7. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(iii) to the file of Ld. CIT, Exemption, Pune for de novo adjudication, therefore, in the interest of justice, it would be