Loading judgment…
Facts
The assessee filed an application for registration under sections 12A and 12AB of the Income Tax Act. The CIT(Exemptions) rejected the application citing that the genuineness of activities could not be verified. The assessee contended that they organized food distribution activities and provided supporting documents.
Held
The Tribunal noted that the assessee was prevented by sufficient cause from effectively prosecuting the appeal. Therefore, the impugned order was set aside, and the case was remanded to the CIT(E) for denovo adjudication, providing the assessee an opportunity to present necessary documents.
Key Issues
Whether the rejection of the registration application by the CIT(E) was justified, and if the assessee should be given another opportunity to prove the genuineness of its activities.
Sections Cited
12A, 12AB, 80G(5), 12(A)(1)(ac)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
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‟) both dated 18.12.2024 respectively. For the sake of convenience, these two appeals were heard together and are being & 566/PUN/2025 [A] disposed of by this common order. We treat the appeal in ITA No.567/PUN/2025 as lead case. “1. The learned CIT(Exemption) erred on facts and in law in rejecting approval/s.12AB of the Act without appreciating the facts, the detailed submissions and the explanations provided by the assessee in its proper perspective.
The appellant craves leave to add, alter, delete or substitute all or any of the above grounds of appeal
.”
2. At the outset of hearing, no one appeared on behalf of the assessee. Findings & Analysis :
3. We have ld.DR for the Revenue and perused the records.
3.1 Brief facts of the case are that the assessee filed an application in Form No.10AB under clause (iii) of section 12(A)(1)(ac) of the Act, dated 29.06.2024. In order to verify the genuineness of the activities of the assessee and in 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, a notice dated 07.08.2024 was issued through ITBA Portal requesting the assessee to upload certain information / clarification. The assessee in response to the same filed certain details. On perusal of the those details, the ld.CIT(E) found certain discrepancies for which he issued another notice dated 27.11.2024 issued asking the assessee to explain by calling for certain other details. And also the assessee 2 & 566/PUN/2025 [A] was requested to show cause as to why the application should not be rejected and why the registration granted under section 12AB of the I.T.Act should not be cancelled. The ld.CIT(E) also gave an opportunity of being heard to this impugned notice. The notice was duly served on the assessee through e-portal and email.
In response to the show cause notice, Assessee furnished reply vide dated 04.12.2024 claiming that Assessee Society organized food distribution activity for which supporting photographs and bills have been furnished.
4.1 However, ld.CIT(E) rejected assessee‟s application stating that genuineness of Activities cannot be verified. Ld.CIT(E) has not commented on objects of the Trust/Society.
We have given our thoughtful consideration to the facts and circumstances of the case. We are of the view that the appellant was for sufficient cause prevented from prosecuting the appeal effectively, therefore deserves to be given one more opportunity to prove its case on merits. In view thereof, without dwelling into merits of the issue, we set-aside the impugned order to the file of Ld.CIT(E) for denovo adjudication. The ld.CIT(E) shall provide opportunity to the Assessee. The Assessee shall file necessary 3 & 566/PUN/2025 [A] documents before the ld.CIT(E). 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.
Since we have already set-aside the order of ld.CIT(E) to ld.CIT(E) for denovo adjudication in above, therefore, our order therein passed shall apply mutatis mutandis for the present appeal too. Accordingly, the order passed under section 80G(5) of the Act is also set-aside to the file of 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.