DNYANAGAN EDUCATION SOCIETY,SATARA vs. CIT EXEMPTION, PUNE

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ITA 2864/PUN/2024Status: DisposedITAT Pune25 August 2025Bench: SHRI R. K. PANDA (Vice President), MS. ASTHA CHANDRA (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that the primary reason for rejection by the CIT(E) was the non-availability of 12AB registration, which was itself a subject of a restored appeal before the CIT(E). Therefore, the Tribunal restored the issue of 80G approval back to the CIT(E) for fresh adjudication after giving the assessee an opportunity of being heard.

What were the facts?

The assessee filed an application for approval under section 80G. The CIT(E) rejected the application because the assessee's previous application for registration under section 12A(1)(ac)(iii) was rejected and its provisional registration was cancelled. However, an appeal order by the ITAT had set aside the rejection of the 12A order and restored it for fresh adjudication.

What were the issues?

Whether the CIT(E) erred in rejecting the 80G approval application due to a pending issue with 12A/12AB registration, which itself was restored for fresh adjudication?

Which sections of the Income-tax Act were involved?

Section 80G,Section 12A,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE

Before: SHRI R. K. PANDA & MS. ASTHA CHANDRA

For Appellant: Shri Kishor Phadke
For Respondent: Shri Amol Khairnar, CIT-DR

This appeal filed by the assessee is directed against the order dated 12.12.2024 of the Ld. CIT(Exemption), Pune rejecting the application for grant of approval u/s 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 27.06.2024 for approval of the trust under clause (iii) of first proviso to sub section (5) of section 80G of the Act. With a view to verify the genuineness of the activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G of the Act, a notice was issued through ITBA portal on 26.07.2024 requesting the assessee to upload certain information / clarification. In response to the same the assessee filed the various details. However, the Ld. CIT(E) rejected the application for grant of exemption u/s 80G on the ground that the assessee’s previous application u/s 12A(1)(ac)(iii) had been rejected and its provisional registration dated 07.04.2022 has already been cancelled vide order dated 11.03.2024. In absence of any valid previous registration u/s 12A(1)(ac)(iii) as on the date of filing the present application, the Ld. CIT(E) rejected the application filed for grant of approval u/s 80G of the Act.

3.

Aggrieved with such rejection of application for grant of approval u/s 80G by Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds:

1. The learned CIT (Exemption), Pune; erred in law and on facts in rejecting the appellant's application for registration u/s 80G of ITA, 1961 on the ground that the appellant trust does not have a valid provisional registration u/s 12A/12AB. The learned CIT(Exemption), Pune ought to have appreciated that the 12A rejection order dated 11/03/2024 has been set aside by the Hon'ble ITAT, Pune Bench vide order dated 01/08/2024.

2. 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.

3. 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.

4.

The Ld. Counsel for the assessee filed a copy of the order of the Tribunal in assessee’s own case vide order dated 01.08.2024 and submitted that the issue of registration u/s 12A has been restored to the file of the Ld. CIT(E) for fresh adjudication. He accordingly submitted that he has no objection if the matter is restored to the file of the Ld. CIT(E) for adjudication of the issue afresh.

5.

The Ld. DR on the other hand supported the order of Ld. CIT(E).

6.

We have heard the rival arguments made by both the sides, perused the order of the Ld. CIT(E) and the paper book filed on behalf of the assessee. Since one of the reasons given by the Ld. CIT(E) for grant of approval u/s 80G is non- availability of registration u/s 12AB and since the issue relating to registration u/s 12A/12AB has already been restored to the file of the Ld. CIT(E) by the Tribunal for fresh adjudication, therefore, we deem it proper to restore the issue to the file of the Ld. CIT(E) with a direction to decide the issue afresh and in accordance with law after providing due opportunity of being heard to the assessee. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open Court on 25th August, 2025.

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