FRIENDS EDUCATION SOCIETY KAIJ,BEED vs. CIT (EXEMPTIONS), PUNE

This appeal filed by the assessee is directed against the order dated 08.04.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 80G of the IT Act.

Facts of the case, in brief, are, that the assessee filed its application for registration in Form No.10AB under sub-clause (B) of (iv) of first proviso to sub-section (5) of section 80G of the IT Act on 30.10.2024. With a view to verify the genuineness of activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G(5) of the IT Act, a notice was issued ITBA portal on 23.11.2024. Since the assessee did not respond to the said notice another notice was issued on 23.12.2024 requesting the assessee to upload certain information/clarification on or before 31.12.2024. In compliance to the above notice, desired information was furnished by the assessee. After verifying these details, Ld. CIT, Exemption, Pune found that the assessee is neither registered u/s 12AB of the IT Act nor registered u/s 10(23C) of the IT Act. Ld. CIT, Exemption, Pune also found that the assessee has not furnished year-wise details of addition to building fund and other funds with evidence of its source and complete details of the persons like address, PAN, mode of payment, receipt no. issued and copy of direction from the persons are not furnished, accordingly Ld. CIT, Exemption, Pune was of the view that the genuineness of these receipts remain doubtful. It was also observed that the receipts in building fund account have not been routed through income and expenditure account. Consequently, Ld. CIT, Exemption, Pune was of the view that the assessee failed to prove the genuineness of the above donations which remained doubtful and accordingly the application for approval u/s 80G(5) of the IT Act was rejected. It is the above order against which the assessee is in appeal before this Tribunal.

With regard to above reason no.1, the counsel of the assessee submitted before the Bench that the assessee is engaged in providing education and does not exist for earning profit and its receipts are less than Rs.5 crores, therefore in the light of section 10(23C) sub-section (iiiad) of the IT Act the income of the assessee is exempted & assessee is not required to get any registration under section 10(23C) of the IT Act. Apart from this, the assessee has not claimed any exemption u/s 11 & therefore he is also not required to get registered u/s 12AB of the IT Act.

Regarding above reason no.2, the counsel of the assessee submitted before us that most of the information was provided before Ld. CIT, Exemption, Pune, however, if some information still remains to be produced the same shall be produced before Ld. CIT, Exemption, Pune if one more opportunity of hearing is provided to the assessee. Accordingly Ld. AR requested to set-aside the order passed by Ld. CIT, Exemption, Pune.

Ld. DR appearing from the side of the Revenue supported 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. In this regard, we find that the assessee is engaged in providing education and does not exist for earning profits. We also find that its gross receipts are less than Rs.5,00,00,000/- therefore its income is exempted u/s 10(23C)(iiiad) of the IT Act & therefore section 11 or section 12 has no application in its case & accordingly there is no requirement to get any kind of registration either u/s 12AB or u/s 10(23C)(iiiad) of the IT Act. Secondly, it was the contention of Ld. Counsel of the assessee that complete details of persons who donated the funds for building funds and the details of direction given by them are available on record and if one opportunity of hearing is provided to them the desired information shall be furnished before Ld. CIT, Exemption, Pune.

Considering the totality of the facts of the case and also in the interest of justice, without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption,