BHAI VAIDYA FOUNDATION ,PUNE vs. CIT EXEMPTION , PUNE

Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 29.03.2024 for registration of the trust under section 12A(1)(ac)(vi)- ITEM(B). With a view to verify the genuineness of the 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, a notice was issued through ITBA portal on 24.05.2024 requesting the assessee to upload

The information / details were called for under the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961. These are the basic details required to ascertain the overall nature of the activities of the assessee and are directly relevant to the present proceedings. However, the assessee has failed to comply despite giving sufficient opportunities as discussed above including an opportunity of being heard.

Thus, the assessee has failed to furnish the details called for under the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961 to verify the genuineness of activities of the trust / institution and to verify the 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.

In absence of the compliance to the above requirement, it is not possible to arrive at any conclusion about the genuineness of activities of the assessee and the 3 compliance to the 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.

It is clear from the above that the assessee was given sufficient opportunity to comply, but it has not complied to the same. It seems that the assessee is not having any supporting documents / evidence to submit. The assessee has failed to comply with the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961. Hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and the compliance to the 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. Therefore, the undersigned has left no alternative but to reject the application.”

Aggrieved with such order of Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds: 1. On the basis of facts and in the circumstances of the case and as per law, the Commissioner of Income Tax, (Exemptions) Pune, is not justified in rejecting the regular registration even after the submission of information called from the assessee-trust. The rejection is only on the hyper-technical ground of wrong section code inadvertently / mistakenly used by the assessee in Form 10AB.

The appellant craves leave to add, alter, omit or substitute any of the grounds at the time of hearing of the appeal.

The Ld. Counsel for the assessee at the outset submitted that the application filed for grant of registration u/s 12A of the Act was rejected by the Ld. CIT(E) on the ground that the assessee has used wrong section code in Form 10AB inadvertently / mistakenly. He submitted that in the interest of justice, the assessee should be given an opportunity to substantiate its case by filing all the relevant details for deciding the issue afresh. He accordingly submitted that the matter may be restored to the file of the Ld. CIT(E).

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

We have heard the heard the Ld. Representatives of the parties, perused the order of the Ld. CIT(E) and the paper book filed on behalf of the assessee and various judicial precedents relied upon by the Ld. AR as well. It is an admitted fact that due to non-compliance to the notice issued by the Ld. CIT(E) inter-alia asking for certain details such as bills/vouchers/invoices/photographs for claiming expenses in respect of charitable activities carried out by the trust etc., he rejected the application for grant of registration and also cancelled the provisional registration granted earlier u/s 12AB. The assessee trust was earlier registered u/s 12A w.e.f. 05.01.2017. The assessee sought re-registration under new scheme and was also granted provisional registration on 24.09.2021. Thereafter the assessee applied for regular registration by filing Form 10AB on 29.03.2024. A show cause notice was issued by the Ld. CIT(E) indicating wrong selection of code by the 5 assessee while e-filing Form 10AB, which is also the reason for which the Ld. CIT(E) rejected the registration application of the assessee. It is the submission of the Ld. Counsel for the assessee that given an opportunity the assessee is in a position to substantiate its case by filing all the relevant details before the Ld. CIT(E). Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(E) with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details to his satisfaction and decide the issue as per fact and law. The assessee is also hereby directed to submit the details as called for by the Ld. CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the Ld. CIT(E) is at liberty to pass appropriate order as per law.

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

अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent

4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. गार्ड फाईल / Guard file.