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Facts
The assessee, Pushpaswarup Charitable Trust, applied for registration under Section 12AB(1)(a)(vi)-ITEM(B) and approval under Section 80G(5) of the Income Tax Act. The ld.CIT(E) rejected these applications, citing non-furnishing of details regarding experts, government permissions for camps, and justification for doctors' salaries. The appellant argued that it had partly complied and requested the matter to be restored to the file of ld.CIT(E) for further submission of details.
Held
The Tribunal observed that the appellant had partly complied and that the ld.CIT(E) sought additional information. In the interest of justice and fairness, the Tribunal remitted the issue of regular registration under Section 12AB and approval under Section 80G(5) back to the ld.CIT(E). The ld.CIT(E) is directed to provide a reasonable opportunity to the appellant to adduce necessary evidence, and the appeals are allowed for statistical purposes.
Key Issues
Whether the ld.CIT(E) was justified in rejecting the applications for regular registration under Section 12AB and approval under Section 80G(5) due to non-furnishing of complete details by the charitable trust.
Sections Cited
12A, 12AB(1)(a)(vi), 80G(5)
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Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeals at the instance of assessee are against the rejection of applications for regular registration u/s.12AB(1)(a)(vi)-ITEM(B) and approval u/s.80G(5) of the Act respectively framed by ld.CIT(E) evenly dated 30.09.2024.
At the outset, Ld. Counsel for the appellant submitted that the appellant is carrying out the charitable activities by providing medical relief to underserved and impoverished communities at free of cost/concessional rate and has proved the charitable nature by providing the requisite details. However, ld.CIT(E) rejected the applications asking some more details which could not be furnished and therefore a prayer is made to restore the issue to the file of ld.CIT(E) for submitting the requisite details as called for by ld.CIT(E).
On the other hand, ld. Departmental Representative supported the impugned orders passed by the authorities.
We have heard the rival contentions and perused the record placed before us. We notice that the appellant is a Charitable Trust registered under the Mumbai Public Trust Act, 1950. The object of the Trust is to provide medical relief by way of conducting health check-up camps at regular intervals to the underserved and impoverished communities free of cost as well as concessional rate. Appellant trust applied for regular registration u/s.12A r.w.s.12AB(a)(ac)(vi-ITEM(B) of the Act on Form No.10AB on 09.03.2024 and also applied for approval u/s.80G(5) of the Act on the same date. In order to verify the genuineness of the activities of the assessee and compliance to requirement of any other law, ld.CIT(E) issued notice through ITBA portal on 10.05.2024 calling upon the appellant to upload certain information/clarification. The appellant trust furnished certain details. However, ld.CIT(E) issued another notice dated 06.08.2024 notifying the discrepancies in the information so furnished and the appellant submitted the requisite information. However, ld.CIT(E) rejected both the applications on the ground that it has not provided the details of experts who rendered services at various camps, permission from Govt. authorities for conducting of camps etc. It was also observed by ld.CIT(E) that the appellant trust was also required to justify the payment of ‘salary to doctors’ with supporting evidences as shown in the financial statements for F.Y. 2021-22 and 2022-23.
Keeping in view that the appellant trust has partly complied with the notices issued by ld.CIT(E) by furnishing the requisite details and the ld.CIT(E) sought some more information, in the larger interest of justice and fair to both the parties, we deem it proper to remit the issue of regular registration u/s.12AB as well as approval u/s.80G(5) of the Act to ld.CIT(E) for necessary adjudication who shall afford reasonable opportunity to the appellant trust and decide in accordance with law. Appellant trust is directed to adduce necessary evidences to the satisfaction of ld.CIT(E). Effective grounds raised by the appellant in both the appeals are allowed for statistical purposes.
In the result, both the appeals of the appellant are allowed for statistical purposes.
Order pronounced on this 06th day of May, 2025.