JAGDISH KRISHNA EDUCATIONAL SOCIETY BHIWANDI,BHIWANDI vs. CIT EXEMPTION PUNE, PUNE

आयकर अपीलीय अिधकरण ”ए” Ɋायपीठ पुणेमŐ।
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCHES “A” :: PUNE

BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER
AND SHRI VINAY BHAMORE, JUDICIAL MEMBER

आयकर अपील सं. / ITA No.1080/PUN/2024
िनधाᭅरण वषᭅ / Assessment Year: 2022-23
Jagdish Krishna Educational
Society,
H.No.103, building No.2,
Omkar, Rahnal – 421302. Maharashtra.
V s
The CIT Exemption,
Pune.
PAN: AABAJ8221E

Appellant/ Assessee

Respondent / Revenue

Assessee by Smt.Deepa Khare – AR
Revenue by Shri P R Mane - DR
Date of hearing
24/04/2025
Date of pronouncement 29/04/2025

आदेश/ ORDER

PER DR. DIPAK P. RIPOTE, AM:

This appeal filed by the assessee is against the order of ld.Commissioner of Income Tax-Exemption, Pune passed under section 12A(1)(ac) of the Income Tax Act, 1961; dated 28.03.2024. The assessee has raised the following ground of appeal :
“The Appellant above named most respectfully begs to submit grounds of Appeal against the rejection order dated 28-03-2024 vide Application No.
CIT EXEMPTION,

ITA No.1080/PUN/2024 [A]

PUNE/2023-24/12AA/12608 dated 23/09/2023 as under:- 1) The learned CIT (Exemption) Pune erred in law and on facts in not granting registration u/s 12A of ITA, 1961, and rejecting the Application for the same. 2) The Ld. CIT Exemption Pune is not considering the submission made on 23/09/2023 and further submission on 05/03/2024 reply given to notice dated 27/02/2024 which has been explained about the loan permission of section 36A, The trust takes the nominal amount from the trustee (Anamat) for giving salaries to teachers and other nominal expenses small amount from some years, RTE from financially weaker sections students not considered and the Building is Purchase in F. Y.
2022-23 and submission was made upto F.Y.2021-22. Hence we have not explained this in the final submission.

Submission of ld.AR :

Submission of ld.DR :

ITA No.1080/PUN/2024 [A]

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Findings & Analysis :

ITA No.1080/PUN/2024 [A]

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4.1 The case was adjourned to 22.04.2025. On 22.04.2025, ld.AR appeared and requested for adjournment. Accordingly, case was adjourned to 24.04.2025. 4.2 On 24.04.2025, we heard ld.AR and ld.DR. Ld.AR only pleaded that case may set-aside to ld.CIT(E), so that assessee files all relevant details. We specifically asks ld.AR, why the details have not been filed before ld.CIT(E), the ld.AR could not give any reason. We specifically asked ld.AR why not a single document has been filed before us, to demonstrate the object of the Trust, genuineness of the activities. Ld.CIT(E) has mentioned in the order that assessee has violated provisions of section 36A of Maharashtra
Public Trust Act, by not obtaining prior permission of Charity
Commissioner for the Loan. It is also noted that not a single document has been filed before us to explain the identity of the Lender, the reason for impugned loan, the reason for not obtaining prior permission of Charity Commissioner.

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noted that it is mandatory to admit students of weaker sections as per
Right to Education Act. Even before us, ld.AR could not explain the reasons for violation of Right to Education Act.

(a) where the application is made under sub-clause (i) of the said clause, pass an order in writing registering the trust or institution for a period of five years;

(b) where the application is made under sub-clause (ii) or sub-clause
(iii) or sub-clause (iv) or sub-clause (v) 2[or item (B) of sub-clause (vi)]
of the said clause,—

(i) call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about—

(A) the genuineness of activities of the trust or institution; and (B) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects;

(ii) after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub-clause (i),—

(A) pass an order in writing registering the trust or institution for a period of five years; or ITA No.1080/PUN/2024 [A]

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The Section 36A(3) of the Maharashtra Public Trusts Act is reproduced here as under :
“(3) No trustee shall borrow moneys (whether by way of mortgage or otherwise) for the purpose of or on behalf of the trust of which he is a trustee, except with the previous sanction of the Charity Commissioner, and subject to such conditions and limitations as may be imposed by him in the interest or protection of the trust.”

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Act. To protect the Trust Properties, Section 36A(3) has made it mandatory to obtain prior permission before availing loan. The prior permission also gives an opportunity to the Charity
Commissioner to verify that the money taken on loan has been properly utilized for the objects of the Trust. In this case, since no details have been filed by the assessee, it is impossible to verify whether the loan was utilized for the objects of the trust or not!
Also, assessee has not proved that the loan was utilized for the objects of the trust, therefore, the genuineness of the activities is in doubt.

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the Act. In these facts and circumstances of the case, grounds of appeal raised by the assessee are dismissed.

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Senior Private Secretary

आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.