MAHESHWARI PRAGATI MANDAL,NANDED vs. C.I.T, 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.2514/PUN/2024
िनधाᭅरण वषᭅ / Assessment Year: -
Maheshwari Pragarti Mandal,
Maheshwari Bhavan, H.No.10-
2-1091, New Koutha, Latur
Road, Nanded – 431603. Maharashtra.
V s
The Commissioner of Income Tax(Exemption),
Pune.
PAN: AABTM9529M
Appellant/ Assessee
Respondent / Revenue
Assessee by Shri Sarvesh Vinod – AR
Revenue by Shri P R Mane – DR
Date of hearing
23/04/2025
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 27.09.2024. The assessee has raised the following ground of appeal :
“1) Deeming Rental income be of Commercial Nature
The Ld CIT has erred in assuming that income reported by the Appellant
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under the head RENT & OTHER SOURCES are commercial in nature.
The Appellants collects a nominal charges for the utilization of halls, and the proceeds are utilized for maintenance of the Hall and administrative activities.
The Trust Deed has a clear mention of this activity for "Welfare And Other Services To The Public
2) Expenses on Object of Trust not considered
The Ld. CIT has erred in considering that, out of the total receipts of 96,36,094, only 25,000 has been expensed towards the object of the Trust. The Ld. CIT has entirely disregarded the substantial expenses.
incurred for the repair and maintenance of the hall. Furthermore, the argument that a balance of ₹ 1,06,105 in the bank account at the end of financial year, indicates insufficient expenditure towards charitable purposes is incorrectly appraised by the ld. CIT.
3) Appointment of Vendor deemed to be a Commercial Activity The Appellant has not engaged any vendors, as alleged in the order of rejection of application U/s 12A of IT Act. Merely collection of security deposit from the service provider does not implies that the appellant has appointed services provider, the users of the hall are free to select any service provider at their choice. The Ld. CIT has erred in interpreting this as a business arrangement and consequently deeming the Appellant's activities as commercial in nature.
4) Non registration u/s 12A in the Past
The Ld. CIT has erred in arguing that the Appellant did not previously filed application for registration under Section 12A due to the absence of charitable activities and that the Appellant admitted to this claim.
The Appellant has made no such submission, and this statement by the Ld. CIT is purely based on assumptions and presumptions. Failure to apply for registration under Section 12A does not negate the charitable nature of the activities carried out by the Appellant. The Ld. CIT's conclusions in this regard are grossly erroneous.
The Appellant craves leave to add, amend, delete, rectify, substitute, and modify the aforesaid ground of appeal or add new grounds of appeal at any time before or at the time of hearing of appeal.”
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Submission of ld.AR :
Ld.AR submitted that though assessee had filed elaborate submission before ld.CIT(E), ld.CIT(E) erred in stating that no details were filed. Ld.AR filed paper book containing 213 pages. Ld.AR submitted that all these details were filed before ld.CIT(E). ld..AR submitted that ld.CIT(E) has erred in rejecting assessee’s application.
1 Ld.AR submitted that there was a delay of four days in filing appeal before this Tribunal. Ld.AR filed an Affidavit and condonation petition. Ld.AR requested that delay may kindly be condoned.
Ld.DR for the Revenue relied on the order of the CIT(E).
Findings & Analysis :
We have heard both the parties and perused the records. The ld.CIT(E) has rejected assessee’s application for registration u/s.12A vide order dated 27.09.2024. The relevant paragraph 7, 8 and 9 of the ld.CIT(E)’s order are reproduced here under : “7. 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 ITA No.2514/PUN/2024 [A]
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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.
In view of the above, the undersigned is not satisfied about the charitable nature and the 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.
In view of the above, the application filed by the assessee under section 12A(1)(ac) (vi)-ITEM(B) of the Income Tax Act, 1961 is hereby rejected.
1 Thus, ld.CIT(E) has rejected assessee’s application only on the one ground that no details were filed. However, on perusal of the paper book filed by the assessee, it is observed that assessee had made an elaborate submission before the ld.CIT(E). This fact has not been rebutted by ld.DR for the Revenue.
2 In these facts and circumstances of the case, we set-aside the order of the ld.CIT(E) to ld.CIT(E) for denovo adjudication. The ld.CIT(E) shall provide opportunity to the assessee. Assessee shall file all the necessary details. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.
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5. In the result, appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open Court on 29th April, 2025. (VINAY BHAMORE)
ACCOUNTANT MEMBER
पुणे / Pune; ᳰदनांक / Dated : 29th April, 2025/ SGR
आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to :
1. अपीलाथᱮ / The Appellant.
2. ᮧ᭜यथᱮ / The Respondent.
3. The CIT(A), concerned.
4. The Pr. CIT, concerned.
5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “ए” बᱶच, पुणे / DR,
ITAT, “A” Bench, Pune.
गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER,
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Senior Private Secretary
आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.