SACHIN MEMORIAL FOUNDATION,PUNE vs. CIT EXEMPTION, PUNE

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ITA 299/PUN/2025Status: DisposedITAT Pune01 April 2025AY 2025-26Bench: Dr. MANISH BORAD (Accountant Member), SHRI VINAY BHAMORE (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal and restored the issue to the file of the CIT(E) for fresh adjudication. The assessee was directed to provide full cooperation and granted a reasonable opportunity.

What were the facts?

The assessee, a charitable trust, filed an application for registration under Section 12A. The CIT(E) rejected the application after issuing a notice and observing discrepancies, stating the assessee failed to reply adequately. The appeal was filed late, but the delay was condoned.

What were the issues?

Whether the CIT(E) erred in rejecting the registration application without providing adequate opportunity and whether the assessee is carrying out genuine charitable activities.

Which sections of the Income-tax Act were involved?

Section 12A,Section 80G,Section 124

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, B

Before: Dr. MANISH BORAD & SHRI VINAY BHAMORE

For Appellant: Shri B.S. Rajpurohit
For Respondent: Shri Ajay Kumar
Hearing: 01.04.2025

Assessee by : Shri B.S. Rajpurohit Revenue by : Shri Ajay Kumar Keshari- CIT Date of hearing : 01.04.2025 Date of : 04.04.2025 pronouncement आदेश/ORDER

PER DR. MANISH BORAD, ACCOUNTANT MEMBER :

1.

The Present appeal at the instance of assessee is directed against the order of Ld. CIT(Exemption) dated 25.11.2024

2.

Registry has informed that the present appeal is barred by limitation by 4 days. Application for condonation of delay has been filed and after hearing both the sides we find that the delay in filing the appeal was due to reasonable cause and not intentional or delebrately. We therefore condone the delay of 4 days and admit the appeal for adjudication.

3.

The Assessee has raised following grounds of appeal:-

1. The CIT (Exemptions) erred in rejecting the application for registration under section 124/800 on the basis of non-submission of additional documents.

2. The appellant contends that the CIT (Exemptions) did not properly appreciate the objectives and activities of the appellant, which qualify for exemption under section 12A and 80G 3. The CIT (Exemptions) failed to consider that the appellant has been carrying out genuine charitable activities as defined under the Income Tax Act, 1961, and is entitled to registration under both sections.

4.

The CIT (Exemptions) failed to provide the appellant with an adequate and reasonable opportunity to respond to the additional issues raised in the proceedings. The appellant was not given sufficient time to address the additional points raised, thereby denying the right to a fair hearing.

5. The CIT (Exemptions) has failed to appreciate the submission and documentation provided by the appellant during the proceedings, and there has been a failure of natural justice in not considering the same adequately.

6. The appellant was provided with a very short time period to respond to the show-cause notice, and due to this insufficient time, could not present all the necessary additional documents and clarifications demanded in the notice.

4. At the outset Ld. counsel for the assessee submitted that adequate and reasonable opportunity to respond to the additional issues raised in the proceedings was not granted and therefore one more opportunity be given to plead the issue on merits before Ld. CIT(A). Ld. DR did not oppose to this request.

5.

We have heard rival contentions and perused the record placed before us. We observe that the assessee is a charitable trust established in 2003 and is recognized by College of Physicians and Surgeons of Mumbai since 24.09.2003 with the object of carrying out charitable activities. Application u/s 12A filed on Form 10AB on 26.06.2024. Various details were called for by Ld. CIT(E) and assessee was required to make compliance by 07.08.2024 and assessee duly submitted the details. Ld. CIT(E) after going through these details observed certain discrepancies and again issued a notice to be completed on 25.10.2024. The assessee failed to reply and as a result application filed under section 12A was rejected.

6.

We however considering the prayer of Ld. counsel of the assessee and also observing that sufficient opportunity was not granted, and also considering the principles of natural justice deem it proper to restore the issues raised on merits to the file of Ld. CIT(E) for afresh adjudication of the application filed on Form No. 10AB for registration u/s 12A of the Act after duly granting reasonable opportunity to the assessee. Assessee is also directed to remain vigilant and not to take unnecessary adjournment. Effective Grounds of appeal raised by the assessee are allowed for statistical purposes.

7.

In the result appeal of the assessee is allowed for statistical purposes.

Order pronounced on this 04th day of April, 2025.

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