VRINDAVAN GOUSHALA CHARITABLE TRUST,SATARA vs. ITO EXEMPTION WARD 1(1), PUNE

Considering the above facts discussed in the show notice and discrepancies noticed and also that the assessee has not complied with the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961 as well as the provisions of Rule 17A(2) of Income Tax Rules, 1962 in spite giving sufficient opportunities, the undersigned is unable to draw any satisfactory conclusion about the genuineness of activities of the assessee and compliance of requirements of any other law for the time being in force by the assessee as are material for the purpose of achieving its objects.

In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 04/10/2023 under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961 is hereby cancelled.”

Similarly, in absence of any registration u/s 12A or 12AB or approval u/s 10(23C) of the Act and in absence of any submission filed by the assessee in the Act.

Aggrieved with such order of Ld. CIT(Exemption), the assessee is in appeal before the Tribunal.

The Ld. Counsel for the assessee submitted that the assessee has filed all the relevant details in response to the first notice issued by the Ld. CIT(Exemption). He submitted that inadvertently the second notice could not be complied with due to the mistake on the part of the employee of the assessee trust. He submitted that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. CIT(E). He accordingly submitted that in the interest of justice, the assessee should be given an opportunity to substantiate its case by filing the requisite details before the Ld. CIT(E).

The Ld. DR on the other hand heavily relied on the order of Ld. CIT(E).

We have heard the rival arguments made by both the sides, perused the order of the CIT(E) and the paper book filed on behalf of the assessee. It is an admitted fact that after assessee filed certain details in response to the notice issued by the Ld. CIT(E) for grant of registration u/s 12A, the Ld. CIT(E) noticed certain discrepancies for which he issued another notice to the assessee asking it to explain those discrepancies. However, the assessee failed to submit any details for which the Ld. CIT(E) rejected the application for grant of registration u/s 12A and also cancelled the provisional registration granted earlier. It is the submission of the Ld. Counsel for the assessee that due to the mistake of the employee of the trust, those details could not be filed. It is also his submission that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the CIT(E) to his satisfaction. 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 CIT(Exemption) 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 CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the CIT(Exemption) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 8. Although a number of grounds have been raised by the assessee, however, these all relate to the order of the Ld. CIT(E) in rejecting the application for grant of approval u/s 80G of the Act.

After hearing both sides, we find the Ld. CIT(E) rejected the application for grant of approval u/s 80G of the Act on the ground that the assessee did not respond to the show cause notice issued by him pointing out the discrepancies noticed. Further, the assessee is neither registered u/s 12AB r.w.s. 12A(1)(ac)(i) / 12A(1)(ac)(iii) nor approved u/s 10(23C) read with clause (i) / (iii) of first proviso to the said section and the case is not covered under the exclusions provided vide proviso to clause (i) of section 80G(5) of the Act. Since 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 the relevant details and since we have restored the issue of grant of registration u/s 12A to the file of the Ld. CIT(E) for fresh adjudication, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue of grant of approval u/s 80G also to his file for fresh adjudication. Needless to say, the CIT(Exemption) shall grant an opportunity of being heard to the assessee and decide the issue as per fact and law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

In the result, both the appeals filed by the assessee are allowed for statistical purposes.

अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent

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