CREATIVE FOUNDATION,NANDURBAR vs. COMMISSIONER OF INCOME TAX CIT EXEMPTION, PUNE

IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH “A”, PUNE

BEFORE SHRI R. K. PANDA, VICE PRESIDENT
AND SHRI VINAY BHAMORE, JUDICIAL MEMBER

आयकर अपील सं. / ITA No.901/PUN/2024

Creative Foundation,
C/o
Krishna
Hospital,
Krushnakunj
Colony,
Dongargaon Road,
Shahada- 424409
PAN : AABTC9231C
Vs.
CIT, Exemption, Pune.
Appellant

Respondent

आदेश / ORDER

PER VINAY BHAMORE, JM:

This appeal filed by the assessee is directed against the order dated 18.03.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AA of the IT Act.
2. Facts of the case, in brief, are that the assessee filed application for registration in Form No.10AB under clause (iii) of section 12(1)(ac) of the IT Act on 05.09.2023. With a view to verify the genuineness of activities of the assessee and compliance
Assessee by :
Shri Sharad A. Shah
Revenue by :
Shri Amol Khairnar

Date of hearing
:
12.02.2025
Date of pronouncement
:
18.02.2025
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to 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, a notice was issued by Ld. CIT, Exemption, Pune through
ITBA portal on 06.11.2023 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. On verification of said information, Ld.
CIT, Exemption, Pune found certain discrepancies and issued another notice on 08.03.2024 requesting the assessee to furnish further details/information in this regard on or before 15-03-2024. Since the assessee has not complied with the notice dated
08.03.2024, Ld. CIT, Exemption, Pune rejected the application for registration by observing as under :-
“3. Since, the assessee has not furnished any explanation to the discrepancies communicated to it, it is presumed that the assessee has nothing to say in the matter.
4. 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.
5. In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 24/09/2021 under section 12AB read with section 12A(1)(ac)(vi) of the Income Tax Act, 1961 is hereby cancelled.”
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3. It is the above order against which the assessee is in appeal before this Tribunal.
4. Ld. AR appearing from the side of the assessee submitted before us that Ld. CIT, Exemption, Pune has not provided proper opportunity to the assessee and, therefore, the impugned order of Ld. CIT, Exemption, Pune is not justified. It was submitted that the last notice was issued on 08.03.2024 asking for various information and other details and the compliance was required to be made on or before 15.03.2024. It was submitted that lots of information was already furnished by the assessee and again various information was required through the above notice dated
08.03.2024 and only seven days were provided to the assessee to furnish the desired information. Accordingly, it was requested before the Bench to set-aside the impugned order passed by Ld.
CIT, Exemption, Pune with a direction to provide at least one more opportunity to furnish the requisite documents/information as desired by Ld. CIT, Exemption, Pune.
5. Ld. DR appearing from the side of the assessee relied on the order of Ld. CIT, Exemption, Pune and requested to confirm the same.
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6. We have heard Ld. Counsels from both the sides and perused the material available on record. We find that admittedly the assessee made compliance to the initial notices issued by the Ld.
CIT, Exemption, Pune. It is the sole contention of the assessee trust that one more opportunity may kindly be provided to furnish reply before Ld. CIT, Exemption, Pune. In this regard, it was contended before the Bench that somehow the notice was missed
& the reply could not be filed by the assessee trust & in such kind of situation, Ld. CIT, Exemption, Pune ought to have provided at-least one more opportunity to the assessee to substantiate his case. Considering the totality of the facts of the case, & also in the interest of justice and without going into merits of the case, we set- aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the application for registration afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption,
Pune and produce requisite documents/information/ submissions in support of the application for registration without taking any adjournment under any pretext, otherwise, Ld. CIT, Exemption,
Pune shall be at liberty to pass appropriate order as per law. Thus,
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the grounds of appeal raised by the assessee are allowed for statistical purposes.
7. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 18th day of February, 2025. (R. K. PANDA)
JUDICIAL MEMBER

पुणे / Pune; ᳰदनांक / Dated : 18th February, 2025. Sujeet
आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to :
1. अपीलाथᱮ / The Appellant.
2. ᮧ᭜यथᱮ / The Respondent.
3. The CIT, Exemption, Pune.
4. The Pr. CIT/CIT concerned.
5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच,
पुणे / DR, ITAT, “A” Bench, Pune.

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Senior Private Secretary

आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.