YOGOMAYA CHARITABLE TRUST,PUNE vs. THE CIT (EXEMPTION), PUNE

This appeal filed by the assessee is directed against the order dated 15.03.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AA of the IT Act.

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 27.09.2023. With a view to verify the genuineness of activities of the assessee and compliance 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 19.12.2023 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. On verification of said information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies in the information furnished by the assessee and issued another notice on 15.02.2024. The assessee complied with the said notice. However, Ld. CIT, Exemption, Pune was not satisfied about the charitable nature and genuineness of the activities of the assessee and rejected the application for registration and also cancelled the provisional registration granted to the assessee on 05.04.2022 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the IT Act. It is this order against which the assessee is in appeal before this Tribunal.

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, & therefore the order is not justified. It was submitted that if Ld. CIT, Exemption, Pune was not satisfied with the explanation, he should have had provided another opportunity to the assessee to explain his case. Accordingly, it was requested before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to provide one opportunity to submit the documents/explanation in support of application for registration.

Ld. DR appearing from the side of the Revenue placed heavy reliance on the orders passed by the subordinate authorities and requested to confirm the same.

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 all the notices issued by the Ld. CIT, Exemption, Pune. It is the sole contention of the assessee that if the reply of the assessee was not satisfactory Ld. CIT, Exemption, Pune should have had provided at-least one more opportunity to the assessee to explain his case. Considering the totality of the facts of the case and in the interest of justice without going into the 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 in support of the application for registration, otherwise, Ld. CIT, Exemption, Pune shall be at