NIRMALA SHAIKSHANIK VA SAMAJIK VIKAS SANSTHA,SATARA vs. CIT EXEMPTION, PUNE

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ITA 40/PUN/2021Status: DisposedITAT Pune27 July 20224 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT (Exemption) failed to consider the object clauses of the trust deed and set aside the order. The matter was remanded back to the CIT (Exemption) for fresh adjudication.

What were the facts?

The assessee applied for registration under Section 12AA of the Income-tax Act, 1961. The CIT (Exemption) rejected the application due to incomplete compliance and lack of evidence regarding the genuineness of activities and charitable nature.

What were the issues?

Whether the CIT (Exemption) properly considered the trust deed's object clauses while rejecting the 12AA registration application. Whether the assessee provided sufficient evidence for the genuineness of its activities.

Which sections of the Income-tax Act were involved?

Section 12AA(1)(b)(ii),Section 12AA(1)(a),Section 2(15)

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Income Tax Appellate Tribunal, ‘A’ BENCH, PUNE

For Appellant: Smt. Deepa Khare
For Respondent: Shri Rajeev Kumar

ORDER

PER S.S. GODARA, JM :

1.

This assessee’s appeal arises against the CIT (Exemption) Pune’s order dated 24-09-2020 in case No. CIT Exemption, Pune/2020-21/10015 in proceedings u/s 12AA((1)(b)(ii) of the Income-tax Act, 1961, in short “the Act”.

Heard both the parties. Case file perused.

2.

Both the learned representatives invited our attention to the CIT (Exemption)’s impugned order declining section 12AA registration to the assessee as follows:

Order under section 12AA(1 )(b)(ii) of the Income Tax Act, 1961 The Applicant has made an online a plication in Form No.10A for approval of the Trust/1 Institution under section 12AA of the Income Tax Act, 1961 on 01-01-2020 under the category of Charitaltle rust/institution. The time limit for disposal of the application has been extended to 31-03=2021 as per CBDT Notification No. S.O 2033 (E) date 24-06-2020 read with provisions of the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020 No. 2 of 2020 dated 31-3- 2020. The applicant is registered with under Bombay Public Trust Act, 1950 with registration No. F-13169.SATARA dated 16-10-202, 2. The application was carefully perused and considered along with its annexures. Thereafter, a letter was issued through ITBA portal to the applicant on 06-02-2020 requesting to upload certain information/clarification by 28-02-2020 in order to 20 in order to process the application. The applicant submitted. its compliance on ITBA portal in response to the said notice. However, it is noticed that the applicant has not made full compliance to the notice issued.

3.

Further, the submission uploaded by the applicant on ITBA portal in response to notice dated 06-02-2020 is' not complete in as much as the applicant has not uploaded NOC from the owner of the premises, Undertaking for non-infringement 2 Nirmala Shaikshanik Va Samajik Vikas Sanstha of 1st Proviso to section 2(15) of the Act, Bank account statements, Supportive credible evidence in respect of activities carried out, as required under the provisions of section 12AA(1 )(a) of the IT Act. As the time barring date was extended, the applicant was given further opportunity vide letter dated 11/06/2020 issued through ITBA Portal, specifically requesting to furnish the documents in this regard. However, it is seen that the applicant has not uploaded required documents inspite of giving ample opportunity. Further, In absence of the copy of NOC from the owner of the premises claimed to have been used by the applicant, the existence of the applicant at the given address itself is doubtful. Therefore, the genuineness of the charitable nature of activities is not established.

4.

Considering the above facts, it is seen that the applicant has not furnished the requisite details on the ITBA portal fully or complied to the notice dated 06-02- 2020 to process the application for granting registration u/s 12AA of the Income- tax Act, 1961. Therefore, I am not satisfied about the charitable nature of objects as well as the genuineness of activities of the trust/t/institution and hence, the request for grant of registration u/s 12AA of the Income-tax Act, 1961 cannot be accepted.

5. In view of the above, I hereby reject the application for grant of registration u/s 12AA(1)(b)(ii) of the Income-tax Act, 1961.”

3. Learned D.R could hardly dispute that the foregoing rejection coming from the CIT(Exemption)’s end rejecting the assessee’s section 12AA registration has nowhere considered its object clauses in the trust deed forming a mandatory condition in (2020) 272 Taxman 7 (SC) Ananda Social & Educational Trust. This is indeed now coupled with the fact that the learned CIT (Exemption) concludes that the assessee had not filed the requisite details in the corresponding registration proceedings. Faced with this situation, we deem it appropriate to set aside the instant issue of assessee’s section 12AA registration back to the CIT(Exemption) for his fresh appropriate adjudication as per law within three effective opportunities of hearing. Ordered accordingly.

4. Delay of 88 days in filing the instant appeal stands condoned since falling in Covid-19 Pandemic outbreak period.

5.

This assessee’s appeal is allowed in above terms.

Order pronounced in the open court on 27th day of July 2022.

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